Govt Plans Major Expansion Of Ayushman Bharat Health Insurance Scheme: Report

Ayushman Bharat health insurance scheme: The proposed expansion also includes increasing the annual insurance coverage from the current Rs 5 lakh to Rs 10 lakh per beneficiary

The central government is considering a major expansion of its Ayushman Bharat health insurance scheme in a bid to enhance healthcare accessibility. Citing sources news agency PTI reported that the plan aims to double the coverage over the next three years, starting with the inclusion of all individuals aged 70 and above.

The proposed expansion also includes increasing the annual insurance coverage from the current Rs 5 lakh to Rs 10 lakh per beneficiary. These enhancements, estimated to cost an additional Rs 12,076 crore annually according to the National Health Authority's projections, are expected to be announced during the upcoming Union Budget presentation later this month.

Launched to provide secondary and tertiary care hospitalisation coverage up to Rs 5 lakh per family annually, the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) was allocated Rs 7,200 crore in the interim Budget of 2024. The scheme currently benefits 12 crore families across the country.

President Droupadi Murmu recently announced that all individuals above 70 years of age will now be covered under the Ayushman Bharat Yojana, potentially extending coverage to an additional 4-5 crore beneficiaries. The plan to double the coverage amount aims to address inflationary pressures and provide financial relief for high-cost medical treatments such as transplants and cancer care.

A 2021 report by NITI Aayog titled "Health Insurance for India's Missing Middle" highlighted gaps in health insurance coverage, highlighting the need to extend coverage to about 30 per cent of the population currently without health insurance. The report identified the "missing middle"—predominantly self-employed individuals in rural areas and informal sector workers in urban settings — as a priority group for targeted healthcare financial protection.

With the Ayushman Bharat scheme and state government extensions already covering the bottom 50 per cent of the population, efforts are underway to bridge gaps and ensure more comprehensive healthcare access across all segments of society.