Summary (English)

Health insurance is a matter of life and death, especially for the poor.

On August 15, 2007, Prime Minister Manmohan Singh announced the creation of a new health insurance scheme; the Rashtriya Swasthya Bima Yojana or RSBY. (The scheme was formally launched on October 1, 2007). The objective of RSBY is to protect below poverty line (BPL) households from major health shocks that involve hospitalization. Specifically, BPL families are entitled to more than 700 in-patient procedures with a cost of up to 30,000 rupees per annum for a nominal registration fee of 30 rupees. Pre-exisiting conditions are covered and there is no age limit. Coverage extends to the head of household, spouse and up to three dependent children or parents.

There is a five year plan for rolling out the RSBY which allows each participating state to contract 20 per cent of their respective districts each year. By April 1, 2008, almost every large state government had expressed its intention of joining the scheme and many have already issued tender notices. Three states (Delhi, Haryana and Rajasthan) have begun enrollment. The initial response from beneficiaries has been very positive.

The Government of India, in cooperation with the participating state governments, will monitor the ground realities of the scheme during the next few years. Adjustments will be made as the experience unfolds, always with the same objective in mind : to provide poor households with insurance against the costs associated with major illness.