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Budget 2020: Ayushman Bharat to be expanded, health sector gets Rs 69,000 crore allocation

The expansion of Ayushman Bharat scheme will see setting up and development of more hospitals in Tier-II, Tier-III cities under the PPP model.

February 01, 2020 / 05:19 PM IST

The Centre on February 1, 2020 allocated Rs 69,000 crore for 2020-21 to the health sector and stressed on expanding Pradhan Mantri-Ayushman Bharat Scheme (PMABY), billed as the world’s largest government-funded health assurance scheme to more aspirational districts.

Out of the total allocation, a sum of Rs 6,000 crore has been allocated to PM Jan Aarogya Yojana.

The expansion of Ayushman Bharat scheme will see setting up and development of more hospitals in Tier-II, Tier-III cities under the PPP model, which, the FM said will be funded from the proceeds from taxes on medical devices.

The government will provide viability gap funding for the process.

The Ayushman Bharat scheme, launched in 2018, provides health insurance cover to almost 40 percent of India’s population, benefitting 100 million families which aims to provide a coverage of Rs 5 lakh per family annually, benefiting more than 10.74 crore poor families or over 50 crore people for secondary and tertiary care hospitalisation through a network of empanelled health care providers.


As on November 25, 2019, as many as 114 million e-cards have been issued under PMABY.

It subsumes the current schemes—the Rashtriya Swasthya Bima Yojana and the Senior Citizen Health Insurance Scheme, and the cover will take care of almost all secondary care and most of tertiary care procedures.

To ensure that nobody is left out (especially women, children and elderly) there is no cap on family size and age in the scheme. The benefit cover will also include pre and post-hospitalisation expenses, and covers all pre-existing conditions will be covered from day one of the policy.

Benefits of the scheme are portable across the country and a beneficiary covered under the scheme will be allowed to take cashless benefits from any public/private empanelled hospitals across the country.

The total number of hospitals covered by this scheme are both government hospitals and private hospitals presently numbering 16,000 and increasing steadily. More than 50 percent of the implementing hospitals are in the private sector.

Under Ayushman Bharat, the government had also initiated a programme to set up 1,50,000 health and wellness centres (HWCs) by 2022.

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Moneycontrol News
first published: Feb 1, 2020 11:30 am
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