The contribution to the Contributory Health Service Scheme of the Department of Space is notified by the Central Government. The scheme is governed by the Income-tax Act, 1961. Its benefits are provided to eligible members and their dependents. Its eligibility criteria include the willingness to pay for the scheme and cost sharing. However, there are several questions that need to be answered before it can be implemented. In this article, we’ll discuss some of them.
Cost Sharing
If you’re a member of a contributory health service scheme, you know how much cost sharing will impact your family budget. Average payments for deductibles and coinsurance are higher at the beginning of the year, but will gradually decrease as you make more healthcare visits during the year. However, this out-of-pocket cost sharing can quickly add up. Listed below are examples of the various types of cost-sharing and how they can affect your budget.
The first thing to know is that cost sharing is the percentage of the total medical cost that a member has to pay for medical services. Most people who have high out-of-pocket costs pay more than the average for their health coverage. To figure out how much you have to pay, calculate your income and family size. For example, if you earn 140 percent of the poverty level, you’ll receive a silver plan with an out-of-pocket limit of $2,850 per year.
When it comes to costs, a contributory health service scheme is a good solution for the poor and middle-income families. By increasing benefits coverage, you can help the poor reduce their catastrophic and out-of-pocket health expenditures. This type of insurance scheme is effective for a lower-income demographic, but may not be as effective for high-income households. If you’re wondering why this type of health care insurance is so common, here’s why:
Subsidization
A subsidized contributory health service scheme is a social insurance system that covers health care expenses for a subset of the population. Such a scheme receives payments from the general government in the form of taxes. This money is used to help cover the costs of hospitalization and other medical services. The majority of subsidized contributory health service schemes are integrated. This allows cross-subsidization of the scheme between contributors and subsidized members.
In China’s NRCMS, the central government only subsidized members who met an enrolment target. In addition, local governments actively encouraged households to enroll. In the Yeshasvini scheme in India, cooperative secretaries were required to reach a certain percentage of members to become enrolled in the scheme. In the Philippines, local governments were responsible for enrolling the poor in PhilHealth, and funded the subsidy.
In Asia, subsidies of health insurance-type arrangements are becoming more common. There are currently 14 such arrangements in eight countries. Most are low-income countries (Chile is the only one of them with a high-income status). China, India, and Indonesia all have several subsidization arrangements for different populations. These schemes are publicly financed and regulated. In India, five schemes are run by private insurance companies.
However, while these schemes are not nationwide, their approach is not entirely incompatible with universal coverage. Most subsidization schemes have significant OOP expenditure. In addition, cost-sharing rates for subsidized people are lower than for contributors. The remaining cost-sharing is problematic for subsidized low-income groups, because they tend to forgo health care. So, these schemes are only viable if they can make a difference to poor people.
In 10 of the 14 subsidization schemes, the government pays the full portion of the cost and does not require the beneficiary to pay any money. In contrast, the RSBY in India charges a small annual registration fee that is usually between 4 and 7 percent of the government’s subsidy. Therefore, the rate of enrollment may be lower than expected. However, the underlying principles remain the same.
Ex-Servicemen Contributory Health Scheme
The Ex-Servicemen Contributory Health Service Scheme (ESCHS) is the flagship health care scheme of the defence ministry and it was introduced on 1 April 2003. The scheme covers allopathic as well as Ayurvedic medicine and was designed to minimise administrative expenditure. Almost 150 lakh Ex-Servicemen are covered by the scheme. Various factors make it unique in the healthcare industry. Its main aim is to provide affordable allopathic and AYUSH health care.
First, ex-Servicemen have a right to health care. It is a fundamental human right. The government is legally bound to provide the necessary health care facilities to the serving personnel. Furthermore, the government has a duty to reimburse the medical expenses of the ex-servicemen. Ex-Servicemen Contributory Health Service Scheme benefits are tax-deductible. The scheme’s benefits are many, and there are several ways to avail them.
The Ex-Servicemen Contributory Health Service Scheme is administered by the Department of Ex-Servicemen Welfare. This office has executive control over the scheme and is linked to the existing medical infrastructure of the Armed Forces. The government has augmented the monetary ceiling for the purchase of medicines and other medical supplies to ensure that ECHS beneficiaries receive the right kind of care. The government has also modified its procurement procedures for ECHS beneficiaries, allowing reimbursement of the costs of medicines bought from the open market.
The Yojnaa ko shuruu krne, or YCHS, is another name for this scheme. YOJNAA ko shuruu krne refers to the scheme’s monetary benefit. It offers the same health care benefits to members of the military and their families. It is a health insurance scheme for veterans and their families.
Willingness to Pay
Willingness to pay (WTP) for a contributory health service scheme is the willingness of individuals or households to contribute to the cost of a public health insurance scheme. The percentage of people who are willing to contribute to a social health insurance scheme is related to the income level of the breadwinner and the size of the family. A contributory social health insurance scheme would ensure universal coverage of health care costs.
The study examined the willingness of rural residents in Akwa Ibom State, Nigeria to contribute to a contributory health service scheme. It employed the double bounded dichotomy method and contingent valuation to examine their willingness to pay for such a scheme. Although rural dwellers are not covered by any health insurance scheme, majority of respondents remained willing to pay for a social health insurance scheme.
The survey included several open-ended questions as well as multiple-choice questions. It was important to note that rural residents were more likely to contribute to a social health service scheme, compared to their urban counterparts. In addition, this study focused on publicly-provided health insurance, while private health service schemes may be more expensive. In addition, respondents were asked if they were interested in joining a health cooperative.
In addition to answering these questions, respondents reported that they were willing to pay a substantial amount of their income under the different BHIs. A baseline BHI with a ceiling and deductible had the lowest WTP, while a BHI without a ceiling or coinsurance was the highest WTP. Among the different age groups, WTP was higher for the baseline BHI. The differences were not significant between the ages of respondents.
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