New health plan will save Rs 700 cr a year: Health Minister

Vijayawada: Medical and health minister Y Satya Kumar Yadav on Sunday said the state government will save nearly Rs 700 crore a year through the free universal health policy that covers every family in the State.

Welcoming the recent GST reforms, health minister said the removal of the 18 per cent tax on health insurance premiums has strengthened healthcare reforms and eased financial pressure on families.

“The savings from this reform will allow us to provide more benefits under the universal health policy,” he told reporters.

The minister added that the new tax structure will bring down the cost of medicines and equipment used in the treatment of cancer and 33 other rare diseases. Prices of vaccines, HIV, hepatitis and TB kits, and diagnostic equipment have also fallen, he noted.

“This will provide real financial relief to the people,” he said.

He thanked the Centre for reducing tax slabs and the State Assembly for passing a resolution welcoming the move.

He described the Centre’s decision as bold, saying it will lower costs not only for patients but also for small traders and the common man.