Free medicines, health insurance for poor soon: Paswan

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Free medicines, health insurance for poor soon: Paswan

Chemicals and Fertiliser Minister Ram Vilas Paswan promises a new

policy for the poor that will ensure them free medicines, health

insurance and subsidised treatment for tuberculosis, AIDS and cancer.

Email Print Download PDF RSS New Delhi, Delhi, India, 2006-10-08

12:30:13 (IPRW) Chemicals and Fertiliser Minister Ram Vilas Paswan

promises a new policy for the poor that will ensure them free

medicines, health insurance and subsidised treatment for

tuberculosis, AIDS and cancer.

'By Jan 1 we hope to have drug banks operational at district

headquarters that will offer free medication to the poor,' Paswan

said in an interview here.

'The banks will be stocked with the help of the drug manufacturers

who have agreed to provide 0.5 percent of their annual turnover for

this effort,' Paswan told IANS.

As per ministry estimates, drugs worth Rs.450 million are to be

contributed annually towards this effort by small and medium-sized

enterprises in the pharma industry, which has a turnover over Rs.90

billion.

'We are also studying the launching of a health insurance programme

soon for below the poverty line (BPL) families,' said Paswan.

Free medication and health insurance cover for the BPL (below

poverty line) population, estimated at 300 million are expected to

be part of the new policy.

'The 14-member committee formulating the new policy is studying

including the health insurance cover. The final report is expected

by month-end and we will go to the cabinet in November to seek

approval,' Paswan said.

A Supreme Court directive on controlling prices of essential drugs

had initially set the ball rolling on making medical and healthcare

affordable. The committee appointed by the ministry is studying

various ways to achieve this.

As part of the promises made in the United Progressive Alliance's

common minimum programme to provide drugs at reasonable prices to

the common man, the ministry favours adoption of some of the

recommendations of two earlier committees.

It is considering capping the cost of branded drugs at the average

of prices charged by some top producers to protect both consumers

and research and development activities. A final decision is yet to

be taken.

With the government announcing plans of raising the budgetary

allocation for the health sector from 0.9 percent of GDP to 2-3

percent, Paswan said the additional resources would make it possible

to offer health insurance to the poor in rural and urban areas.

'In addition to the proposed hike in health allocation, there is the

Prime Minister's Relief Fund, the Health Minister's Relief Fund and

other contingency funds that can be utilised to provide facilities

for the poor,' said Paswan.

Another important step proposed by the ministry is offering free or

subsidised medication for critical illnesses like cancer and

HIV/AIDS.

'The policy will address the need to provide subsidised drugs for

critical or life-threatening diseases that require expensive

treatment. In the case of BPL population, we hope to offer free

medication. But for those above poverty line (APL), (we will)

provide drugs at 50 percent subsidised rates,' Paswan added.

The innovative step may introduce a new model of drug purchase by

state-run hospitals.

'We have proposed that government hospitals procure medicines for

treatment of cancer, HIV/AIDS, tuberculosis and other critical

illness directly from the manufactures and thereby eliminate the 15

percent wholesaler and 35 percent retailer margin,' said Paswan.

'This is an achievable goal as we have closely studied the Rajasthan

formula, which has succeeded in providing cheaper medicines to

patients,' he said.

The inspiration behind this is the state-run Rajasthan Medicare

Relief Society that directly procures medicines from manufacturers

and sells to patients with a limited mark-up price.

- Lola Nayar

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