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LATEST NEWS UPDATES | Direct Plan Panel to give more money for Rashtriya Swasthya Bima Yojana: Mallikarjun Kharge to PMO by Amiti Sen

Direct Plan Panel to give more money for Rashtriya Swasthya Bima Yojana: Mallikarjun Kharge to PMO by Amiti Sen

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published Published on Jan 25, 2012   modified Modified on Jan 25, 2012

The labour ministry has asked the Prime Minister's Office to direct the Planning Commission to allocate sufficient resources for the UPA government's flagship health insurance scheme for the poor in fiscal 2012-13 so that patients are not refused admission by hospitals. 

The Rashtriya Swasthya Bima Yojana (RSBY), that guarantees 30,000 annual health insurance to a family of five, ran into trouble earlier this year due to shortage of funds. 

In a letter to Prime Minister Manmohan Singh, labour minister Mallikarjun Kharge said the requirement of funds for the scheme was increasing due to its expansion, and shortage of funds affected payment of premium to insurance companies. "We are taking up the matter with the Planning Commission, but a directive from you will go a long way in ensuring resources for this important scheme," Kharge said in his letter. 

The minister said that an estimate of Rs 960 crore was made for the RSBY scheme for 2011-12, but the allocation for all labour ministry schemes was only Rs 1,300 crore forcing the ministry to set aside a much smaller amount for the health scheme. 

Mid-way through the year, the RSBY exhausted its funds, and the labour ministry was forced to ask for contingency funds which was given after a lot of delay, which affected the scheme. "On account of non-payment of premium to the insurance companies, they, in turn, could not pay the claims amount to the hospital resulting in hospitals not admitting RSBY patients," Kharge said. 

The RSBY was initially rolled out in April 2008 for BPL families, but later the government decided to gradually extend it to unorganised workers like domestic workers, street vendors and beedi workers. The scheme, at present, has more than 25.7 million subscribers and has served 2.7 million persons. 

According to latest estimates of the labour ministry, requirement for funds for the RSBY scheme would be about Rs 1,100 crore for the current fiscal while for 2011-12, it would go up to Rs 1,900 crore. "There is definitely a need for a substantial hike in resources for RSBY and we hope the Planning Commission understands this need," a labour ministry official said. 

The premium for a RSBY card averages around Rs 600, three-fourth of which is given by the Centre while the rest is given by the states. Some state governments like Himachal Pradesh have increased the insurance amount for the scheme and are paying the entire premium amount for the extra insurance from their budgets.


The Economic Times, 25 January, 2012, http://economictimes.indiatimes.com/news/economy/policy/direct-plan-panel-to-give-more-money-for-rashtriya-swasthya-bima-yojana-mallikarjun-kharge-to-pmo/articles


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