Health Insurance, Budget Expectations: Reforms such as reduction in GST on health insurance premiums and tax benefits such as increase in exemption limit under 80D will make health insurance more affordable and accessible
Health Insurance Budget Expectations: Before the budget, the insurance industry has demanded to increase the tax exemption limit on health insurance premium and to give its benefit in the new tax system as well. Apart from this, important demands like expansion of Ayushman Bharat, insurance to employees at lower rates, insurance to senior citizens at lower rates, reduction in custom duty on medical equipment have been made to Finance Minister Nirmala Sitharaman. The Finance Minister will present the budget for 2024-25 on July 23.
Get more tax exemption, should be linked to inflation
Anoop Rau, Managing Director and Chief Executive Officer (CEO) of insurance company Future Generali India Insurance, said that despite the sharp 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. He said that it would be best if the limit of medical insurance is linked to inflation and it is automatically revised 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. Therefore, we hope that some increase in the exemption limit on health insurance premium will be announced in the upcoming budget.
Bajaj Allianz General Insurance Managing Director and Chief Executive Officer Tapan Singhal 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. Singhal said that in addition, removing the deduction limit for health insurance premium for senior citizens will reduce their financial burden significantly.
Cancer treatment is expensive, Ayushman Bharat should be expanded
Rajiv Gandhi Cancer Institute and Research Center (RGCIRC) Chief Executive Officer DS Negi 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 that expanding 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.
Custom duty should be reduced
Pawan Chaudhary, President of Medical Technology Association of India (M-Tai), said that the custom duty and tax imposed on medical devices in India is the highest in the world and it directly affects the patients. He said that on the other hand, countries like Singapore, Hong Kong, Italy and Norway do not impose any such duty. Australia and Japan only impose a minimum duty of 0.5 percent, while it is two percent in the US and three percent in China. He said that in such a situation there is a risk of illegal import of medical devices in India. Such trade will reduce the country’s revenue.
