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India launches the Ayushman Bharat Insurance Plan

India launches the Ayushman Bharat Insurance Plan

On September 23,  Ayushman Bharat-National Health Protection Scheme, now also known as Pradhan Mantri Jan Arogya Yojana (Prime Minister’s Health Plan for the People) or PM-JAY, was launched in India. The world’s largest healthcare scheme covers 450 districts (counties) and seeks to accelerate India’s progress toward  Universal Health Coverage and Sustainable Development.

Ayushman Bharat will provide healthcare facilities to  500 million of the poorest citizens. The plan will be funded on a 60:40 ratio by the federal and state governments, and covers medical and hospitalization expenses for almost all secondary care and most tertiary care procedures. PM-JAY will provide cashless and paperless access to services to its beneficiaries; it has defined 1,354 medical packages covering surgery, medical and day care treatments, medicines, diagnostics, and transport.

85 percent of rural families and 60 per cent of urban families have been identified so far. All the beneficiaries will be provided with letters carrying QR codes, and a demographic authentication will be conducted to verify a person’s eligibility to avail the benefits of the program. A Gold Card means that family and individual verification of a person has been completed with biometric data. Currently, 32 states and union territories in the country are part of the Ayushman Bharat program. 32,000 hospitals applied for empanellment. The program will be administered  via corporate medical insurance companies. For example Bajaj Allianz General Insurance will provide health insurance in India’s northern state of Jammu and Kashmir.

The government claims that within the first ten days of its launch this  program benefited 23,000 patients and medical insurance claims of $5 million have been settled. Ayushman Bharat is a work in progress, and far from fruition. The corporate health care sector has expressed muted support so far. “Some of the conditions, such as an intensive care unit back-up, and round-the-clock presence of a medical officer, required by state governments to empanel private hospitals are not feasible. Moreover, the rates for some treatment packages are too low and not viable,” said Dr. A. P. Setia, a former official of the Indian Medical Association.

Last updated: December 26th, 2025

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