The Modi government is considering a significant announcement in Budget 2024 that could benefit approximately 17 crore people across the country.
Discussions are underway to increase the coverage of free medical treatment from Rs 5 lakh to Rs 10 lakh for eligible poor families.
Current and Proposed Coverage
Currently, under the Ayushman Bharat scheme, around 12 crore families receive free medical treatment up to Rs 5 lakh in both government and private hospitals.
Recognizing the escalating costs of healthcare, the government is proposing to double this coverage to Rs 10 lakh.
Financial Implications
Doubling the coverage under the Ayushman Bharat scheme is expected to increase annual expenses substantially.
The National Health Authority estimates an additional burden of Rs 12,076 crore annually, in addition to the Rs 7,200 crore already allocated in the interim budget.
Expanded Beneficiary Base
With the inclusion of all citizens above 70 years of age, an additional 4 to 5 crore people are expected to benefit from the scheme.
This would bring the total number of beneficiaries under Ayushman Bharat to approximately 17 crores.
Rationale for Expansion
The proposal to increase coverage stems from rising healthcare costs and inflation. The current scheme covers treatments like cancer
and transplants, which are expensive, necessitating a broader coverage to alleviate financial burdens on families.
This proposed expansion aligns with recommendations from NITI Aayog’s ‘Health Insurance for India’s Missing Middle’ report in 2021, aimed at extending health insurance coverage to vulnerable families across the country.
