India launches world’s biggest health care scheme, dubbed as ‘Modicare’ 

As envisioned, India's "Modicare" will cover some 500 million people who fall below the poverty line. (Shutterstock photo)
Updated 23 September 2018

India launches world’s biggest health care scheme, dubbed as ‘Modicare’ 

  •  “Modicare” plans to provide around $7,000 of medical coverage to half a billion people
  • The program has been launched in 400 districts out of 640 in India

NEW DELHI: Indian Prime Minister Narendra Modi launched a mega health care scheme, touted as the world’s biggest public health scheme, on Sunday in the eastern Indian state of Jharkhand. 

The National Health Protection Scheme, popularly known as “Modicare,” plans to provide around $7,000 of medical coverage to 100 million families or 500 million people, accounting for around 41 percent of people who fall below the poverty line.

 “The aim is to provide medical care to the people standing at the very margin of society. It has been a dream to provide health care to the needy and that dream is coming true today,” Modi said in a speech after inaugurating the scheme.

 “This is the first time in the world that a health care program is being launched where an individual will have an insurance cover of 5 lakh rupees ($7,000).”

The program has been launched in 400 districts out of 640 in India.

The intervention is meant to take the burden off the government hospitals and bring the expensive private hospitals within the reach of poor people.

For Ganesh Yadav, a daily wage earner, the “Ayushman Bharat Yojna,” as the program is officially called, is “a good move by the government if it really works.

 “Last year I spent more than 50,000 rupees ($720) in getting a kidney stone removed in a private hospital and I am still struggling to pay back the debt that I incurred. If the Modicare really works then poor people like me will not have to worry about the expenses in health care,” said Yadav, who lives in Noida, a satellite town of Delhi.

But one doctor raises doubts about the success of the program.

“An earlier health scheme also had the provision for insurance cover but the out-of-cost expenses of the poor people could not come down. There is a lack of clarity on this issue in the new scheme as well,” says Dr. Shakil, a cardiologist based in Patna, the capital of the eastern Indian state of Bihar.
 
Talking to Arab News, he asks: “How will you identify the real beneficiaries? Besides, the scheme will not build public health infrastructure but give benefit to the private players, which I think is the real drawback of this policy.
 
“The government is in a hurry to launch the scheme and not many preparations have gone into it before inaugurating it.”

Economist Venkat Narayana questions the budgetary provisions for the scheme. “Under the scheme 60 percent of expenses would be borne by the central government and 40 percent by the state government. But the poorer states cannot afford the huge sums involved in the expenditure,” says Narayana, who also runs NGOs for poor people in Warangal district in the South Indian state of Telangana.

“My experience suggests that such a program does not address the real health care needs of the people living in villages and smaller cities. The money that the government plans to spend on insurance can be spent in expanding and enriching the medical infrastructure across the country.”

But Nirala, a political activist associated with the ruling Bharatiya Janata Party, feels that “this is a visionary intervention in the health care system of the country.

“Modi has tried to address the gap that exists in medical system of the country by bringing private hospitals within the reach of the poor masses,” he told Arab News.

Political analyst Pawan Pratyay, however, feels that Prime Minister Modi "has played a big political gamble in the election year by launching this attractive looking and sounding health care policy.

“The government has been cutting the health budget year after year. By bringing this pro-poor scheme Modi wants to change the pro-rich image that he has acquired over the years and attract the voters from the economically marginalized demography.” 


‘Clear risks’ for stability in China’s Pacific lending, Australian think tank warns

Updated 25 min 34 sec ago

‘Clear risks’ for stability in China’s Pacific lending, Australian think tank warns

SYDNEY: China’s financial largesse in the Pacific carries “clear risks” for stability if left unchecked, a Sydney think tank warned, while saying allegations of “debt-trap” diplomacy are so far overblown.
In a study released Monday, the influential Lowy Institute warned that fragile Pacific nations risked borrowing too much and leaving themselves exposed to demands from Beijing.
China has repeatedly been accused of offering lucrative but unserviceable loans to gain leverage or snap up strategically vital assets like ports, airports, or electricity providers.
While Lowy said allegations that China was engaged in “debt-trap” diplomacy in the Pacific were overblown, the trend was not positive and countries like Papua New Guinea and Vanuatu were dangerously exposed.
Between 2011 and 2018, China committed loans to the region worth $6 billion — around 21 percent of regional GDP.
A majority of that money, $4.1 billion, was earmarked for Papua New Guinea.
Only a fraction, less than $1 billion, has so far been dispersed but China is still the single largest creditor in Tonga, Samoa, and Vanuatu.
“The sheer scale of Chinese lending and the lack of strong institutional mechanisms to protect the debt sustainability of borrowing countries mean a continuation of business as usual would pose clear risks,” the report said.
The South Pacific has become a forum for intense competition for influence between China, the United States, and Australia in recent years.
The island nations sit on a vital shipping crossroad, contain vast reserves of fish stocks, and provide a potential base for leading militaries to project power well beyond their borders.
Beijing has stepped up engagement in the region through a series of high profile visits and no-conditions lending via its Belt and Road Initiative.
The Solomon Islands and Kiribati recently announced they would switch diplomatic recognition from Taiwan to Beijing after a long courtship by the country’s Communist leaders.
Six Pacific governments are currently debtors to Beijing — the Cook Islands, Fiji, Papua New Guinea, Samoa, Tonga, and Vanuatu.
Lowy said many of China’s loans carry a modest two percent annual interest rate.
But it warned that China would need to adopt formal lending rules if loans were to be made sustainable as natural disasters like earthquakes, cyclones and tsunamis can quickly upend countries’ ability to pay back loans.
“Three small Pacific economies — Tonga, Samoa, and Vanuatu — also appear to be among those most heavily indebted to China anywhere in the world,” it said.