The Modi-led coalition government has allocated a higher amount for its flagship Ayushman Bharat health scheme in the Union Budget 2024-25. However, the budget does not mention bringing senior citizens aged 70 and above under the fold of the Ayushman Bharat-Pradhan Mantri Jan Aarogya Yojana (AB-PMJAY) as promised in the Bharatiya Janata Party’s (BJP) election manifesto earlier this year.

In her budget speech in parliament on July 23, Union Finance Minister Nirmala Sitharaman announced increasing the budgetary support for the Ayushman Bharat-PMJAY scheme from Rs 6,800 crore in FY2023-24 to Rs 7,300 crore in FY2024-25. The Union Cabinet also provided a significant boost to the healthcare sector by allocating Rs 90,958 crore to the programme, compared to Rs 90,658 crore earmarked in the Interim Budget released in February.

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What Is Ayushman Bharat-Pradhan Mantri Jan Aarogya Yojana (AB-PMJAY)?

Known as the world’s largest government-funded healthcare programme, AB-PMJAY aims to help underprivileged households with better access to healthcare services by providing insurance coverage of up to Rs 5 lakh per year for tertiary and secondary hospitalisation expenses.

Recently, AB-PMJAY achieved a milestone of generating 34.2 crore Ayushman cards across India, with 49.3 per cent held by females (as of July 8, 2024). Moreover, the scheme has covered 7.37 crore hospital admissions so far. It is important to check whether your family can be covered under the Ayushman Bharat Yojana since the scheme has specific eligibility criteria.

As per the Economic Survey 2023-24, “In the medium term, health premiums are projected to grow by 9.7 per cent annually in 2024-28, with regulatory initiatives to improve the attractiveness of insurance offering some support.”

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BJP’s Electoral Promise For Seniors

Says Sanil Basutkar, co-founder of Bharatsure, an insurance company, “The ruling government had proposed extending the Ayushman Bharat scheme to senior citizens aged 70 and above in its election promises. This would have provided essential health insurance coverage for crores of senior citizens. Unfortunately, the July budget had no mention of this plan. The future of this proposal remains uncertain, leaving many elderly Indians still without healthcare security.”

However, the scheme could be in the pipeline. “The expansion of the AB-PMJAY to include all senior citizens above 70 must be approved by the Union Cabinet, and there must be a special

provision to allocate funds for the purpose. It will take time,” the Times of India quoted an official as saying.

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Healthcare For Senior Citizenry

Says Narendra Bharindwal, vice president, Insurance Brokers Association of India (IBAI), “While the substantial allocation to Ayushman Bharat is commendable and likely to benefit senior citizens indirectly, a targeted approach remains crucial.”

Bharindwal emphasises that senior citizens have specific healthcare needs that demand tailored solutions. A more focused strategy could better address their unique requirements, such as enhanced coverage and long-term care facilities.

“Additionally, initiatives that directly reduce healthcare costs for seniors, such as government subsidy on premiums for retail health insurance or GST (Goods and Services Tax) credits for employers who continue to sponsor health insurance for employees post-retirement, would significantly improve their access to necessary medical services,” he says.

Last year, the government collected Rs 20.18 lakh crores in GST. “The contribution from retail health insurance is minuscule, estimated to be less than 0.4 per cent of the total collection. Reducing GST on health insurance premiums will directly contribute to increased insurance penetration and will be a great service, particularly for senior citizens,” Bharindwal states.