Salaried class feels left out of Pranab Mukherjee’s healthcare reforms

Thirty-four-year-old Sanjay Dewan had really hoped that the finance minister would increase the exemption limit for medical insurance premium under section 80D of the Income Tax Act from the existing Rs15,000.

With an ailing mother and his son suffering from chronic obstructive pulmonary disorder (COPD), any increase in the exemption limit would have benefited him, he said, sorely disappointed.

With increasing healthcare expenses, most people, particularly the salaried class, had high hopes for an increase in the exemption limit. The budget, however, proposes to allow contributions to the Central Government Health Scheme as a deduction. “But will help only the select few who contribute to the scheme,” said PA Ramamoorthy, a medical insurance consultant.

Chartered accountant Pratima Tarak too said that tax payers will be disappointed. “Procedures like angioplasty or knee replacement surgery have become increasingly common and are expensive. The FM should have considered the increasing medical expenses and increased the exemption limits,” said Balaji Gopal, Chembur-resident and a teacher by profession.  

The only highlight for the healthcare sector was that the government increased the outlay to the healthcare sector from Rs 19,534 crore to Rs22,300 crore. “That’s a 14% hike in the outlay, which is a good sign,” said Vivek Desai, managing director, Hosmac India Pvt Ltd, involved in hospital planning & management consultancy.  

“Health insurance has been extended to the entire population covered by the NREGA (National Rural employment Guarantee Act) program. However, this too addresses an entire different class,” said Dr Desai.