The scheme is being popularly called as ModiCare on the lines of ObamaCare is a Health Insurance Scheme and it would provide medical insurance cover to nearly 10 crore household families in case of hospitalisation

JAIPUR/NEW DELHI February 2, 2018: In a major step towards social security in India, the Indian government could be implementing the Health Insurance Scheme on Independence Day or on October 2 this year, sources said.

Notably, Finance Minister Arun Jaitley had reportedly said in the budget that the ambitious National Health Insurance Scheme will require an investment of Rs10,000 to Rs12,000 crore. The scheme could be started from August 15 or October 2 this year, sources said.
Under this scheme, a health insurance cover of Rs5 lakh will be provided to 10 million poor families on government expenditure and in this per family expense is estimated to be spending Rs1,000-1,200 rupees per year on premium.

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The expenditure of the National Health Protection Scheme (NHPS) will be borne by the Central and State Governments. Once implemented it is being claimed that it would be the world’s largest government-funded health insurance scheme. He said that the central government will bear the burden of premium of Rs5,000 to Rs6,000 crore annually for the insurance cover to poor families and the remaining amount will be provided to the state governments.

Finance Minister Arun Jaitley in the Budget speech had said
58. Madam Speaker, we are all aware that lakhs of families in our country have to borrow or sell assets to receive indoor treatment in hospitals. Government is seriously concerned about such impoverishment of poor and vulnerable families. Present Rashtriya Swasthya Bima Yojana (RSBY) provide annual coverage of only `30,000 to poor families. Several State Governments have also implemented/supplemented health protection schemes providing varying coverage. My Government has now decided to take health protection to more aspirational level.

Finance Minister Arun Jaitley in the Budget speech had said
59. We will launch a flagship National Health Protection Scheme to cover over 10 crore poor and vulnerable families (approximately 50 crore beneficiaries) providing coverage upto 5 lakh rupees per family per year for secondary and tertiary care hospitalization. This will be the world’s largest government funded health care programme. Adequate funds will be provided for smooth implementation of this programme.

Union Finance Minister Arun Jaitley has reportedly said that the world’s largest medical insurance scheme announced in the budget will be cashless. After taking the treatment, the expenses on the behalf of the poor families would be borne by the government under the scheme. He said that it will be implemented from next financial year and allocation of funds will be increased if required.
The scheme has been popularly known as Modicare health insurance scheme. 40% of the total population i.e. 10 crore households will be given medical insurance cover upto five lakh rupees in secondary and tertiary care hospitalization.

Under the scheme the cost of admitting in higher-level hospitals would be insured. Certainly it will include all government hospitals and select private hospitals.

An initial amount of Rs2,000 crore has been allocated and if needed more funds would be allocated ass and when needed. Whatever amount is required after the implementation of the plan, it would be given, the finance minister has reportedly said.

In Annexure II (As referred in Para 70) Schematic outlays under Education, Health and Social Protection Sectors (Schematic Outlays) for Ministry/Department/Scheme Name for FY 2017-18 and FY 2018-19 the outlay for RSBY has been increased from Rs1,000 cr to Rs2,000 crore.

As many as 36,332,475 Active Smart Cards have been issued under RSBY and there have been 14,084,587 Total Hospitalisation Cases  as on date: 31/03/17.

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ModiCare, Arun Jaitley, National Health Protection Scheme, NHPS, Budget, Budget highlights, RSBY, Rashtriya Swasthya Bima Yojana