Under the E.S.I. Act, 1948, what is the State Government's share in health care expenditure?

Appeared in: Raj. CHO -2024

Explanation

The ESI Act, 1948, outlines a specific cost-sharing agreement for medical benefits between the ESI Corporation and State Governments.
The State Government is responsible for contributing 1/8th of the expenditure on medical care provided to insured persons and their families within its jurisdiction.
The remaining, larger portion of 7/8th of the expenditure is borne by the ESI Corporation.
This financial model ensures joint responsibility for the provision of healthcare services under the scheme.

Option A: This fraction represents the share of expenditure on medical care that is borne by the ESI Corporation, not the State Government.
Option C: This fraction is not stipulated in the ESI Act's financial framework for cost-sharing between the state and the corporation.
Option D: This fraction is not part of the ESI cost-sharing model for medical expenditure.

Visual 1: Flowchart illustrating the financial contributions to the ESI scheme from employers, employees, the State Government, and the ESI Corporation.

Clinical Relevance

Nursing practice connection: Knowing Cost-sharing model under the ESI Act, 1948 helps nurses interpret findings accurately and avoid errors in routine assessment, medication administration, and patient teaching.
Understanding the funding mechanism helps nurses and healthcare administrators appreciate the financial structure supporting medical benefits for a large segment of the industrial workforce.
The consistent flow of funds from both the state and the central corporation is vital for maintaining the infrastructure, staffing, and supply chain of ESI hospitals and dispensaries.
What if? If a State Government defaults on its 1/8th contribution, it could lead to a shortage of funds, potentially affecting the quality and availability of medical services, supplies, and infrastructure in ESI facilities within that state.

How to Approach the Question

This is a factual recall question based on a specific provision of Indian labor law.
Identify the key terms in the question: 'E.S.I. Act, 1948' and 'State Government's share'.
Recall the financial structure of the ESI scheme, which involves contributions from multiple parties.
Focus specifically on the cost-sharing arrangement for medical care expenditure between the ESI Corporation and the State Government.
Remember the specific ratio: the state contributes the smaller share.
Match the correct fraction for the state's contribution (1/8) with the given options.

Concept Tested & Keywords

Concept Tested: Cost-sharing model under the ESI Act, 1948
Stem keywords: E.S.I. Act, 1948, State Government's share, health care expenditure
Lead-in keywords: what is
Negative lead-in flag: false

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Practise the full Raj. CHO -2024

Attempt every question from this paper in a timed mock, then review the full solution for each one.