As India gets ready for the introduction of Modicare, reported to be the largest government-sponsored insurance scheme in the world with a target population of 500 million, we highlight five key points about the revolutionary health scheme.
1. The poor are the primary beneficiaries of this scheme
Modicare’ s predecessor, the government-run health insurance programme Rashtriya Swasthya Bima Yojana (RSBY), covered only those identified in the national census as below the World Bank-defined ‘poverty line’ of $1.90 per day. Under Modicare, coverage criteria will expand to include identified occupational categories of urban workers’ and their families.
2. The scheme covers secondary and tertiary care only
There are approximately 1,500 secondary and tertiary care procedures nominated in the package of services covered under the scheme.
3. Responsibility for financing the scheme will be shared between the Central and the State governments
Purchasing will occur through a State-run trust fund or a market-driven tendering process. The States will be given flexibility over the financial administration of the scheme.
4. Beneficiaries can avail benefits in both public and empanelled private facilities
States will be given flexibility over choice of care providers and means of purchasing and procurement.
5. The Scheme will pioneer the use of a novel digital information capture system
Utilising India’s biometric ID scheme, ‘Aadhar’ identification cards will be used to capture details of enrolment, claims and reimbursement activity in each State.
The rollout of such an ambitious scheme in a country as large and diverse as India faces challenges, including the identification of and outreach to beneficiaries; putting in place adequate governance and regulatory mechanisms to reduce fraud and low value care; and making sure finances allocated to provide for the scheme match local need.
Ensuring the delivery of high quality of care will perhaps be the most important challenge to address, given India’s recent ranking in terms of quality and accessibility of healthcare in the Lancets’ Global Burden of Disease study.
Nevertheless, Modicare represents a unique opportunity to provide access to healthcare to a population that sorely needs it, moving India one step closer to Universal Health Coverage and bridging economic, gender and social divides.
The scheme is due to launch next week on 25 September.