Private Hospitals Contemplate Treatment Halt for Karunya Arogya Suraksha Padhathi (KASP) Patients

The KASP, which went into effect in 2020, is a combination of many federal and state health insurance programmes. It provides yearly health coverage for secondary and tertiary hospitalization of up to Rs 5 lakh per household. According to the State Health Agency, Kerala, it serves over 64 lakh beneficiaries, or 42 lakh impoverished and vulnerable families, who make up the lowest 40% of the state's population. 

The government's reluctance to switch to HBP 2.2, which provides improved benefits to beneficiaries and empaneled hospitals, particularly in terms of procedures and package rates, is another concern for KPHA. Hussain Koya Thangal told The New Indian Express," We have no option but to withdraw from the scheme. It is straining our resources, and small hospitals, particularly in rural areas, are finding it difficult to survive." He further added that Kerala is still following the HBP 2.0 rules, which is not in favour of hospitals or beneficiaries. Significant improvements have been made to the new version, which should soon be implemented in Kerala.

Previously KPHA filed a contempt petition regarding the implementation of HBP's new updated version, the government issued an order on November 15 and clarifies that the government would not implement the revised HBP. The order stated that the state's current financial position precluded the implementation of the amended rates and that the issue may be revisited when Central aid is increased. The existing rates, the association argues, are not reflective of the complexities and expenses associated with healthcare delivery, leading to financial problems for private healthcare facilities participating in the KASP initiative, reports the Daily.