A research note from industry analyst GlobalData concludes that India’s new national insurance scheme Ayushman Bharat has potential to be a “game changer,” while warning that there are “policy issues which need to be addressed by the government to make it sustainable for all the stakeholders.”
The program is designed to cover the hospitalization costs for poorer rural families, and certain occupational categories of urban workers, up to $7,000.
Dubbed “Modicare,” after Indian Prime Minister Narendra Modi, the scheme has been criticized for the amount of money set aside to cover costs, just 200 billion rupees, or around a fifth of 1% of India’s GDP.
By contrast, the UK spends almost 8% of GDP on its national healthcare provider, the NHS, while France spends 9% of its national income on healthcare.
Analyst Prashant Khadayate said: “It is understood that the government intends to bring new pharma policy which will unify and synergize the pharma and medical devices sector and could provide some relief.”
He added: “The different aspects that the government is focusing on include the Drug Price Control Order (DPCO), and various other policies related to the manufacturing, R&D, financing, quality control, drug control and price control of medical devices.”
Read more at The Pharma Letter