Page 50 - Ebook health insurance IC27

The Insurance Times

Health Financing in India has much the same sources as elsewhere worldwide.
Various employment based health coverage already exist in India, like ESI, CGHS,
the schemes for serving and retired employees of the Armed Forces, Railways,
Paramilitary forces and other government organizations, and various health
coverage schemes and benefits provided by banks, insurers, other public sector
companies and private sector employers.

(iii) Public expenditure on health in India - Out of the total health expenditure in
the country, the share of public or government spending, i.e that of Central, State
and Local Governments taken together, is about 1/5 th of the total health
expenditure. It comprises of 1 % of the GDP, which is poorer than even China,
Sri Lanka or Thailand.

(iv) National Rural Health Mission - NRHM is one of the most significant
development in the public health financing system of India. The introduction
of NRHM brought additional money for the health sector, as also several
health financing innovations like 'untied funds'.

These untied funds enabled resources to be made available to health facilities
and community level bodies without earmarking to line items, making it possible
to spend these funds, within the guidelines of the program, on virtually any
area where the facility requires.

NRHM also attempted integration of the vertical disease control programs
under a single umbrella. Strengthening the infrastructure of public health
facilities in terms of building, equipment and human resources, including powers
delegated to facilities to hire specialist doctors on contract basis, have been
other focus areas in mission.

5 4 Guide for Health Insurance