BENGALURU: Health Minister Dinesh Gundu Rao has written to Prime Minister Narendra Modi, seeking a cut in the 18% GST on health insurance for middle- and low-income policyholders.
Ahead of the GST Council meeting scheduled for Monday, Gundu Rao, in his letter, highlighted the adverse impact of the high tax rate on accessibility and affordability of health insurance, especially for economically weaker sections of society.
The minister emphasised that healthcare was one of the most essential services that impacted the lives of millions. He pointed out that India’s healthcare system has evolved significantly, aligning with the vision of the country’s founding leaders and making strides towards universal healthcare through schemes like Arogya Karnataka, launched in 2018, and Ayushman Bharat.
“While these government initiatives aim to provide accessible healthcare, the importance of health insurance as an additional safeguard during medical emergencies and specialised treatments that are beyond government coverage cannot be understated,” Gundu Rao said.
He criticised the high GST rate on health insurance, describing it as contradictory to the Union government’s goal of achieving “universal insurance coverage by 2047.” He said the 18% GST, one of the highest brackets of taxation since 2017, discourages people from purchasing health insurance, particularly the economically disadvantaged.
The minister stated that the high GST inflates premium costs, making insurance unaffordable for lower-income groups who are often forced to choose between basic necessities and health coverage. He noted that this exposes families to financial distress during medical emergencies, undermining the broader goal of universal healthcare.
Further highlighting Karnataka’s success with cashless state health insurance schemes, Gundu Rao underscored the need for a dual coverage system combining government health insurance and private policies as essential for public welfare.
The minister urged the GST Council to reconsider the tax rate on health insurance, advocating for a reduction as a crucial step towards achieving the Union government’s 2047 vision of universal insurance coverage.
Health, education key to India’s future as superpower: Minister
Bengaluru: India’s path to becoming a superpower hinges on empowering every citizen through robust health and education systems. Good education and healthcare are interlinked, starting from the health of a mother, which impacts the child’s growth and future potential, Health Minister Dinesh Gundu Rao said at the Confederation of Indian Industry (CII) Innoverge Summit on Friday.
On neonatal care, he noted that the most crucial stages of development occur in the womb and the first two years of a child’s life, and any shortcomings during this period can have lifelong consequences. Gundu Rao stressed that technology will play a vital role in making healthcare accessible to the masses, citing Karnataka’s initiatives in leveraging artificial intelligence (AI) and telemedicine to provide specialist care in rural areas. Noting that early detection and prevention are far more cost-effective than curative treatments, Gundu Rao invited innovators to collaborate with the government.