Indian Government Expands Health Insurance Scheme

Here is a brief overview on the plan and its key features.

The Background

The Indian government’s health insurance scheme, which began rolling out in 2008, started operating under the Ministry of Labour and Employment. Also, Indian government’s health insurance scheme was applauded the world over and appreciation poured in from the UN, ILO and the World Bank. In fact, the scheme was hailed as one of the world's best health insurance plans. However, the plan was later transferred to the Ministry of Health and Family Welfare in 2015.

In February 2016, in an official meeting of a group of ministers, it was decided that government’s health insurance scheme would be expanded to cover 50 crore people and 10 crore families. The expansion project was said to cost Rs 4,000-crore. If this plan comes into play, it will be a massive step towards offering universal health insurance. Initially, the scheme was visualized as the Universal Health Coverage programme by the UPA government, which the NDA later adopted as the National Health Assurance Mission.

What are the Features of the Health Insurance Scheme?

As per the scheme, it will not only list beneficiaries based on their income. In fact, as per the government, the new plan will also cover poor families based on the deprivation statistics as per the socio-economic caste survey (SECC). The minimum package would be worth Rs 50, 000 for each family. Also, there will be a provision for Rs 30,000 top-up for senior citizens.

Additionally, the scheme allows for a transportation costs worth Rs 250 in case of hospitalisation. Keeping in mind that the scheme is specially tailored for the poor, there is no limit on the number of people who can come under the coverage. The new plan is expected to roll out by financial year 2017-18.

What Makes this Health Plan So Unique?

Use of Information Technology

For the very first time, there is significant use of IT applications for a social scheme, especially on such a massive scale. The enrolled families are issued smart cards, which are biometric enabled and contain their fingerprints along with their photos. Also, the network of hospitals that are a part of this scheme are IT enabled and connected to the server in order to ensure that there is a seamless flow of data for better use of the services.

Cashless Insurance

Another key feature of this government’s health insurance scheme is that the insured people will receive cashless treatment at the network of hospitals upon displaying the smart card and following the verification process. The entire process is meant to be paperless as the claims are also sent online to the insurer and payments are made electronically.

Strong Monitoring System

The government’s health insurance scheme will have a strong monitoring and evaluation system in place. With a data management system in place, any transaction across India can be tracked easily and conveniently.

Disclaimer : *Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

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**All savings and online discounts are provided by insurers as per IRDAI approved insurance plans. #Tax Benefits are subject to changes in tax laws.

*₹1748/month is the starting price for a 1 crore health insurance for an 18-year-old male, with no pre-existing diseases. Discount on renewal premium is subject to the number of wellness points earned in the health insurance policy. For more details about the plans, please read the sale brochure carefully to get upto 100% discount on renewal premium.

*₹400/month is the starting price for ₹ 5 lakh Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases

*₹541/month is the starting price for ₹ 10 lakh Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases

*₹762/month is the starting price for ₹ 1 Crore Health insurance for a 30 year old male & 29 years old female, living in Delhi with no pre-existing diseases

*₹243/month(₹ 8/day) is the starting price for a 5 lakh health insurance for a 20-year-old male, non-smoker, living in Bengaluru with no pre-existing diseases

*₹2020/month is the starting price for ₹ 1 Cr Health insurance for a 50 year old male & 50 years old female, living in Bangalore with no pre-existing diseases rounded off to nearest 10.

*₹390/month (₹13 per day) is starting price for 1 cr. Health insurance for 25 years old male, with pre-existing diseases, residing from tier 1 city rounded off to the nearest 10.

*No medical tests are required unless requested by the insurer’s underwriter. In-case of pre-existing diseases relevant medical proof would be required as per the terms and condition of the policy opted.

*The values taken for effective cost calculation are indicative values and may change as per the selected plan.

*Coverage upto double the amount of Sum Insured is available on certain covers for a minimum plan of Rs. 5 Lakh on the first claim only to an individual of upto 45 years of age with no pre-existing diseases. The benefit is available with or without extra cost depending on the plan chosen.

*Coverage of pre-existing diseases is provided by insurer as per their underwriting policy.

*The scope of coverage may vary from plan to plan.

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The Indian Government to Expand Health Insurance Scheme to 50 Crore People