Health Insurance for Unorganised Sector

On 15 th August Prime Minister had announced that a scheme costing Rs2000 crores will be announced for Health Insurance for people below the poverty line.

On 1 st October Finance Minister has announced the scheme.The salient points of the same are;

Name is Rashtriya Swastha Bima Yojana (RSBY)
No of families to be covered 1.2 crores
Family covers self,spouse,3 children
Beginning April1,2008
Sum assured for the family Rs 30000
Smart cards to be used.Valid all over the country.Benefits migratory labour.
All existing diseases to be covered.
Exclusions may be AIDS/HIV,STD's,drug and alcohol induced illness,congenital external diseases,sterilisation and fertility related procedures
Central Govt will bear 75% cost .State Govt will bear 25%
Till date 18 states have agreed to implement this scheme.
North Eastern States are ready to bear 10% cost only.
All PSU's and Private sector co's will get the opportunity.
State Govt will identify hospitals,Insurnace co,people eligible under BPL,who are to be issued smart cards

It is a welcome step when India is celebrating 60 years of indepenence.

During 2006 -07 Health Insurance premium was Rs 3210 crores .We forsee this figure will increase to Rs 5600 crores during 2007-08 .It will further increase to Rs 8400 crores during 2008-09.To this we will have to add Rs 751 crores being allocated by the Govt for this scheme so we can expect figure of Rs 9150 crores .

Comments are invited.

We are pleased that role has been given to private co's and state goverenments to implement this scheme.This issue was covered in one of our blog.