Ayushman Bharat sees reduction in state rates

Though the Pradhan Mantri Jan Arogya Ayushman Bharat Yojana was launched to provide health insurance coverage to nearly 10 crore families in the country, its low pricing is creating pressure on states governments to reduce rates for similar, state-sponsored schemes.

Thus, not only do states have to reconsider re-working the cost of health insurance schemes, hospitals are being gently goaded to reduce rates given under state schemes to match those of Ayushman Bharat.

Reports by the National Health Authority, and Insurance Regulatory and Development Authority of India (IRDAI) have taken into consideration the huge difference in the rates between the Centre's and state health scheme, which is pushing hospitals to show showing interest in the package with higher rates.

According to health activist Arun Gadre, the government, through Ayushman Bharat, is calling on hospitals to work on a higher volume of patients at lower pricing, but the move is not entirely beneficial for the health sector. "There is pressure on hospitals to reduce the rates, but no one knows the formula to reach agreeable pricing," said Gadre.

A senior official from an insurance company pointed that due to low rates, many hospitals are not connecting with Ayushman Bharat and those who are coming forward, are interested in the high-end packages only.