Tax cuts are a relief but won't go far, Pg14

Key Highlights:

• The Union Finance Minister announced a cut in basic custom duty for 17 medicines, primarily anticancer agents, to make targeted cancer therapies more accessible.
• The duty cuts may result in savings of approximately Rs 20,000-Rs 25,000 per month for some high-cost drugs like Venetoclax.
• High costs of newer cancer immunotherapies and targeted therapies remain a challenge, with many health insurance policies offering limited coverage due to sub-limits and caps.
• Only about 20% of the country is covered by social health schemes, with another 50% under Ayushman Bharat, leaving around 30% without any health cover.

Detailed Insights:

• The government has been progressively reducing taxes on cancer therapies, including custom duty exemptions for 37 medicines and taxes removed on 36 therapies for cancer and rare diseases.
• Despite the tax cuts, families still face significant financial strain, as the savings are marginal compared to the overall treatment costs, which can reach Rs 3 lakh per month.
• Government relief funds are often slow and uncertain, leaving patients to pay out-of-pocket while waiting for assistance, which can take 3-6 months.
• Many modern cancer treatments like immunotherapy are only partially covered by insurance, often capped at 50% of the sum insured or a fixed amount, despite costing Rs 2-Rs 6 lakh per cycle.
• The reduction in drug prices can help stretch insurance coverage, allowing patients to receive treatment for longer durations, particularly benefiting those requiring high-dose therapies.
• Once patents expire, the drugs are expected to become dramatically cheaper with the entry of generic manufacturers, potentially improving treatment adherence and survival rates.

Key Concepts Involved:

• Targeted Therapy: Cancer treatment that uses drugs to specifically identify and attack cancer cells without harming normal cells.
• Immunotherapy: Treatment that uses the body's own immune system to fight cancer.
• Ayushman Bharat: A national health scheme providing financial protection to poor and vulnerable families for secondary and tertiary care hospitalization.