National Commission for Controlling Medical Inflation Bill Introduced in Parliament

New Delhi: Amid the increasing cost of medical treatment in India, the National Commission for Controlling Medical Inflation Bill has been recently introduced in Rajya Sabha.

The bill, introduced by CPI Rajya Sabha MP P. Santhosh Kumar, wants to set up a commission that will be the regulating authority to monitor and standardise the rising costs of medicines, medical diagnostic tests, and pathological examinations.

As per the bill that has been named as 'The National Commission for Controlling Medical Inflation Act, 2022', the commission will have a Chairperson, Deputy Chairperson and five members appointed by the President of India.

Further, the bill proposes that the commission will also have the powers of a civil court to adjudicate matters concerning the examination of witnesses and documents, receive evidence on affidavits, and requisite any public record or copy from any court or office.

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As per the latest media report by The Hindu, the bill has expressed its concern over the rising expenses for medical treatment. It has pointed out how every year, the cost of healthcare expenses are increasing at a very fast rate and hospitalisation has gone out of reach for even the middle class.

"There is an accelerating rate of increase in the price of medicines, pathological diagnosis, hospitalisation and everything related to healthcare," stated the bill.

Mr. Kumar added, "Medical inflation is a reality. We do not have any standard rates for tests and medicines. At one hospital, a test can cost Rs. 50 and at another it can cost Rs. 100."

According to the economic survey of 2017-2018, the cost of medical diagnostic tests varies across the cities. Among the Asian countries, India witnessed the highest medical inflation rate of 14 percent last year. 

In this regard, the official data of the Ministry of Statistics and Programme Implementation revealed that the cost of medical treatment in India increased by 7.21 percent in April 2022.

Records state that back in 2017, 55 million Indians were pushed into poverty because of the high out-of-pocket (OOP) health expenses. This is more than the population of three countries including South Korea, Spain and Kenya.

Currently, the OOP cost for an individual for healthcare is 63 percent in India. It reflects that no matter if an individual has private health insurance or if they visit a government healthcare facility for treatment, they will be liable to pay a significant amount from their own pocket to avail treatment.

The recently introduced National Commission for Controlling Medical Inflation Bill calls for constituting a Commission for monitoring the inflation rate. In fact, the bill proposes that the Government shall consult the concerned commission to discuss all the policies related to the control and monitoring of medical inflation.

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