MediSep premiums should not become a burden

Prime Minister Narendra Modi, when addressing the nation, described the GST concessions as Navratri sweets. It is estimated that the changes in the tax on more than 400 products will greatly benefit the middle class and the common people. The Centre and the states are taking steps to ensure that the concessions made in GST are available to the common consumers. A special team of the Consumer Protection Authority will conduct lightning inspections as part of this. It is expected that it will be effective.

Meanwhile, the insurance company's demand to increase the Medisep premium is causing difficulties for government employees. It has been decided to give the next phase of Medisep to the existing contractor, Oriental Insurance Company. The Finance Department's position is that the premium can be increased to Rs 750. Now it is Rs 500.

The current contract is for three years with a coverage of Rs 3 lakh per year. The new contract will be for two years, with a coverage of Rs 5 lakh. Knee and hip replacement surgeries will also be included in the basic package. The daily hospitalisation fee in private hospitals has been fixed at Rs 5,000 and in government hospitals at Rs 2,000 per day. The company is demanding an increase in the premium amount in this context. The Finance Department has said that it is willing to increase the premium by 5 percent in the second year. However, the company argues that it will not be beneficial as there will be an increase in the package by 5 percent.

There is also concern about whether policyholders will get the benefit of the tax cut in the long run as health and life insurance companies cannot claim input tax credit (ITC) under the GST reforms. Experts estimate that the basic premium rates may increase by three to five percent in the future as the costs for companies will increase. It is expected that there will be a significant reduction from the current rate, even if the premium rate increases. However, the full benefit of the 18 percent tax exemption may not reach the people. Input tax credit is a system for claiming GST paid on products and services used by insurance companies for their daily operations. The tax paid by companies could be deducted from the tax collected from the users. Only the remaining tax needs to be paid to the government. However, since the tax is completely exempted, companies can no longer claim ITC.

Many beneficial government measures are being rendered ineffective in the name of technology. Most families and individuals have joined some kind of life insurance plan in a busy life situation. Couples are government employees in many households. Increasing the premium amount without any principle will really trouble them. It is the individuals themself who have the greatest interest and care for their own health. The will and interest of those joining the government's welfare schemes should also be considered in this regard. The freedom and right to join or not join MediSep should be left to the employees. It is not good to increase the premium amount all at once in the name of GST exemption. The interest of the employees should be given priority by the Finance Department in this regard. It is hoped that this will be reflected in the discussions with the company.