Funding: A group of 27 health policy specialists and medical professionals has urged the government to use the upcoming Union Budget 2026 to make a decisive push toward tax-funded universal health care. They have called for significantly higher public investment in government hospitals, warning that existing facilities are struggling to meet patient demand due to chronic underfunding and limited resources.

Demand for Tax-Funded Universal Health Coverage

The experts have proposed a model of universal health care financed primarily through taxation, ensuring that all citizens have access to a basic package of essential health services. According to the group, such a framework would reduce out-of-pocket spending and create a more equitable system, particularly for lower-income households that depend heavily on public hospitals.

They have recommended raising public health expenditure to between 2.5 and 5 percent of gross domestic product, arguing that current allocations fall short of what is needed to sustain quality care. Strengthening infrastructure and expanding the healthcare workforce were highlighted as immediate priorities.

Proposed Reforms to PMJAY Scheme

A key focus of the recommendations involves reforms to the Pradhan Mantri Jan Arogya Yojana (PMJAY). The experts stressed that the scheme should be broadened to cover outpatient services, which account for a large share of healthcare expenses for families. At present, PMJAY largely focuses on inpatient care, leaving routine consultations and diagnostics outside its scope.

They also called for more realistic package rates, timely reimbursements to hospitals, and the introduction of direct benefit transfers and structured copayment mechanisms. These changes, they argued, would improve participation by healthcare providers and ensure smoother delivery of services.

Call for GST Exemptions on Medical Essentials

In addition to financing reforms, the group urged the government to exempt lifesaving medical equipment, essential consumables, and all vaccines from goods and services tax. They said such measures would lower costs for hospitals and patients alike, improving access to critical treatments and preventive care.

Findings From Recent Global Health Research

The demands align with conclusions from a recent report by an international health commission, which described public sector healthcare as central to achieving universal health coverage. A related analysis of India’s progress pointed to deep-rooted structural challenges that continue to slow reform efforts.

Among the key issues identified were fragmented governance structures, weak coordination across different levels of care, and health services designed around institutions rather than patient needs. Persistent gaps in quality, equity, and continuity of care were cited as major obstacles to building a truly inclusive health system.

Structural Barriers to System Integration

The research emphasized that multiple healthcare programs operating independently can undermine accountability and disrupt continuity of care. It noted that healthcare delivery in India remains largely facility-based, with limited attention to patient journeys or long-term care requirements.

Weak referral systems and poor integration between primary, secondary, and tertiary care were also highlighted as factors that reduce efficiency and compromise patient outcomes. The findings suggested that policy announcements alone are insufficient unless backed by strong institutional capacity to implement reforms effectively.

Concerns Over Funding and Procurement Practices

Industry representatives echoed these concerns, pointing out that despite recent increases in health budget allocations, public hospitals often lack adequate operational funding. They argued that an emphasis on capacity building has sometimes come at the expense of day-to-day service delivery, leaving facilities overstretched.

Experts also recommended rethinking public procurement policies. Shifting the focus from the lowest upfront cost to long-term value for the healthcare system, they said, would lead to better outcomes for patients and more efficient use of public funds. Such an approach could help prevent escalating healthcare expenditures that have become difficult to manage in several developed economies.