Mamata Banerjee Says GST Waiver on Health Insurance Will Cost Bengal ₹900 Crore a Year

West Bengal has taken a notable step towards making healthcare more affordable by advocating for a GST waiver on health insurance premiums. Chief Minister Mamata Banerjee announced that this bold move could cost the state ₹900 crore yearly but prioritises public welfare over fiscal revenue.

Health Insurance GST Waiver to Impact State Revenue

In a recent address in Bardhaman, CM Mamata Banerjee confirmed West Bengal’s estimated ₹900 crore annual loss from its push to remove the 18% GST imposed on health insurance premiums. Currently, states receive a 9% share of this GST. The proposal is part of a broader reform being considered in the upcoming GST Council meeting set for early September.

Boosting Healthcare Accessibility Across India

With health insurance currently not reaching even 20% of India’s population under private policies, this waiver aims to broaden access. By reducing premium costs, the reform could encourage more citizens, especially from lower-income groups, to opt for insurance coverage. The Centre is also considering exemptions on other essential goods.

Protection Against Potential Premium Increases

Banerjee cautioned that while the GST waiver may lower premium costs, the true benefit should reach citizens. She urged that insurance firms must not counteract the advantages by raising base tariffs post-waiver. The intention is to ease the burden on families, not to benefit providers.

Read More: 5 Health Insurance Policies Without 18% GST in India for Low-Income Families!

Swasthya Sathi Scheme and State-Level Efforts

The Chief Minister highlighted the state's Swasthya Sathi programme, offering free health coverage up to ₹5,00,000. This scheme, alongside the GST waiver, is intended to enhance inclusive health protections and reduce out-of-pocket expenses for medical emergencies.

Conclusion

West Bengal stands at the forefront of GST reform with its demand to exempt health insurance premiums, reflecting a people-first approach. Despite the projected ₹900 crore annual fiscal impact, the move could significantly increase insurance coverage and reduce financial stress on families seeking medical care.

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