The Indian Medical Association (IMA) has called for a significant increase in financial resources allocated to the health sector in the upcoming budget. In a letter addressed to Finance Minister Nirmala Sitharaman, the IMA advocated for a tax-based health financing system. The association highlighted the low government spending on health, noting that allocations ranging from 1.1 to 1.6 per cent of GDP by various administrations are among the lowest globally. The IMA emphasised the urgent need for increased funding to improve the nation's healthcare infrastructure and services.
IMA calls for increased health budget
Urging the Finance Ministry for this year’s union budget, it further demanded that the expenditure incurred on health determinants like drinking water and sanitation should be provided separately. “A minimum allocation for health alone should be around 2.5 per cent of the GDP, the medical body demanded. India’s overall health spending (public and private) is currently estimated to be 3.8 per cent of its GDP, lower than the low- or middle-income country’s (LMIC) average health spending share of GDP of around 5.2 per cent, as per the IMA.
IMA advocates for universal healthcare and higher GDP allocation
Among the major demands, the body urged for tax-funded universal healthcare with a basic package for all citizens. It demanded investments in public sector hospitals, an allocation of 5 per cent of GDP for health, a re-envision of PMJAY to cover outpatient care and the cost of drugs, and facilities for direct patient transfer, copayment, and reimbursement models, among others. IMA suggested that to achieve the goals of Viksit Bharat 2047, “the health sector has to be promoted judiciously and made a priority sector, like industries, education, and agriculture.”
IMA denounces PMJAY system, suggests reforms
The IMA also recommended implementing working capital loan subsidies as a supply-side financing strategy to address cash flow problems within the Pradhan Mantri Jan Arogya Yojana (PMJAY). The association pointed out the complexities introduced by the third-party payer system under PMJAY, stating that it is causing significant disruptions in India's medical care system. The IMA expressed concern that this system, akin to the US healthcare model, is distorting the unique values and advantages of Indian healthcare and leading to the bureaucratization of medical care.
(With inputs from ANI)
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