Further, the setting up of more hospital infrastructure in Tier-II and III cities under PPP model via viability gap funding, will further be a boost for the healthcare ecosystem and benefit the underprivileged families which were devoid of basic medical facilities. India has recorded highest out of pocket expenditure on healthcare, as compared to other developing countries. The measures proposed in the budget will support to regulate the gap and play an important role in making health a priority for one and all and creating further awareness for health insurance.
However, the budget didn’t address the long pending request of the health insurance industry to remove or minimize GST slab for health insurance premiums paid. As health insurance penetration is still low in the country, change in the GST slab could have been a big driving factor for the consumers to invest in health insurance.”
- Ashish Mehrotra, MD & CEO, Max Bupa Health Insurance