Is the National Health Protection Scheme Good Public Policy

India recently announced an ambitious plan called the National Health Protection Scheme (NHPS) to provide government-sponsored insurance to roughly 500 million people or nearly 40% of India’s population. Since the announcement, there has been much debate about two issues. First, does this plan make sense? Second, if it is a good idea, what should the design of NHPS look like?

So, is the NHPS a good idea? Definitely yes. There are several reasons.

  • First, India under-invests in the healthcare of its citizens and this is affecting the health and financial well-being of Indians.
  • Out-of-pocket payments for healthcare services are very high ....
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