Health: There is a gap in insurance coverage for middle-income groups in India. While the bottom two income quintiles are covered by the Pradhan Mantri Jan Arogya Yojana (PM-JAY), the top income quintile is covered by commercial insurance. This leaves people in the middle two income quintiles—where the population is not rich enough to afford commercial insurance, and not poor enough to be covered under government-sponsored health insurance schemes. It is therefore critical to ensure universal access to healthcare insurance, so that no one is excluded in terms of disease or category of persons.
In Budget 2021-22, the PM Atmanirbhar Swasth Bharat Yojana (PM-ANSBY) received an outlay of INR 64,180 crore over six years. It aims to develop capacities at various levels of the healthcare system, create new institutions, and strengthen existing ones.
Additionally, on the lines of the Developmental Financial Institution (DFI) which is being planned to stimulate investments in infrastructure, there is a need for a DFI specific to the health sector. This will increase healthcare access in Tier-2 and Tier-3 cities and also come in with technical assistance that ensures proper usage of funds.
Read this article that examines how public funds in healthcare have been allocated.