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Indo American News • Friday, September 17 , 2010

online edition: www.indoamerican-news.com

Business

Friday, September 17 , 2010

www.indoamerican-news.com

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IndoAmerican News

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Health Insurance should be Mandatory, Says Montek Ahluwalia An element of incentive-cum-compulsion should be introduced, suggests Planning Commission Head

NEW DELHI (Hindu): Planning Commission Deputy Chairman Montek Singh Ahluwalia on Thursday pitched for making it mandatory for organised sector employers to take health insurance cover for employees asserting it would help spread the reach of insurance products. SpeakingattheConfederationofIndian Industry (CII)-organised Health Insurance Summit here, Dr. Ahluwalia said: “There has to be a mandatory provision for providing group health insurance cover to all workers in the organised sector by their employers.”

Deputy Chairman of Planning Commission Montek Singh Ahluwalia. File Photo

“I think it is feasible. The government should give very serious consideration to making it mandatory for employers to get group insurance for their workers. We will never be able to spread health

insurance for which people pay unless an element of incentive-cumcompulsion is introduced. If you leave it to people, only rich persons would buy and even middle-class would not go for it,” he added. Dr. Ahluwalia suggested that one of the incentives could be exempting the part contribution of health insurance premium for workers by the employer. He said there was no point in creating public infrastructure that does not work properly and general public end up bearing the entire expenditure on

getting a patient treated. Asked about whether the private insurance companies should provide cashless health insurance cover, Dr. Ahluwalia said: “We cannot say that all private insurance companies must run cashless insurance.” Admitting that the government’s move of making mandatory health insurance cover for all organised worker would not be the only solution, he said “it is true that we cannot do it for self employed people, but government is running a Rashtriya Sawasthya Bima

INDO AMERICAN NEWS • FRIDAY, SEPTEMBER 17 , 2010 • ONLINE EDITION: WWW.INDOAMERICAN-NEWS.COM

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