International Journal For Multidisciplinary Research

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A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

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The Impact of Healthcare Subsidies on Health Outcomes and Labor Productivity in Low-Income Populations

Author(s) Mr. Devaditya Joshi
Country India
Abstract In this paper, we will describe how healthcare subsidy can be used to enhance health outcomes and labor productivity of the low-income population. The paper relies on conceptual frameworks such as Grossman Health Capital Model, the impact of subsidies on financial access to care, improving morbidity and mortality, and increasing the participation of the workforce. Based on international examples, such as the Affordable Care Act of the United States, the National Health Insurance Scheme of Ghana, the Rashtriya Swasthya Bima Yojana in India, the Universal Coverage Scheme of Thailand, and the Community-Based Health Insurance of Rwanda, the analysis identifies positive effects of subsidies on the use of preventive care, minimized catastrophic health spending and greater labour market efficiency. It has been proven through empirical evidence that increased access to healthcare not only increases individual well-being but also decreases absenteeism, increases productivity and contributes to economic growth. Inequality in distribution, red tape and failure to access vulnerable populations, nonetheless, remain a challenge. Recommendations on policy include consolidation between health and labour policies, streamlining of enrolment, progressive financing and enhancement of monitoring and evaluation. The report further argues that healthcare subsidies could be an important tool in promoting health equity, workforce productivity, and sustainable economic growth when used appropriately in a low-income environment.
Published In Volume 7, Issue 5, September-October 2025
Published On 2025-09-05
DOI https://doi.org/10.36948/ijfmr.2025.v07i05.55247

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