Health Insurance Scheme for Low Income Groups-VHS (India)

Background

Voluntary Health Services (VHS), a registered non-profit organisation came into existence in Chennai in 1958 by Dr. K.S. Sanjivi, who is popularly known as the father of primary health care movement in India. Its prime areas of focus include provision of preventive care, promoting family as the unit of care and enhancing community participation.

Origin

VHS operates 14 Mini Health Centres covering a population of 1 lakh people in Kancheempuram District of Tamil Nadu. The centres provide preventive and curative health care facilities. VHS introduced the Medical Aid Plan in these centres as well as at VHS Hospital on the lines of voluntary health insurance scheme.

Characteristics and Functions

The Medical Aid Plan was developed on the concept of prepayment by clients in anticipation of their needs for health services. The premium is fixed according to the monthly income of the household. The following membership was fixed on the basis of monthly income of the clients. Membership benefits included free annual health check-up for household members and out-patient and in-patient care at concessionary rates

The VHS was the first non-governmental organization to introduce the concept of prepayment. This was done by registering every family on payment of a nominal subscription graded on the basis of income. The idea of even a nominal prepayment when the family is apparently well is yet to appeal to the average Indian citizen. “We will meet the contingency when it occurs, why bother now” is the philosophy of an average Indian. But in view of the changes in life styles and technological development in the field of medicine making medical treatment very expensive more and more people are now inclined to participate in health insurance.