Friday, April 13, 2012

Electoral dose: Free medicines for all

Electoral dose: Free medicines for all


With an eye on the 2014 general election, UPA-II is preparing to launch a mega health scheme which will facilitate the distribution of free medicines to everyone in the country, especially those living in rural areas, who rely heavily on public health services. Expected to be launched next year, the scheme is set to be the second biggest health scheme introduced by the government after UPA-1 implemented the National Rural Guarantee Programme.
Sources said prime minister Manmohan Singh is closely monitoring the nitty-gritty of the scheme. The prime minister’s office is working in close tandem with the Planning Commission and the health ministry to ensure the successful implementation of the scheme which will help the Congress-led coalition at the Centre to woo rural as well as urban poor.
“The need for implementing such a scheme was felt for long. We were working out the total financial burden which the Centre would have to incur. The share of the state governments was also calculated. The implementation of the scheme seems feasible now and so we have made the recommendations,” an official from the Planning Commission told DNA.
The Planning Commission has prepared the scheme’s blueprint in close consultation with a panel of 15 acclaimed health experts and activists from various states. According to the initial plan, the government will have to shell out approximately Rs30,000 crore for five years. The central government will pay 85% of the total project cost while the remaining expenses will be borne by the state governments.
The scheme is likely to be launched with much political fanfare in 2013 under the National Rural Health Mission (NRHM) and the National Urban Health Mission (NUHM).

To bring the cost of medicines down for the government, state governments will be asked to set up medical supply corporations (MSCs) which will buy essential drugs in bulk through a competitive tendering process. The government wants MSCs to be autonomous bodies, responsible for maintaining transparency in the drug procurement process.
“We will follow the Tamil Nadu model which is in place for 15 years. The states will have to set up cold storage facilities to store medicines purchased in bulk,” the official said. Bulk procurement of generic medicines will be done under International Non-proprietary Names only.
The finance minister this year allocated Rs20,822 crore for the NRHM. However, with the new free-medicine-for-all-scheme, NRHM will get a fresh lease of life and a five-year extension. The allocation for the proposed scheme will be over and above the current allocations for NRHM and NUHM.
At present, the government spends around 1.1% of its GDP on providing health services to people. Once the new scheme is implemented, the share will go up to 2.5%. The government initially decided to give the scheme the “right” status such as the right to education. However, considering some loopholes in the system it decided otherwise.

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