Medical inflation

Aprivate member’s Bill introduced in the Rajya Sabha seeks setting up of a national commission to control medical inflation, an issue of immense public interest. CPI’s P Santhosh Kumar has put the spotlight on the dire need to regulate and standardise the rising costs of medicines, diagnostic tests and pathological examinations. The Bill flags the annual increase in expenses related to healthcare, the inexplicable divergence in rates and the devastating blow that healthcare costs can cause. It claims that last year, India witnessed the highest medical inflation rate of 14 per cent among Asian countries.

Data suggests that almost 60 per cent of all hospitalisations and 70 per cent of out-patient services in the country are catered to by the private sector. Nearly 63 per cent of healthcare expenditure is out of pocket. A study has come out with startling figures that 7 per cent of India’s population is pushed into poverty every year because of healthcare costs. The Centre’s efforts on universal health coverage are noteworthy, but a sizeable number of people who are eligible are still not insured. Even those covered under government schemes are not safe from unexpected health emergencies. There are private facilities that provide assistance to poor patients, but the number is minuscule. Most hospitals follow market-based pricing for tests and allied services. The patients and attendants have little choice but to shell out the fee charged, no questions asked.

The Bill wants a cap on the rate charged for every procedure and test, standardisation of medical expenses and a quality assurance framework. The demands are a reflection of the everyday realities of crores of Indians. Healthcare is a public good. It is the responsibility of the government to ensure affordable and equitable access. To that end, the list of essential drugs with a price ceiling keeps growing. Availability is a problem, and so is lack of awareness. Pharma companies claim that lower profit margins narrow the window to innovate, invest in research and can be a factor in exiting the category under regulation. A serious, informed discussion in the House would be in order.

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