In its latest electoral manifesto, the Bharatiya Janata Party (BJP), led by Prime Minister Narendra Modi, has pledged significant support. It aims to extend health insurance coverage to seniors. Additionally, the BJP Manifesto plans to provide affordable insurance options for small businesses. This strategic move is designed to strengthen India’s healthcare system. It also aims to fortify the economic foundation of small-scale enterprises.
Expanding Ayushman Bharat for Seniors
Prime Minister Narendra Modi has promised to expand the Ayushman Bharat scheme, also known as Pradhan Mantri Jan Arogya Yojana (PMJAY), to include all individuals over the age of 70. Launched in 2018, PMJAY is renowned as the world’s largest government-funded healthcare program, providing up to Rs 5 lakh per family per year for hospitalization, covering the poorest 40% of India’s population, which amounts to over 12 crore families.
The extension of this scheme is set to address the healthcare needs of India’s aging population, a significant part of the electorate. This move aligns with the government’s objective to enhance the accessibility and affordability of healthcare, mitigating the financial burden on the elderly, particularly those from the middle class who often face the daunting prospect of funding their medical treatments.
The Rising Cost of Senior Health Care
Healthcare expenses, especially for seniors, have been rising, with insurance claims increasing by 10-30% across all age groups post-COVID-19, and even more so for the elderly. Seniors often face higher premiums due to pre-existing conditions and the natural aging process. According to the latest annual report by the Insurance Regulatory and Development Authority of India (IRDAI), net incurred claims under the health insurance business totaled Rs 64,631 crore in 2022-23, marking a 2% increase from the previous year. These figures underscore the growing financial impact of healthcare, which the expanded Ayushman Bharat aims to alleviate.
Affordable Insurance for Small Traders and MSMEs
In addition to healthcare, the BJP manifesto has put a spotlight on economic security for small traders and Micro, Small and Medium Enterprises (MSMEs). The manifesto proposes the introduction of affordable insurance products to protect these businesses from risks such as fire, theft, and natural disasters, which are crucial for maintaining operational stability and financial health.
“Climate change is a significant concern, and incidents such as floods and cyclones are increasing in frequency across India,” said Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance. He highlighted the necessity for a country-wide parametric insurance scheme to address the protection gap, which stands alarmingly over 90%. Such measures are intended to bolster the resilience of small businesses against natural and man-made disasters, ensuring quicker recovery and sustained economic activity.
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Challenges and Opportunities in Implementing New Policies
The implementation of these ambitious policies presents both challenges and opportunities. For the healthcare expansion to be effective, the government will need to ensure adequate funding and management to handle the increased beneficiary load. This requires not only financial investment but also significant improvements in healthcare infrastructure and workforce.
For the insurance proposals, the challenge lies in creating products that are truly affordable and offer substantial coverage. This will involve close collaboration between the government, insurance companies, and regulatory bodies to design policies that meet the specific needs of small businesses and provide them with genuine protection without imposing financial strain.
The Political and Economic Implications
These manifesto promises are set against the backdrop of the upcoming elections, where the support of the elderly and the small business community could be crucial for the BJP. By addressing the direct needs of these groups, the BJP aims to not only improve their living standards but also secure a broad base of support.
The economic implications are also significant. By improving healthcare accessibility for seniors, the government hopes to reduce the long-term healthcare costs that burden families and the economy. Similarly, by supporting small businesses through affordable insurance, the government aims to nurture the backbone of the Indian economy, fostering growth and stability.
The BJP’s manifesto for the upcoming elections highlights a dual focus on enhancing healthcare for seniors and bolstering economic security for small businesses. These initiatives, if successfully implemented, promise to transform the healthcare landscape for India’s elderly and provide a much-needed safety net for its small enterprises. The coming years will be crucial in assessing the effectiveness of these policies and their impact on the socio-economic fabric of the nation.