Ayushman Bharat: A Comprehensive Overview of India’s Flagship Healthcare Scheme

Ayushman Bharat is a flagship scheme providing comprehensive healthcare through Health and Wellness Centres and Pradhan Mantri Jan Arogya Yojana, ensuring access and financial protection.

Ayushman Bharat, a flagship initiative of the Government of India, is a transformative program designed to achieve Universal Health Coverage (UHC). Launched as recommended by the National Health Policy 2017, Ayushman Bharat aims to address healthcare holistically, moving from a fragmented approach to a comprehensive, need-based system. This scheme is structured around two interconnected components: Health and Wellness Centres (HWCs) and Pradhan Mantri Jan Arogya Yojana (PM-JAY).

Ayushman Bharat: A Two-Pronged Approach

Ayushman Bharat adopts a continuum of care approach, focusing on both preventive and curative healthcare. It is comprised of two inter-related components:

  1. Health and Wellness Centres (HWCs):

    • Transformation of Existing Centers: The government aims to create 150,000 HWCs by transforming existing Sub Centres and Primary Health Centres.

    • Comprehensive Primary Health Care (CPHC): These centers deliver CPHC, bringing healthcare closer to people’s homes.

    • Expanded Services: HWCs offer a wide range of services, including maternal and child health services, non-communicable disease care, free essential drugs, and diagnostic services.

    • Health Promotion and Prevention: They emphasize health promotion and prevention, empowering individuals and communities to choose healthy behaviors and reduce the risk of chronic diseases.

  2. Pradhan Mantri Jan Arogya Yojana (PM-JAY):

    • World’s Largest Health Assurance Scheme: Launched on September 23, 2018, PM-JAY is the world’s largest health assurance scheme, providing a health cover of ₹5 lakh per family per year for secondary and tertiary care hospitalization.

    • Targeted Beneficiaries: The scheme covers over 12 crore poor and vulnerable families (approximately 55 crore beneficiaries), representing the bottom 40% of the Indian population.

    • Socio-Economic Caste Census (SECC) 2011: Beneficiaries are identified based on the deprivation and occupational criteria of the SECC 2011.

    • Inclusion of RSBY Families: PM-JAY also covers families previously covered under the Rashtriya Swasthya Bima Yojana (RSBY).

    • Government Funded: PM-JAY is fully funded by the government, with implementation costs shared between the Central and State Governments.

Key Features of PM-JAY:

  • Cashless Access: Provides cashless access to healthcare services at empanelled hospitals.

  • Financial Protection: Aims to mitigate catastrophic expenditure on medical treatment, which pushes nearly 6 crore Indians into poverty each year.

  • Pre and Post-Hospitalization Coverage: Covers up to 3 days of pre-hospitalization and 15 days of post-hospitalization expenses.

  • No Restrictions: No restrictions on family size, age, or gender.

  • Pre-Existing Conditions Covered: All pre-existing conditions are covered from day one.

  • Portability: Benefits are portable across the country, allowing beneficiaries to avail treatment at any empanelled hospital in India.

  • Comprehensive Coverage: Includes approximately 1,929 procedures covering all costs related to treatment.

  • Equitable Reimbursement: Public hospitals are reimbursed at par with private hospitals.

Benefit Cover Under PM-JAY:

PM-JAY provides a cashless cover of up to ₹5 lakh per eligible family per year for listed secondary and tertiary care conditions. The cover includes:

  • Medical examination, treatment, and consultation.

  • Pre-hospitalization expenses.

  • Medicines and medical consumables.

  • Non-intensive and intensive care services.

  • Diagnostic and laboratory investigations.

  • Medical implantation services.

  • Accommodation benefits.

  • Food services.

  • Treatment of complications.

  • Post-hospitalization follow-up care up to 15 days.

The ₹5 lakh cover is on a family floater basis, meaning it can be used by one or all family members. There is no cap on family size or age of members, and pre-existing diseases are covered from day one.

Why PM-JAY: A Background

  • Socio-Economic Disparities: Despite economic growth, a significant portion of India’s population lives in poverty, with limited access to affordable healthcare.

  • Triple Burden of Disease: India faces a “triple burden of disease,” with ongoing communicable diseases, a rising prevalence of non-communicable diseases (NCDs), and injuries.

  • Healthcare Supply Gap: The public healthcare system is overburdened, while the private sector is largely unregulated and concentrated in urban areas.

  • Underfunding of Public Health: Government expenditure on health has remained stagnant, leading to high out-of-pocket expenses.

  • Poverty: High out-of-pocket health expenditure is a leading cause of poverty in India, pushing millions into poverty each year.

  • Fragmented Health Insurance: Previous government-funded health insurance schemes were fragmented and lacked a link with primary healthcare.

Addressing Challenges Through Ayushman Bharat:

To address these challenges, the government adopted a two-pronged approach:

  • Health and Wellness Centres (HWCs): To focus on disease prevention and health promotion by upgrading existing primary healthcare infrastructure.

  • Pradhan Mantri Jan Arogya Yojana (PM-JAY): To provide financial protection for hospitalization needs and improve access to quality healthcare.

Coverage under PM-JAY:

  • Target Population: PM-JAY targets the bottom 40% of the population, based on the SECC 2011 data.

  • Rural Beneficiaries: Rural households are included based on seven deprivation criteria (D1 to D7) and automatic inclusion criteria.

  • Urban Beneficiaries: Urban households are categorized based on 11 occupational categories of workers.

  • State Flexibility: States can use their own databases for PM-JAY, ensuring all families eligible under SECC are covered.

Implementation Models:

States have the flexibility to choose their implementation model:

  • Assurance/Trust Model: The State Health Agency (SHA) directly implements the scheme, reimbursing healthcare providers, with the financial risk borne by the government.

  • Insurance Model: The SHA selects an insurance company to manage PM-JAY in the state, with the insurance company bearing the financial risk.

  • Mixed Model: States combine both assurance/trust and insurance models to suit their specific needs.

Financing of the Scheme:

  • PM-JAY is fully funded by the government, with costs shared between the Central and State Governments.

  • The Central Government determines a national ceiling amount per family.

  • The actual premium or ceiling amount is shared between the Central Government and States/UTs as per the extant directives.

Hospital Empanelment:

  • Hospitals are empanelled through a transparent online process.

  • A State Empanelment Committee (SEC) and a District Empanelment Committee (DEC) are set up for scrutiny and verification.

  • Empanelled hospitals must have a dedicated help desk manned by Pradhan Mantri Arogya Mitras (PMAMs).

  • Hospitals are incentivized to achieve higher quality standards through higher package rates for NABH accreditation and teaching institutions.

National Health Care Providers (NHCP):

  • Eminent tertiary and specialized care hospitals operating under the Ministry of Health and Family Welfare (MoHFW) are directly empanelled by the National Health Authority (NHA).

  • All NABH-accredited private hospitals in the National Capital Region (NCR) are also directly empanelled by NHA.

Expansion of Coverage and Convergence:

  • PM-JAY aims to converge various state-level health insurance schemes and provide national portability of care.

  • States have the flexibility to use their own databases, expand coverage, and revise package prices.

Ayushman Bharat, with its two components of HWCs and PM-JAY, represents a significant step towards achieving Universal Health Coverage in India. By focusing on both preventive and curative care, and by providing financial protection to vulnerable populations, the scheme aims to create a healthier and more equitable society.

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