Budget 2015: Centre likely to raise Rashtriya Swasthya Bima Yojana cover to Rs 50,000

NEW DELHI: The government is planning to augment cashless insurance coverage under the Rashtriya Swasthya Bima Yojana (RSBY) from the existing Rs 30,000 to Rs 50,000 for a beneficiary. The proposal may also come as part of the upcoming Budget 2015-16, official sources said.
The move is aimed at providing a better insurance cover to make healthcare facilities accessible to the poor. The expenditure on healthcare mainly on hospitalization has increased significantly over the past decade. Estimates show healthcare expenditure as part of average household is likely to rise further in next five years. According to a recent report by PriceWaterhouseCoopers, expenditure on medical care and health care services is seen increasing to 7% of total household spend by 2021 from 5% in 2010. Despite increased insurance penetration in recent years, 70% of healthcare costs are still borne by patients themselves.

India has the lowest total and government per capita spending among BRIC nations.



To address this issue, the government is working towards a universal health insurance scheme. However, restructuring of RSBY is the first step in the direction, a health ministry official said. The government has formed a inter-ministerial committee for smooth transition of RSBY to health ministry from labour ministry. The scheme is likely to be shifted to health ministry by April, the official said.

The health ministry is planning to expand the portfolio of services under the scheme and is also in talks with several states for the same. It is also looking to start out-patient departments (OPD) under the scheme in government set ups, the official said.

RSBY, launched by the labour ministry in 2008, provides health insurance coverage for below poverty line (BPL) families. Currently, beneficiaries under the scheme are entitled to coverage of up to Rs 30,000 for most of the diseases that require hospitalization. Coverage extends to five members of the family, which includes the head of the family, the spouse, and up to three dependents. Beneficiaries need to pay only Rs 30 as registration fee while the Centre and state governments pay the premium. Studies depict the RSBY scheme as being instrumental in significantly reducing out-of-pocket expenditure on health among the BPL population covered under the scheme.

According to the official, initially the identification, card issuance and fixing of beneficiaries will remain with labour ministry, while health ministry will be involved in operating the scheme, providing insurance cover etc.