The central government on Monday (Sep 9) postponed the announcement regarding a potential reduction in the&nbsp;Goods and Services Tax (GST) on health insurance premiums. Chaired by Union Finance Minister Nirmala Sitharaman, the 54th GST Council meeting instead formed a group of ministers (GoM) to examine the issue.&nbsp;

The&nbsp;GoM will submit its report on&nbsp;insurance-related matters for senior citizens, life insurance, term insurance and group insurance by October end. Meanwhile, the council is expected to discuss removing GST or reducing it in the November meeting.&nbsp;&nbsp;&nbsp;

On Monday, the Fitment Committee, comprising the centre and state tax officials presented a report giving data and&nbsp;and analysis and implications of GST reduction on life, health and reinsurance premiums.

West Bengal Finance Minister Chandrima Bhattacharya stated that the majority of ministers were in support of reducing GST on insurance premiums.&nbsp;

"The issue of GST on health insurance was raised by me. I said that the full exemption should be given. The Chief Minister of Goa supported me. Many of the ministers were of the view that it has to be reduced," said Bhattacharya after the meeting.&nbsp;

"They were agreeable to reduce but from 18 per cent to 5 per cent. Now, whether it will be exempted or it will be reduced to 5 per cent, GoM has been constituted, which will give its report by October last and then it will be decided in the next meeting."

In the lead-up to Monday's meeting, reports emerged that the government was planning to do away with the GST on health insurance premiums that had been pinching the common man.&nbsp;At present, premiums for both health and life insurance policies are subject to an 18 per cent&nbsp;GST.

<a href="https://www.wionews.com/videos/indias-health-insurance-big-growth-bigger-gaps-755162">Watch |&nbsp;India’s health insurance: Big growth, bigger gaps</a>

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<h2>Gadkari had urged&nbsp;Cabinet colleague in July</h2>

A leaked letter by&nbsp;Union Minister for Road Transport &amp; Highways Nitin Gadkari, written to Sitharaman, showed that the senior minister was also in favour of doing away with GST on insurance premiums.&nbsp;

"Levying GST on life insurance premium amounts to levying tax on the uncertainties of life," Gadkari said in his letter to Sitharaman, dated July 31.

<a href="https://www.wionews.com/business-economy/nirmala-sitharaman-gets-good-news-for-hostel-goers-railway-services-top-points-of-gst-council-meet-734230">Also read |&nbsp;Nirmala Sitharaman gets good news for hostel goers, railway services: Top points of June GST council meet</a>

"The Union feels that the person who covers the risk of life's uncertainties to give some protection to the family should not be levied tax on the premium to purchase cover against this risk."

<h2>What else was announced?</h2>

Sitharaman announced a reduction in GST rate on&nbsp;specified cancer drugs from 12 per cent to 5 per cent.

“You would recall that we had slashed customs duties on them and now the GST rate is being reduced from 12 per cent to 5 per cent&nbsp;to further reduce cancer treatment costs,” she said.

Additionally, funds&nbsp;given for research to State-affiliated universities, those that have come about under State or Central laws, or those that have obtained Income Tax exemption, can receive research funds both from the public&nbsp;and private sectors and will be exempt from paying GST.&nbsp;

(With inputs from agencies)

The central government on Monday (Sep 9) postponed the announcement regarding a potential reduction in the Goods and Services Tax (GST) on health insurance premiums.

The central government on Monday (Sep 9) postponed the announcement regarding a potential reduction in the Goods and Services Tax (GST) on health insurance premiums. Chaired by Union Finance Minister Nirmala Sitharaman, the 54th GST Council meeting instead formed a group of ministers (GoM) to examine the issue. The GoM will submit its report on insurance-related matters for senior citizens, life insurance, term insurance and group insurance by October end. Meanwhile, the council is expected to discuss removing GST or reducing it in the November meeting. On Monday, the Fitment Committee, comprising the centre and state tax officials presented a report giving data and and analysis and implications of GST reduction on life, health and reinsurance premiums. West Bengal Finance Minister Chandrima Bhattacharya stated that the majority of ministers were in support of reducing GST on insurance premiums. "The issue of GST on health insurance was raised by me. I said that the full exemption should be given. The Chief Minister of Goa supported me. Many of the ministers were of the view that it has to be reduced," said Bhattacharya after the meeting. "They were agreeable to reduce but from 18 per cent to 5 per cent. Now, whether it will be exempted or it will be reduced to 5 per cent, GoM has been constituted, which will give its report by October last and then it will be decided in the next meeting." In the lead-up to Monday's meeting, reports emerged that the government was planning to do away with the GST on health insurance premiums that had been pinching the common man. At present, premiums for both health and life insurance policies are subject to an 18 per cent GST. Watch | India’s health insurance: Big growth, bigger gaps × Gadkari had urged Cabinet colleague in July A leaked letter by Union Minister for Road Transport & Highways Nitin Gadkari, written to Sitharaman, showed that the senior minister was also in favour of doing away with GST on insurance premiums. "Levying GST on life insurance premium amounts to levying tax on the uncertainties of life," Gadkari said in his letter to Sitharaman, dated July 31. Also read | Nirmala Sitharaman gets good news for hostel goers, railway services: Top points of June GST council meet "The Union feels that the person who covers the risk of life's uncertainties to give some protection to the family should not be levied tax on the premium to purchase cover against this risk." What else was announced? Sitharaman announced a reduction in GST rate on specified cancer drugs from 12 per cent to 5 per cent. “You would recall that we had slashed customs duties on them and now the GST rate is being reduced from 12 per cent to 5 per cent to further reduce cancer treatment costs,” she said. Additionally, funds given for research to State-affiliated universities, those that have come about under State or Central laws, or those that have obtained Income Tax exemption, can receive research funds both from the public and private sectors and will be exempt from paying GST. (With inputs from agencies)

India: GST on health insurance premiums to be reduced? Centre moves one step closer

In a recent post on X (formerly Twitter), Zerodha co-founder Nithin Kamath emphasised the critical need for health insurance in India, highlighting that many individuals are just one hospitalisation away from financial ruin. The post underscores the growing importance of having a robust health insurance plan amidst rising medical costs.

Kamath's message, shared alongside an informative graphic, illustrates the potential financial risks associated with unexpected medical expenses. “Most Indians are just 1 hospitalisation away from bankruptcy. A good health insurance plan is mandatory,” Kamath stated.

What is a health insurance?

Health insurance or medical insurance is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance, risk is shared among many individuals. By estimating the overall risk of health risk and health system expenses over the risk pool, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to provide the money to pay for the health care benefits specified in the insurance agreement. The benefit is administered by a central organisation, such as a government agency, private business, or not-for-profit entity.

Tips for selecting the right health insurance

Kamath offered several key tips for choosing a reliable health insurance provider through the graphic shared along with the tweet. He advised opting for companies with a track record of 5 to 10 years, noting that insurers with over a decade of experience are preferable. Additionally, he recommended evaluating insurers based on their claim settlement ratios, ideally between 80-90 percent over a three-year period.

The importance of network hospitals was another focal point in Kamath’s advice. He suggested selecting an insurer that includes 5,000 to 8,000 network hospitals to ensure broader access to medical facilities. Kamath also highlighted the significance of an incurred claim ratio between 55 to 75 per cent, and emphasised that insurance policies should avoid co-payments, room rent restrictions, and disease-wise sub-limits.

Public reaction and insights

The response to Kamath’s post was varied. One X user pointed out that many chronic diseases could be managed through lifestyle changes, potentially reducing overall health expenses. Another commenter criticized the complexity and hidden terms in health insurance policies, suggesting that these features are designed to minimize payouts. Hence, Kamath’s post aligns with growing concerns about the financial impact of health emergencies and the need for comprehensive insurance coverage.

In a recent post on X (formerly Twitter), Zerodha co-founder Nithin Kamath emphasised the critical need for health insurance in India, highlighting that many individuals are just one hospitalisation away from financial ruin.

In a recent post on X (formerly Twitter), Zerodha co-founder Nithin Kamath emphasised the critical need for health insurance in India, highlighting that many individuals are just one hospitalisation away from financial ruin. The post underscores the growing importance of having a robust health insurance plan amidst rising medical costs. Kamath's message, shared alongside an informative graphic, illustrates the potential financial risks associated with unexpected medical expenses. “Most Indians are just 1 hospitalisation away from bankruptcy. A good health insurance plan is mandatory,” Kamath stated. What is a health insurance? Health insurance or medical insurance is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance, risk is shared among many individuals. By estimating the overall risk of health risk and health system expenses over the risk pool, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to provide the money to pay for the health care benefits specified in the insurance agreement. The benefit is administered by a central organisation, such as a government agency, private business, or not-for-profit entity. Tips for selecting the right health insurance Kamath offered several key tips for choosing a reliable health insurance provider through the graphic shared along with the tweet. He advised opting for companies with a track record of 5 to 10 years, noting that insurers with over a decade of experience are preferable. Additionally, he recommended evaluating insurers based on their claim settlement ratios, ideally between 80-90 percent over a three-year period. The importance of network hospitals was another focal point in Kamath’s advice. He suggested selecting an insurer that includes 5,000 to 8,000 network hospitals to ensure broader access to medical facilities. Kamath also highlighted the significance of an incurred claim ratio between 55 to 75 per cent, and emphasised that insurance policies should avoid co-payments, room rent restrictions, and disease-wise sub-limits. Public reaction and insights The response to Kamath’s post was varied. One X user pointed out that many chronic diseases could be managed through lifestyle changes, potentially reducing overall health expenses. Another commenter criticized the complexity and hidden terms in health insurance policies, suggesting that these features are designed to minimize payouts. Hence, Kamath’s post aligns with growing concerns about the financial impact of health emergencies and the need for comprehensive insurance coverage.

Nithin Kamath urges Indians to focus on health Insurance: 'One Hospitalisation Away from Bankruptcy’

The Chinese city of Wuhan witnessed a protest staged by hundreds of retirees on Wednesday (February 15),&nbsp;in response to local resentment over changes to the public health insurance system, according to witnesses and pictures doing the rounds&nbsp;on social media.&nbsp;In China, where the government aggressively enforces rules pertaining to public order and resistance is swiftly put down, protests are an unusual occurrence. Despite that, China has seen multiple demonstrations of public anger&nbsp;including large protests in 2022&nbsp;against the strict COVID-19 rules, which have since been revoked.&nbsp;

<h2>Wuhan's retirees protest in front of&nbsp;Zhongshan Park</h2>

On Wednesday,&nbsp;a group&nbsp;of demonstrators protested&nbsp;in front of Wuhan's Zhongshan Park in the second such gathering in a week, as reported by AFP.&nbsp;

Videos being circulated on social media show security guards at&nbsp;the entrance to the popular Zhongshan Park, forming a human chain to prevent more people&nbsp;from entering.

Disclaimer: WION cannot independently verify the authenticity of photos and videos shared on social media.&nbsp;

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Live from <a href="https://twitter.com/hashtag/China?src=hash&amp;ref_src=twsrc%5Etfw">#China</a>’s Wuhan: many retirees in the central Chinese city gathered in a large park today to protest against the government’s move to cut subsidies for their health insurance. <a href="https://t.co/0s6mX7czWb">pic.twitter.com/0s6mX7czWb</a>
— William Yang (@WilliamYang120) <a href="https://twitter.com/WilliamYang120/status/1625702988907167745?ref_src=twsrc%5Etfw">February 15, 2023</a></blockquote>
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Since February 1, the monthly allowances given to retirees have decreased due to changes made to <a href="https://www.wionews.com/world/china-proposes-to-expand-railway-in-aksai-chin-region-561699">China's</a> vast public health insurance system.

A separate protest by hundreds of retirees took place last Wednesday in front of Wuhan's municipal hall in response to the reforms.

Also read |&nbsp;<a href="https://www.wionews.com/world/xinjiangs-governor-tuniyaz-cancels-controversial-trip-to-uk-562191">After row over Uyghur abuse, Xinjiang's Governor Tuniyaz cancels controversial UK trip</a>

Social media posts appeared to show local authorities meeting with some of those protesters for negotiations.

<h2>Reforms to China's public health insurance system&nbsp;</h2>

The insurance reforms, which have been progressively implemented since 2021, come as local government resources are under pressure as a result of several years of stringent and expensive zero-Covid policies.

Analysts claim that the indifference shown by the&nbsp;<a href="https://www.wionews.com/videos/gravitas-is-china-preparing-for-a-war-in-the-pacific-heres-proof-562069">officials in Wuhan</a>,&nbsp;has further aggravated the protests.&nbsp;

Also watch |&nbsp;Australia removes Chinese-made cameras as they pose security threat&nbsp;

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"Civil servants and public institution staff are still entitled to subsidised medical assistance insurance on top of the employee health insurance scheme," political risk consultancy firm SinoInsider said in a note to AFP.&nbsp;

"Senior and retired CCP (Chinese Communist Party) cadres have long had access to generous medical treatments at public expense and without having to pay for basic healthcare insurance.&nbsp;Local governments could compromise and meet protester demands early" rather than engage in a drawn-out dispute," the firm added.&nbsp;

(With inputs from agencies)

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The Chinese city of Wuhan witnessed a protest staged by hundreds of retirees on Wednesday (February 15), in response to local resentment over changes to the public health insurance system, according to witnesses and pictures doing the rounds on social media.

The Chinese city of Wuhan witnessed a protest staged by hundreds of retirees on Wednesday (February 15), in response to local resentment over changes to the public health insurance system, according to witnesses and pictures doing the rounds on social media. In China, where the government aggressively enforces rules pertaining to public order and resistance is swiftly put down, protests are an unusual occurrence. Despite that, China has seen multiple demonstrations of public anger including large protests in 2022 against the strict COVID-19 rules, which have since been revoked. Wuhan's retirees protest in front of Zhongshan Park On Wednesday, a group of demonstrators protested in front of Wuhan's Zhongshan Park in the second such gathering in a week, as reported by AFP. Videos being circulated on social media show security guards at the entrance to the popular Zhongshan Park, forming a human chain to prevent more people from entering. Disclaimer: WION cannot independently verify the authenticity of photos and videos shared on social media. Live from #China’s Wuhan: many retirees in the central Chinese city gathered in a large park today to protest against the government’s move to cut subsidies for their health insurance. pic.twitter.com/0s6mX7czWb — William Yang (@WilliamYang120) February 15, 2023 × Since February 1, the monthly allowances given to retirees have decreased due to changes made to China's vast public health insurance system. A separate protest by hundreds of retirees took place last Wednesday in front of Wuhan's municipal hall in response to the reforms. Also read | After row over Uyghur abuse, Xinjiang's Governor Tuniyaz cancels controversial UK trip Social media posts appeared to show local authorities meeting with some of those protesters for negotiations. Reforms to China's public health insurance system The insurance reforms, which have been progressively implemented since 2021, come as local government resources are under pressure as a result of several years of stringent and expensive zero-Covid policies. Analysts claim that the indifference shown by the officials in Wuhan, has further aggravated the protests. Also watch | Australia removes Chinese-made cameras as they pose security threat "Civil servants and public institution staff are still entitled to subsidised medical assistance insurance on top of the employee health insurance scheme," political risk consultancy firm SinoInsider said in a note to AFP. "Senior and retired CCP (Chinese Communist Party) cadres have long had access to generous medical treatments at public expense and without having to pay for basic healthcare insurance. Local governments could compromise and meet protester demands early" rather than engage in a drawn-out dispute," the firm added. (With inputs from agencies) WATCH WION LIVE HERE: You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

WATCH | Chinese retirees protest in Wuhan over reforms to public health insurance system

As COVID-19 second wave has ravaged India, the insurance industry is seeing a marked rise in the number of health insurance premiums. WION brings you the answers of all questions rising in the your mind regarding health insurance policy.

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