The Union Budget for 2023 has paid close attention to the health sector as the world struggles to recover from the effects of the coronavirus epidemic and international health organisations issue warnings about future outbreaks of infectious diseases.
The Union Budget 2023 highlights the government's continued commitment to improving the health insurance landscape and providing financial security to citizens.The government has proposed investing in healthcare infrastructure and insurance schemes to ensure that all citizens have access to quality healthcare services.
The budget proposes an increase in the overall deduction limit from the current Rs 1.5 lakhs to Rs 2 lakhs under Section 80C of the Income Tax Act, 1961. This would allow you to save more of your income and invest in various instruments such as insurance policies, provident fund contributions, national savings certificates, etc. The Union Budget of 2023 is directed towards promoting a culture of thrift and savings in the country.
Union budget 2023 highlights for health insurance
Health insurance in India is vital in ensuring access to quality medical care and strengthening the country's healthcare system.
Health insurance in India has been gaining importance in recent years, with the government and insurance companies launching schemes offering coverage for a wide range of treatments. Health insurance covers medical treatments, hospitalisation costs, and sometimes even preventive care. Given that Section 80C of the Income Tax Act offers significant tax benefits, any possible change or augmentation to the current norms is always a major update for the common mass.
Here are the highlights of the Union Budget 2023 for health insurance:
- Expansion of Pradhan Mantri Jan Arogya Yojana (PMJAY): This scheme provides a cover of up to Rs. 5 lakhs per family per year for secondary and tertiary care hospitalisation. The government has increased the budget allocation for PMJAY from Rs. 6,400 crores to Rs. 7,350 crores for FY 2023. This budget will be used to expand the scheme to cover additional 500 million beneficiaries.
- Increase in tax benefits for health insurance: In the Union budget 2023, the government has increased the tax benefit for health insurance premiums from Rs. 25,000 to Rs. 50,000 for individuals and from Rs. 50,000 to Rs 75,000 for senior citizens. This will encourage more people to buy health insurance policies.
- Introduction of Health Insurance Portability: The government has introduced the Health Insurance Portability scheme, which will allow you to switch to different health insurance providers without losing the benefits of your existing policy.
- Increase in insurance coverage for senior citizens: The government has increased the insurance coverage for senior citizens from Rs. 2 lakhs to Rs. 5 lakhs for FY 2023.
- Expansion in the network of public health facilities: This will provide quality healthcare facilities to all citizens. This includes setting up new hospitals, health centres, and health camps.
- Increase in the government's spending on public health infrastructure and services: It includes improving the quality and availability of drugs, vaccines, medical equipment, and diagnostic facilities.
- Launch of 'Health Insurance Exchange': This will allow you to purchase health insurance policies from multiple insurers in one place, reducing the cost of health insurance and making insurance more accessible.
- Enhancement of existing Rashtriya Swasthya Bima Yojana (RSBY): It provides health insurance coverage for below-poverty-line households. The budget has proposed to increase the scheme's coverage and introduce new features, such as coverage for pre-existing diseases.
- Establishment of a 'National Health Authority': It will be responsible for implementing the various health initiatives proposed in the budget.
The government's focus on health in the Union Budget 2023 will impact the nation's overall health and well-being positively. By improving access to quality healthcare and making health insurance more affordable, the government has taken an important step towards achieving universal health coverage in India.
Increase in healthcare spending: The promise of better healthcare in India
With a 12 % rise in funds allocation to the health sector, the government aims to create a healthier, more accessible, and affordable healthcare system in India. To achieve this, the budget focuses on increasing the funding for public health centres and hospitals and increasing the number of medical professionals in the country.
Additionally, the budget will invest in technological advancements in healthcare, such as telemedicine and telehealth, to make healthcare services more accessible to remote and underserved areas. Lastly, the budget will support preventive healthcare initiatives, such as public health awareness campaigns, to improve the population's overall health.
Tax rebates for health insurance premiums
The Union Budget 2023 looks to provide substantial tax relief to individuals and
households through rebates on health insurance premiums. The proposal seeks to raise the rebate from the current Rs 25,000 to Rs 50,000 for individuals and from Rs 50,000 to Rs 1 lakh for families. This will enable more people to take advantage of the tax relief offered by the government and help them cope with the costs of medical care.
Furthermore, the government has proposed to reduce the GST rate on health insurance premiums from 18% to 12%. This will help reduce the overall cost of your health insurance premiums, making them more accessible. The increased tax rebate and GST reduction are expected to encourage more people to purchase health insurance and make it easier for them to access quality healthcare.
The proposed investments in healthcare infrastructure and health insurance policies will ensure that the country is well-equipped to tackle any health emergency. By implementing these measures, the Union Budget 2023 will lay the foundation for a more robust health insurance system in India and will go a long way in promoting the health and well-being of the people of India.
Disclaimer: The above information is for illustrative purposes only. For more details, please
refer to the policy wordings and prospectus before concluding the sales.