Centre considers doubling AB-PMJAY beneficiaries, insurance amounts in 3 years
The Indian government is contemplating a significant expansion of its flagship Ayushman Bharat health insurance scheme, AB-PMJAY, over the next three years. The proposed changes include doubling the beneficiary base and increasing the insurance coverage to ₹10 lakh per year. These changes, if necessitated, would entail an additional annual expenditure of ₹12,076 crore for the exchequer, as per estimates by the National Health Authority, official sources told PTI.
Doubling beneficiary base and coverage amount under consideration
The government is in talks to double the beneficiary base under AB-PMJAY, aiming to cover over two-thirds of India's population with health insurance. "Medical expenditure is one of the biggest reasons that push families to indebtedness," official sources stated. These proposals are likely to be announced in the Union Budget later this month.
Interim Budget 2024 increases allocation for AB-PMJAY
In the interim Budget 2024, the government increased funding for AB-PMJAY, which provides a health cover of ₹5 lakh per family per year for secondary and tertiary care hospitalization to 12 crore families. The allocation was raised to ₹7,200 crore while ₹646 crore was assigned for the Ayushman Bharat Health Infrastructure Mission (PM-ABHIM). President Droupadi Murmu announced in her Parliament address that all individuals above 70 years of age will also be covered under Ayushman Bharat Yojana.
Proposed changes aim to cater for inflation, high-cost treatments
The proposed changes are expected to add around 40 million to 50 million more beneficiaries under the scheme. The limit of ₹5 lakh for AB-PMJAY was set in 2018 and doubling this amount aims to account for inflation and provide relief for high-cost treatments such as transplants and cancer. This expansion is part of the government's efforts to reduce the financial burden on families due to medical expenses.
NITI Aayog report highlights gaps in health insurance coverage
A report by NITI Aayog titled 'Health Insurance for India's Missing Middle' published in October 2021, suggested extending the scheme. The report revealed that about 30% of the population lacks health insurance, underscoring gaps in health insurance coverage across India. It also emphasized the need for designing a low-cost comprehensive health insurance product for the 'missing middle,' a term used to describe the uncovered population, predominantly self-employed individuals in rural areas and various occupations in urban areas.
