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Govt plans healthcare for the poor

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September 13, 2005 12:35 IST

The government is planning to introduce health insurance and cheaper medicines to take drugs to people below the poverty line.

"Drug prices are the lowest in India as compared to those in the rest of the world. Yet, 29 per cent of the population that is below poverty line can't buy medicines. Price control alone will not ensure adequate medicare to the poorest sections. We have to be more proactive than that," said Satwant Reddy, secretary in the ministry of chemicals and petrochemicals.

For this purpose, the ministry may procure drugs directly from companies at cheaper rates and market them through "medicare societies".

Rajasthan already follows this scheme. There are also plans to provide health insurance as has been done in Karnataka, and to revamp the National Illness Assistance Fund.

The Rajasthan government has hospital pharmacy stores, where pharma companies supply drugs at 50 per cent discount to the governement. Such societies may be opened countrywide.

Another measure that the ministry is mulling over is providing health insurance cover to the poor. A similar scheme in Karnataka stipulates a premium of Rs 30 per person per annum and covers a person for hospitalisation up to Rs 2,500. The most distinguishing feature here is the compensation of wage loss at a rate of Rs 50 per day for every day of hospitalisation.

Asked which insurance company would collaborate in such a venture, Reddy said "The ministry may give seed money to the states to initiate this. However, details are still being worked out."

Reviving the National Assistance Fund is also on the cards. The fund, which had a corpus of Rs 25 crore (Rs 2.5 billion) a couple of years ago, is now left with Rs 3.5 crore (Rs 35 million). Plans are afoot to channelthe money for aid to the poor, informed a ministry official.

The ministry was also looking at some kind of a tier-based assistance programme wherein the below-poverty-line families would get medicines free of cost while those living above the poverty line would be given 50 per cent discount in healthcare expenditures, the official added.

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<li> Medicare societies to be set up to provide drugs procured cheaply from companies.

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<li> <b>Health insurance cover for poorest planned; revamp of National Illness Assistance Fund likely</b>

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<li> Hospital pharmas may provide drugs at 50% discount; Poorest sections may get drugs free of cost

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<li> <b>Compensation of wage loss at the rate of Rs 50 for every day of hospitalisation</b>

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