Crowdfunding for Medical Treatment in India: Is It Worth It?

The healthcare system in India is grappling with high treatment costs and limited insurance coverage. This has paved the way for medical crowdfunding, where individuals seek financial support from the public to fund their treatments. Platforms like Ketto, Milaap, Impact Guru, and others have emerged as life-saving solutions for many. But with varying fees and success rates, is medical crowdfunding really worth the effort? Here’s a detailed analysis of how it works, the fees involved, and the pros and cons.

How Medical Crowdfunding Works

Medical crowdfunding involves sharing a patient’s story on a platform, with the goal of raising funds from donors across the globe. Most platforms are simple to use—users create a campaign, share it on social media, and wait for donations. It’s especially popular in India for treatments like cancer, organ transplants, and critical surgeries, which can run into lakhs of rupees, well beyond what government schemes like Ayushman Bharat cover.

Platform Fees and Costs

Different crowdfunding platforms have varying fee structures:

• Ketto: Charges a platform fee of around 5% on the funds raised, alongside payment gateway charges. There are options for donors to cover these fees.
• Impact Guru: This platform takes 5% of the total raised amount.
• Milaap: Known for charging lower platform fees (around 5-8%) for medical campaigns, though the exact amount can vary.
• Crowdera: Unique for its no-fee model, Crowdera relies on corporate partnerships and CSR donations to fund the platform’s operations.

Tax Benefits

Some platforms, such as GiveIndia and Ketto, offer tax exemptions for Indian donors under Section 80G of the Income Tax Act. This provides an additional incentive for people to contribute to medical fundraisers.

Pros of Medical Crowdfunding

1. Quick Access to Funds: Crowdfunding can provide funds rapidly, essential during medical emergencies when time is of the essence.
2. Support from a Global Audience: Crowdfunding platforms make it easy for friends, family, and even strangers from around the world to contribute.
3. Low Entry Barriers: Starting a fundraiser is often free or requires minimal upfront costs.
4. Emotional Support: Beyond financial aid, crowdfunding platforms allow donors to leave messages of support, helping boost the morale of patients and families.
5. Transparency: Contributors can track where their donations go, offering a layer of trust and accountability.

Cons of Medical Crowdfunding

1. Platform Fees: Despite the noble cause, most platforms charge significant fees. A 5-8% fee might seem small, but when raising large sums (₹10 lakhs or more), this can amount to a substantial cost.
2. Success Not Guaranteed: Not all campaigns reach their goal. Success depends heavily on the ability to market the campaign, and there’s no guarantee of full funding.
3. Exploitation Risk: There are occasional cases of fraudulent campaigns, where the money raised does not go toward the advertised cause.
4. Emotional Toll: Sharing personal stories online can be emotionally taxing for families, and they may be subject to public scrutiny or judgment.
5. Lack of Long-Term Solution: Crowdfunding is often a one-time solution. It does not address the underlying systemic issues that make healthcare inaccessible to many in India.

Is It Worth It?

Medical crowdfunding can be a lifeline in emergencies, especially when traditional means of financing (insurance, savings, loans) fall short. However, the high platform fees, uncertainty of success, and the emotional burden involved may make it a less-than-ideal solution for every patient. Additionally, it is not a sustainable or long-term replacement for broader healthcare reform.

For families facing immediate, large medical bills, crowdfunding platforms are certainly worth considering—though it’s important to weigh the potential costs and challenges before starting a campaign.