Health insurance plans act as a financial security that protects individuals from unpredictable or extensive medical expenses. However, only 20% of Indian citizens have satisfactory health insurance coverage. Keeping an eye on this, the Government of India has aimed to improve the statistics in a positive way by undertaking several healthcare initiatives for the well-being of people. 

In this article, you will discover the different government measures for providing health insurance schemes to Indian citizens.

List of Government Health Insurance Plans

The following are the best government health insurance plans available for Indian citizens:

Rashtriya Swasthya Bima Yojana (RSBY)

Rashtriya Swasthya Bima Yojana is a health insurance scheme run by the Indian government for unrecognised sector workers under below poverty line (BPL) category. As per this scheme, individuals can get an annual coverage of up to Rs. 30,000 per family for hospitalisation, including pre and post-hospitalisation costs. Additionally, the government offers subsidies to the scheme's premium to make it more affordable.

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)

AB-PMJAY refers to a national public health insurance programme of the Indian government that provides up to Rs. 5 lakhs annual health coverage for low-income earners. This scheme offers free healthcare services to over 40% of the nation’s population. Moreover, it covers the hospitalisation expenses for serious illnesses like heart disease, cancer, kidney failure etc.

Employee’s State Insurance (ESI) Scheme

The ESI scheme is a comprehensive national healthcare programme for all Indian workers and their families, offering both social security and socioeconomic protection. This scheme is applicable to factories and other establishments wherein at least 10 people (20 in some states) work together. The insurance coverage starts from the first day of their insurable employment.

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

PMSBY is a government-run accident insurance scheme, offering an annual insurance coverage of Rs. 2 lakhs to individuals aged between 18 to 70. This is a one-year personal accident cover, renewable from year to year. In addition, this scheme also provides an accident coverage of up to Rs. 1 lakh in case of accidental disability and death.

Universal Health Insurance Scheme (UHIS)

Universal Health Insurance Scheme aims to cover the medical expenditure of below-poverty-line (BPL) families. This also provides coverage for deaths due to an accident. The key proponents of this scheme are four public sector general insurance companies committed to enhancing healthcare for the underprivileged, particularly economically disadvantaged Indian citizens.

Central Government Health Scheme (CGHS)

Central Government Health Scheme is a government-backed health insurance plan that offers coverage to government employees and their dependents. This scheme aims to cover hospitalisation expenses, including pre and post-hospitalisation costs. Additionally, the scheme provides coverage for medical bills, diagnostic tests and medical tests.

Aam Aadmi Bima Yojana (AABY)

Aam Aadmi Bima Yojana is one of the recent medical insurance schemes, launched in October 2007. This scheme primarily focuses on all Indian citizens living in upcountry and rural areas, including landless individuals living both in urban and rural areas. It is applicable to individuals aged between 18-59 years. Furthermore, this offers scholarships to deserving children.

Do Government Health Schemes Provide Enough Sum Insured?

Both government and private health schemes have unique benefits and features. You should choose one depending on your circumstances and requirements. However, you should ask yourself a question before going for any plan: is this scheme going to provide enough sum insured for me or my family?

Depending on your requirements government schemes can often fall short due to the spiralling healthcare costs and its comparatively smaller sum insured. Therefore, you should keep the following things in mind before settling for a health scheme:

1. Ensure Adequate Coverage

By opting for the right sum insured you can make sure that you and your family get sufficient healthcare coverage. If you opt for a scheme with a lower sum insured you may have to pay out of your pocket when it is an emergency.

2. Shield Your Savings

To keep your savings protected you have to have a health insurance plan that offers the right sum insured. During any medical emergency, this sum insured will cover all the expenses and you will not have to touch what you have in your savings. For more options, visit https://www.acko.com/health-insurance/.

3. Ensure Peace of Mind

If you are investing in a health plan you as well ensure your peace of mind. A policy with an adequate sum insured and appropriate coverage will make sure you will not have to worry about arranging money. This will help you lead a stress-free life without the fear of financial burden.

The Bottom Line

Government health insurance plans play a crucial role in ensuring affordability and healthcare accessibility for its people. These plans promote awareness, preventive care, early diagnosis and timely treatment. Though their coverage may not be as comprehensive as private insurance plans, these health schemes have positively impacted millions of lives, offering affordable coverage for critical illnesses and hospitalisation.