Budget 2024: Ayushman Bharat Coverage Likely To Be Doubled, Insurance Limits May Be Hiked

In an effort to strengthen the healthcare accessibility, Indian government is reportedly planning to expand the beneficiary base of its flahship Ayushman Bharat health insurance scheme in the next 3-years beginning with citizens above 70-years to be brought under its sphere. The government may also hike the insurance coverage to Rs 10 lakh per year from the current Rs 5 lakh and likely to make the announcement in the upcoming Union Budget 2024 to be presented on July 23, according to PTI report. The proposal will reportedly necessitate an extra expenditure of approximately Rs 12,076 crore per annum to the exchequer according to estimates given by National Health Authority, added the PTI report.

Sourced divulged PTI, "Discussions are happening to double the beneficiary base under the AB-PMJAY over the next three years, which, if implemented, will cover more than two-third population of the country with health cover. Deliberations are also underway over finalising a proposal to double the limit of the coverage amount from the existing Rs 5 lakh to Rs 10 lakh."

Eatlier, in the Interim Budget 2024, Central Government hiked allocation for the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), that offers health cover of Rs 5 lakh per family every year for secondary and tertiary care hospitalization to 12 crore families, to Rs 7,200 crore. Also, Centre allocated Rs 646 crore for the Ayushman Bharat Health Infrastructure Mission (PM-ABHIM).

Meanwhile, NITI Aayog, in its report 'Health Insurance for India's Missing Middle' published in October 2021, recommended extending the scheme saying that approximately 30% of the population is devoid of health insurance. The AB-PMJAY flagship scheme towards Universal Health Coverage, and state government extension schemes offers complete hospitalisation cover to the bottom 50% of the population. Nearly 20% of the population is covered via social health insurance, and private voluntary health insurance primarily designed for high-income groups.

Recently, President Droupadi Murmu declared that all individuals over 70 years of age will now be covered under the Ayushman Bharat Yojana, significantly extending coverage to an additional 4-5 crore beneficiaries. The move to double the coverage amount seeks to address inflationary pressures and offer necessary financial aid for high-cost medical treatments like transplants and cancer care.