‘Ayushman Bharat played decisive role in reductions in out-of-pocket expenditure’

New Delhi: The Ayushman Bharat health insurance scheme has played a decisive role in the significant reductions observed in out-of-pocket expenditure through an increase in social security and primary health expenditure, with more than Rs 1.25 lakh crore in savings recorded, according to the Economic Survey 2024-25 that was tabled in Parliament on Friday.

The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) has revolutionised healthcare by providing a health coverage to the bottom 40 per cent of India’s most vulnerable populations, the survey said.

It covers more than 12 crore families or, approximately, 55 crore individuals and is the world’s largest health insurance scheme, offering annual hospitalisation benefits of up to Rs 5 lakh per family for secondary and tertiary care.

Launched to address health inequities, the AB-PMJAY prioritises the poorest segments of the population based on the Socio-Economic Caste Census 2011, adopting a holistic and need-based approach, the report said.

It asserted that this initiative aligns with India’s commitment to the sustainable development goals (SDGs), ensuring that no one is left behind.

As of January 1 2025, more than 36.36 crore Ayushman cards have been issued, the report said.

It added that 30,000 hospitals, including 13,352 private facilities, are empanelled under the scheme. Also, 49 per cent of the cardholders are women and 48 per cent of hospital admissions are utilised by women.

On September 11, 2024, the expansion of the AB-PMJAY was approved to include senior citizens aged 70 and above, irrespective of their socio-economic status.

This initiative provides free health coverage of up to Rs 5 lakh per family, benefitting approximately six crore senior citizens across 4.5 crore families, regardless of income, the report said.

The eligible senior citizens will receive a dedicated Vay Vandana Card to access the scheme’s benefits.

Additionally, those already covered under the scheme will get an exclusive top-up of Rs 5 lakh annually for their healthcare needs, separate from their family’s coverage.

As of January 15, 2025, more than 40 lakh senior citizens have been enrolled under the scheme, the report said.

Other initiatives, such as the free-dialysis scheme, have benefitted around 25 lakh people, it highlighted.

“The reduction in OOPE goes hand in hand with increased public spending in healthcare, demonstrating progress towards universal health coverage,” it stated.

The increase in government spending on health has an important implication for the reduction of the financial hardship endured by households.

In the Total Health Expenditure (THE) of the country between Financial Year 2015 and FY 22, the share of government health expenditures (GHEs) has increased from 29 per cent to 48 per cent, the report said.