Extending Ayushman Bharat to those above 70 years of age will be highly beneficial for senior citizens. Also, it needs to be noted that the current limit of Rs 5 lakh is not sufficient for serious diseases like cancer.
Experts have suggested increasing the tax exemption limit on health insurance premium before the budget and also giving its benefit in the new tax system. Finance Minister Nirmala Sitharaman will present the Budget for 2024-25 on July 23. This will be the first major policy document of the third term of the Narendra Modi government. Anup Rau, Managing Director and Chief Executive Officer (CEO) of insurance company Future Generali India Insurance, said that despite the significant increase in the cost of health care across the country, the deduction limit on health insurance premium under Section 80D of the Income Tax Act has remained unchanged for the last nine years.
Health insurance limit should be linked to inflation
He said, “It would be best if the limit of medical insurance is linked to inflation and gets revised automatically every one or two years. Also, there is a need to increase the benefits of health insurance in the new tax system as it is important to increase its reach. That is why, we hope that some increase in the exemption limit on health insurance premium will be announced in the upcoming budget.” Tapan Singhal, Managing Director and Chief Executive Officer of Bajaj Allianz General Insurance, said that reforms such as offering health insurance to employees at lower rates, reduction in GST on health insurance premium and tax benefits such as increase in exemption limit under 80D will make health insurance more affordable and accessible.
Limit up to Rs 5 lakh is not sufficient for diseases like cancer
Singhal said, “Apart from this, removing the limit of deduction for health insurance premium for senior citizens will reduce their financial burden significantly.” DS Negi, Chief Executive Officer of Rajiv Gandhi Cancer Institute and Research Center (RGCIRC), said that it is important to focus on improving cancer care in the country. It is important to ensure that all patients have access to these state-of-the-art treatments.” He said, ”Extending Ayushman Bharat to those above 70 years of age will be highly beneficial for senior citizens. Also, it needs to be noted that the current limit of Rs 5 lakh is not sufficient for serious diseases like cancer. The cost of treatment of this disease can go up to Rs 15-20 lakh.
Customs duty on medical devices is the highest in India
Pawan Chaudhary, President of Medical Technology Association of India (M-Tai), said that the customs duty and taxes imposed on medical devices in India are the highest in the world and it directly affects the patients. He said, ”On the other hand, countries like Singapore, Hong Kong, Italy and Norway do not impose any such duty. Australia and Japan impose only a minimum duty of 0.5 percent. Whereas in America it is two percent and in China it is three percent. He said, ”In such a situation, there is a risk of illegal import of medical devices in India. Such trade will reduce the country’s revenue.”
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