ESIC hikes spending per insured person from Rs 2,150 to Rs 3,000

To improve quality of services at state-run health facilities, Employees State Insurance Corp has decided to increase its share of expenditure from Rs 2,150 per insured person to Rs 3,000, which would result in additional Rs 1,810 crore with states.

Besides, Employees State Insurance Corp (ESIC) has also given a window of three months till March 31, 2017 to workers to enroll themselves for its health insurance scheme which also covers their dependent family member.

At present, there are 2.13 crore insured persons under ESI scheme. The number of beneficiaries covered under the scheme is now 8.28 crore.

“In order to improve the medical services under state-run ESI facilities, ESIC has today approved increase in per capita ceiling of sharing expenditure with states from existing Rs 2150 to Rs 3000,” said ESIC in a statement issued after its 170th meeting chaired by Labour Minister Bandaru Dattatreya today.

The decision will substantially increase the funds flow from ESIC to state-run health facilities like hospitals and dispensaries.

ESIC provides fund for state-run facilities based on the number of insured persons in state. The move will translate into additional funds of Rs 1,810 crore with the states.

ESIC said that with enhancement of this ceiling, the state governments may now further equip better their medical services to ESI Beneficiaries in its ESI medical institutions.

The enhanced ceiling of Rs 3000 will be fixed from 2017-2018 to 2019-2020 and reviewed annually from 2020-21 on the basis of WPI (wholesale price index) and expenditure pattern of the states.

It said that to extend the coverage to the entire workforce, a new employer friendly scheme has also been approved as one time opportunity to encourage the employers as well as employees to register themselves. This includes left out of employees including contractual, casual, temporary etc.

The proposed scheme will remain open for a period of three months from January 1, 2017 to March 31, 2017.