Budget 2024: Insurers Expect More Tax Benefits For Health Insurance Sector.
Health insurers are anticipating benefits such as negotiated rates and reduced GST on health insurance premiums in the upcoming Budget 2024.
The upcoming budget from the Modi 3.0 government is highly anticipated by stakeholders, who are expecting more tax benefits for health insurance, relaxed payment norms for MSMEs, and incentives for the agri-tech sector. Finance Minister Nirmala Sitharaman is set to present the full Budget for fiscal year 2024-25 on July 23, marking the first major policy document of the new administration.
Anup Rau, Managing Director and CEO of Future Generali India Insurance Company, highlighted that the deduction limit on health insurance premiums under Section 80D of the Income Tax Act has not been adjusted for the past nine years, despite significant increases in healthcare costs nationwide.
"It would be ideal if the medical insurance limit were linked to inflation and automatically revised annually or biennially. Additionally, extending these benefits to the New Tax regime is crucial as increasing health insurance penetration is essential. We hope the upcoming Budget will announce a hike in the deduction limit on health insurance premiums," Rau stated.
Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance, suggested that reforms such as offering health insurance to employees at negotiated rates, reducing GST on health insurance premiums, and enhancing tax benefits like increased Section 80D exemption limits would make health insurance more affordable and accessible, particularly for the 'missing middle' segment of the population.
"Furthermore, removing the limit on deductions for health insurance premiums for senior citizens would significantly reduce their financial burden," Singhel added.
D S Negi, CEO of Rajiv Gandhi Cancer Institute & Research Centre (RGCIRC), emphasized the need to focus on reforming cancer care in India. He underscored the importance of prioritizing funding for advanced treatments such as immunotherapy and personalized medicine to ensure broader access to these cutting-edge therapies.
"Extending Ayushman Bharat to individuals over 70 years old would greatly benefit senior citizens. However, the current coverage limit of Rs 5 lakh may not be sufficient for critical illnesses like cancer, where treatment costs can range from Rs 15-20 lakh. Therefore, it is crucial to consider increasing the coverage limit for critical illnesses like cancer to provide adequate financial support for patients," Negi suggested.
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