Bitter Bill along with bitter pill

By T R Vandana

WITH the levy of service tax imposed on all services provided by centrally air conditioned hospitals with minimum 25 beds and on diagnostic tests,patients will be given bitter bills along with bitter pills.

Air conditioning is not a luxury, it is bare necessity to prevent and treat diseases. ICU's, Operation theatre's. , blood banks cannot work without air-conditioning.Patients post-surgery cannot be admitted in a non ac ward.Controlled room temperature prevents various bacterial and viral infections in the hospital.

Health care costs has 4 major components

Drugs and supplies

Diagnostic tests

Hospital charges

Professional charges

With the levy of service tax on diagnostic tests and increase in another 5% increase in the hospital charges,health care is going to be very expensive.

Inthis budget, Doctors also come under service tax net.Our Noble doctors will pass on this to the patients.

So the individual has to bear this raise in service tax at all levels.

The worst affected will be those suffering from Chronic non communicable diseases like Diabetes, Hypertension and heart diseases .Routine blood sugar will now be costlier .

Patients suffering from chronic diseases like Cancer, Kidney diseases that need diagnosis frequently have to shed more money from their pocket now.

In India,large segment of people across the country cannot afford diagnostic tests. Doctors who are over cautious recommend expensive diagnostic tests. Sometimes diagnostic test results have little effect on treatment.

The most aggressively marketed Preventive tests like Master Health checkup , happy married Life will cost more now. Even before this service tax levy, what should be no more than Rs.500 to Rs.700, hospitals were charging Rs.3000 by adding unnecessary tests. With still hike in costs, people will hesitate to go for preventive diagnostics.

Apart from service tax, hospitals and labs pass on sales tax to the patients.

Sandwich generation who has to provide health care for him and his family as well as for their parents will be affected the most.

8 in 10 Indians donot have medical insurance or health cover of any kind. Most of them are under -covered. Senior citizens who are more than 69 years are not covered by any of the policies available now.

Health insurance covers all diagnostic tests like X-ray, MRI, blood tests etc. as long they are associated with the patients stay in the hospital for at least one night. Any diagnostics tests which have been prescribed in the OPD are generally not covered.

Increase in service tax on hospitals and levy of service tax on diagnostics will make check -ups and health care more expensive and in many cases inaccessible.

When the government can raise money by bringing back the black money stashed away in Switzerland and by auctioning 2G spectrum or through stake sale of public sector PSU's, why the government tax sick people who are already taxed by inflation tax(@20% food Inflation).

As the saying goes “God helps those help themselves”, it is high time for all the individuals to review their health insurance, disability policies, and critical illness policies and most importantly start exercising, eat healthy food and put the stress away and avoid stepping into the hospital.

(The author is T.R.Vandana, Certified Financial Planner)