Health Insurance Budget 2024: Coverage, Claims, and Costs Explained

On July 23rd, 2024 Finance Minister Nirmala Sitharaman announced her 7th union budget in the parliament for the financial year 2024-2025. The latest Union budget announced key changes regarding tax reforms, education, employment generation, the healthcare sector, and more.

The budget announced is the action plan designed for the development of India in the upcoming 5 years by the ruling Government of India. To strengthen and reform the healthcare sector, the funds announced are a total of ₹ 90,958.63 crore. The announcement of the Union budget has received mixed reactions from the healthcare sector. Many leaders of health tech and medical tech companies believe it to be a series of hits and some misses.

In this article, we explore the multiple Healthcare Budget 2024 highlights and uncover the truth of how it affects the common man.

Health Insurance Deduction Limits Increased Under 80D: Budget 2024

The insurance industry collectively recommended increasing the tax deduction limits for health insurance buyers. Deduction limits are currently capped at INR 25,000 for health premiums paid for self, spouse, and dependent family members and INR 50,000 for health premiums paid for senior citizen health plans.

The recommendation is to elevate this limit to Rs 50,000 for individuals, their spouses, and dependent children and INR 1 lakh for senior citizens. This change will further encourage the Indian population to invest in health insurance helping the government to achieve the aim of ‘Insurance for All by 2047’. Additionally, the reform will aim at providing extensive coverage concerning consistently changing healthcare needs and help in fighting medical inflation.

Ayushman Bharat Pradhan Mantri – Jan Arogya Yojana (AB PM-JAY): Focus of Health Insurance Budget 2024

A health insurance scheme launched as the flagship health insurance by the Government of India debuted in 2017. In the latest developments announced at the Union Budget 2024, the total health cover amount is to be increased to INR 10 Lakhs from the existing INR 5 Lakhs. FM Nirmala Sitharaman has announced an increase in allocation towards AB PM-JAY to INR 7,300 crores from INR 6,800 crores in the past.

As of January 2024, AB PM-JAY has issued over 30 crore health cards across the country, and over 181 health cards are issued every minute. As per data, Uttar Pradesh tops the list of states with the highest number of Ayushman cards issued at 4.83 crore followed by Madhya Pradesh and Maharashtra at 2nd and 3rd positions respectively.

However, there is no increase in budget allocation for Ayushman Bharat Digital Mission (ABDM), which remains the same at INR 200 Crores.

Healthcare Sector Developments Under The Union Budget 2024-25

Focusing on the healthcare sector of India, FM Nirmala Sitharaman made multiple key announcements at the 2024 union budget. The Indian Council of Medical Research (ICMR) budget allocation increased to INR 2,732.13 crore from INR 2295.12 crore. Additionally, the National Health Mission received INR 36,000 crore.

Tele-MANAS, the government initiative providing free mental health services to the people of India received a budget allocation of INR 90 Crores, increasing from 65 Crores in the last union budget. Globally renowned, the All India Institute of Medical Science (AIIMS), Delhi received an increased budget from INR 4,278 crore to INR 4,523 crore.

A positive step was taken towards making cancer-treating drugs accessible to the Indians. The Finance Minister announced full exemption of customs duty on three key cancer drugs. The union budget also announced a slash in customs duty for X-ray tubes and digital detectors.

Wrapping It Up

The Union Budget 2024-25 was presented by the Finance Minister of India, Nirmala Sitahraman, and GOI with the vision of transforming India into 'Viksit Bharat' (Advanced India).

The budget emphasized inclusive development and prioritized 9 key areas: Agriculture, Employment and Upskilling, Social Justice, Manufacturing, Urban Development, Energy, infrastructure, Research & Development, and Next-Gen Reforms.

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