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The government will take a call on whether to continue its health scheme, Rashtriya Swasthya Bima Yojana (RSBY), after September this year. However, insurance officials said now only public sector general insurers have been given the mandate to continue with the scheme.
"Only we will operate under the scheme. After September, it may go under a trust. However, we have stated to the government representatives that having an insurer will aid the RSBY card issuance and claims management," said the general manager of a state-owned non-life insurer.
RSBY, launched by labour and employment ministry in April 1, 2008, was envisaged to provide health insurance coverage to below poverty line families.
RSBY beneficiaries are entitled to hospitalisation coverage of up to Rs 30,000 for most of the diseases. The government has even fixed package rates for hospitals for a large number of interventions. Pre-existing conditions are covered from day one and there is no age limit.
The coverage extends to five members of a family which includes the head of household, spouse and up to three dependents. Beneficiaries need to pay only Rs 30 as registration fee, while Central and state governments pay the premium to the insurer.
As on April 30, 2014, there were 37.19 million active smart cards under the scheme and 7.16 million cases required hospitalisation.
This scheme was a mechanism used by private insurers not only to reach out to more customers, but for building their brand in the hinterlands, where they may not have had a branch operation. The insurer for each region is selected on the basis of a competitive bidding process.
With the private sector out, some officials said a huge chunk of the business has been transferred to the public sector.
