Professional Documents
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National Health Policy 2017, to achieve the vision of Universal Health Coverage (UHC). This initiative has been
designed to meet Sustainable Development Goals (SDGs) and its underlining commitment, which is to "leave no
one behind."
Ayushman Bharat is an attempt to move from sectoral and segmented approach of health service
delivery to a comprehensive need-based health care service. This scheme aims to undertake path breaking
interventions to holistically address the healthcare system (covering prevention, promotion and ambulatory care) at
the primary, secondary and tertiary level. Ayushman Bharat adopts a continuum of care approach, comprising of
In February 2018, the Government of India announced the creation of 1,50,000 Health and Wellness
Centres (HWCs) by transforming the existing Sub Centres and Primary Health Centres. These centres are to
deliver Comprehensive Primary Health Care (CPHC) bringing healthcare closer to the homes of people. They
cover both, maternal and child health services and non-communicable diseases, including free essential drugs and
diagnostic services.
Health and Wellness Centers are envisaged to deliver an expanded range of services to address the
primary health care needs of the entire population in their area, expanding access, universality and equity close to
the community. The emphasis of health promotion and prevention is designed to bring focus on keeping people
healthy by engaging and empowering individuals and communities to choose healthy behaviours and make
changes that reduce the risk of developing chronic diseases and morbidities.
The second component under Ayushman Bharat is the Pradhan Mantri Jan Arogya Yojna or PM-JAY
as it is popularly known. This scheme was launched on 23rd September, 2018 in Ranchi, Jharkhand by the
Ayushman Bharat PM-JAY is the largest health assurance scheme in the world which aims at
providing a health cover of Rs. 5 lakhs per family per year for secondary and tertiary care hospitalization to over
10.74 crores poor and vulnerable families (approximately 50 crore beneficiaries) that form the bottom 40% of the
Indian population. The households included are based on the deprivation and occupational criteria of Socio-
Economic Caste Census 2011 (SECC 2011) for rural and urban areas respectively. PM-JAY was earlier known as
the National Health Protection Scheme (NHPS) before being rechristened. It subsumed the then existing Rashtriya
Swasthya Bima Yojana (RSBY) which had been launched in 2008. The coverage mentioned under PM-JAY,
therefore, also includes families that were covered in RSBY but are not present in the SECC 2011 database. PM-
JAY is fully funded by the Government and cost of implementation is shared between the Central and State
Governments.
PM-JAY is the world’s largest health insurance/ assurance scheme fully financed by the government.
It provides a cover of Rs. 5 lakhs per family per year for secondary and tertiary care hospitalization across
Over 10.74 crore poor and vulnerable entitled families (approximately 50 crore beneficiaries) are eligible for
these benefits.
PM-JAY provides cashless access to health care services for the beneficiary at the point of service, that is,
the hospital.
PM-JAY envisions to help mitigate catastrophic expenditure on medical treatment which pushes nearly 6
and medicines.
Benefits of the scheme are portable across the country i.e. a beneficiary can visit any empanelled public or
Services include approximately 1,393 procedures covering all the costs related to treatment, including but
not limited to drugs, supplies, diagnostic services, physician's fees, room charges, surgeon charges, OT
Public hospitals are reimbursed for the healthcare services at par with the private hospitals.
Benefit cover under various Government-funded health insurance schemes in India have always been
structured on an upper ceiling limit ranging from an annual cover of INR30,000 to INR3,00,000 per family across
various States which created a fragmented system. PM-JAY provides cashless cover of up to INR5,00,000 to each
eligible family per annum for listed secondary and tertiary care conditions. The cover under the scheme includes all
Pre-hospitalization
Medicine and medical consumables
Accommodation benefits
Food services
The benefits of INR 5,00,000 are on a family floater basis which means that it can be used by one or
all members of the family. The RSBY had a family cap of five members. However, based on learnings from those
schemes, PM-JAY has been designed in such a way that there is no cap on family size or age of members. In
addition, pre-existing diseases are covered from the very first day. This means that any eligible person suffering
from any medical condition before being covered by PM-JAY will now be able to get treatment for all those medical
conditions as well under this scheme right from the day they are enrolled.
Over the last few decades, the world’s eyes have been on India as it’s economy has been one of the
top three fastest growing economies of the world. However, despite making remarkable strides in several sectors,
India is still classified as a Lower Middle-Income Country (LMIC) according to World Bank classification of
countries based on per capita GDP, mostly due to its inconsistent socio-economic and health indicators.
Statistics show that more than 20 per cent of India’s population still lives under $1.9 per day (2011
PPP). According to a World Bank projection, by 2021 more than 34% of India’s population will be in the age group
of 15-35 years. This rich demographic dividend enables India to be highly optimistic about a sustained economic
growth for few more decades before a higher dependency ratio sets in. However, the perceived benefits of the
higher demographic dividend are threatened by the epidemiological transition in India which is currently facing the
unique situation of a “triple burden of disease.” As the mission of eradication of major communicable diseases
remains unfinished, the population is also bearing the high burden of non-communicable diseases (NCDs) and
injuries. This leads to an overall rise in the demand for health care over a prolonged period of time.
However, with a total population of more than 1.3 billion people, the supply side of adequate and
affordable healthcare in India is found wanting. Figures show an overwhelming tilt towards health care services in
the private sector which cater to nearly 70% of all visits for health care needs in India and have 50% of total
hospital beds. But, individually most providers in the private sector are very small (with less than 25 beds). They
are also unregulated, with varying standards of quality of care and are mostly situated in large metros or urban
neighbourhoods leaving a great deficit of health services for the underprivileged population of India.
But being the second most populous nation in the world, the public sector hospitals in India are
understandably overburdened. Their utilisation varies widely and they often have to work under challenging
circumstancing arising from the lack of sufficient funds, a shortage of trained health workers and the erratic and
often deficient supply of drugs and equipment which adversely impacts their functioning.
One of the major causes of this situation is the persistent underfunding of the country’s public health
care system. Over the last two decades, the Government of India’s overall expenditure on health has remained
stagnant at about 1.2% of its GDP (Source: National Health Accounts, 2015). Of its total expenditure on health,
India spends only 21% from the Government revenue and as high as 62% from out-of-pocket expenses (Source:
National Health Accounts, 2015). Thus, it has been deduced that increasing health care needs, coupled with high
out-of-pocket expenditure, is a leading cause of poverty in India. Not only does it keep people poor, but it also
pushes nearly 6 crore Indians back into poverty each year. The following graph depicts this situation clearly by
In the past, there have been several efforts by the Central and various State Governments to
strengthen demand side financing by launching various Government-funded health insurance schemes. The
Rashtriya Swasthya Bima Yojana (RSBY) was launched with an annual cover of INR30,000 per family at the
central level which catered mostly to secondary care hospitalisation while many State schemes catered to tertiary
care conditions. However, these schemes worked independently of the larger health care system in the country
and resulted in further increasing the fragmentation of risk pools. Additionally, none of these schemes had any
To address these challenges, the Government of India took a two-pronged approach under the
umbrella of Ayushman Bharat. The first component of this strategy was disease prevention and health promotion
to curb the increasing epidemic of non-communicable diseases. This was to be ensured through upgradation of the
existing network of Sub-centres and Primary Health Centres to Health and Wellness Centres (HWC). Nearly
150,000 HWCs are to be set up in the country over the next few years which will work towards reducing the overall
The second component was the launch of the Pradhan Mantri-Jan Arogya Yojana (PM-JAY) which
aims to create a system of demand-led health care reforms that meet the immediate hospitalisation needs of the
eligible beneficiary family in a cashless manner thus insulating the family from catastrophic financial shock. In the
long run, the PM-JAY, through its system of incentives, aims to expand the availability of its services. With greater
demand, the private sector is likely to expand in the unserved areas of Tier-2 and Tier-3 cities. For public hospitals,
PM-JAY will provide an incentive to prioritise poor patients and shall provide means to generate additional revenue
for strengthening their infrastructure and fill their service gaps. PM-JAY has subsumed the existing RSBY and also
works in convergence with various State Government funded health insurance/ assurance schemes.
Because of its scope, PM-JAY is the world’s largest health insurance/assurance scheme that offers a
health cover to nearly 10.74 crore poor families which comes to a staggering 50 crore Indians that form 40% of its
bottom population. It is fully funded by the Government and provides financial protection for a wide variety of
secondary and tertiary care hospitalisations. The prime objective of PM-JAY is to reduce catastrophic out-of-pocket
health expenditure by improving access to quality health care for its underprivileged population. More details on its
evolution, planning, eligibility and state wise implementation are discussed ahead.
Including the poorest and most vulnerable population of any country in the health
insurance programme is often the most challenging because they cannot pay any premium and are
the hardest to reach. Many times they are also not literate and, therefore, require a very different
approach for awareness generation. This is true for most Lower and Middle-Income Countries (LMIC)
and India is not an exception.
Thus, PM-JAY has been rolled out for the bottom 40 per cent of poor and vulnerable
population. In absolute numbers, this is close to 10.74 crore (100.74 million) households. The
inclusion of households is based on the deprivation and occupational criteria of the Socio-Economic
Caste Census 2011 (SECC 2011) for rural and urban areas, respectively. This number also includes
families that were covered in the RSBY but were not present in the SECC 2011 database.
The SECC involves ranking of the households based on their socio-economic status. It
uses exclusion and inclusion criteria and accordingly decides on the automatically included and
automatically excluded households. Rural households which are included (not excluded) are then
ranked based on their status of seven deprivation criteria (D1 to D7). Urban households are
categorised based on occupation categories.
In line with the approach of the Government to use the SECC database for social welfare
schemes, PM-JAY also identifies targeted beneficiary families through this data.
Rural Beneficiaries
Out of the total seven deprivation criteria for rural areas, PM-JAY covered all such families who fall into
at least one of the following six deprivation criteria (D1 to D5 and D7) and automatic inclusion(Destitute/ living on
alms, manual scavenger households, primitive tribal group, legally released bonded labour) criteria:
D1- Only one room with kucha walls and kucha roof
D7- Landless households deriving a major part of their income from manual casual labour
Urban Beneficiaries
For urban areas, the following 11 occupational categories of workers are eligible for the scheme:
Ragpicker
Beggar
Domestic worker
Construction worker/ Plumber/ Mason/ Labour/ Painter/ Welder/ Security guard/ Coolie and other head-load
worker
Transport worker/ Driver/ Conductor/ Helper to drivers and conductors/ Cart puller/ Rickshaw puller
Shop worker/ Assistant/ Peon in small establishment/ Helper/Delivery assistant / Attendant/ Waiter
Washer-man/ Chowkidar
Even though PM-JAY uses the SECC as the basis of eligibility of households, many States
are already implementing their own health insurance schemes with a set of beneficiaries already
identified. Thus, States have been provided the flexibility to use their own database for PM-JAY.
However, they will need to ensure that all the families eligible based on the SECC database are also
covered.
Expansion of coverage by States under PM-JAY and convergence
Various States have been implementing their own health insurance/assurance schemes
over the past couple of decades. Most of these schemes provide cover for tertiary care conditions
only. The benefit cover of these schemes is mostly available within the State boundaries except some
smaller States have empanelled a few hospitals outside the State boundaries. Very few States had
converged their schemes with the erstwhile RSBY scheme and many of them were operating
independently. This was due to the lack of flexibility in the design of the RSBY, which although initially
helped in quick scale-up but became a challenge over a period of time and offered limited flexibility to
the States.
Even though these schemes were targeting the poor and vulnerable, there were large
variations across States in terms of eligibility criteria and databases. Few States were using the food
subsidy database while some others had created a separate database for their welfare schemes.
The primary objectives for launching PM-JAY were to ensure comprehensive coverage for
catastrophic illnesses, reduce catastrophic out-of-pocket expenditure, improve access to
hospitalisation care, reduce unmet needs, and to converge various health insurance schemes across
the States. PM-JAY will also establish national standards for a health assurance system and is
providing national portability of care. At the implementation level, the States are given the flexibility to
use their own database if they were already implementing a health insurance/ assurance scheme and
were covering more families than those eligible as per the SECC 2011 database. However, such
States shall ensure that all families eligible as per the SECC data are covered and not denied
benefits.
Implementation Model
Various States are using different models for implementing their own health insurance/ assurance
schemes. Some of them are using the services of insurance companies while others are directly implementing the
Considering the fact that States are at different levels of preparedness and have varying capacity to
manage such schemes, PM-JAY provides the States with the flexibility to choose their implementation model. They
can implement scheme through assurance/trust model, insurance model or mixed model.
scheme is directly implemented by the SHA without the intermediation of the insurance company. The financial risk
of implementing the scheme is borne by the Government in this model. SHA essentially reimburses health care
providers directly. Even though no insurance company is involved, the SHA employ the services of an
Implementation Support Agency (ISA) for claim management and related activities. As there is no insurance
company in the picture, apart from day-to-day management and administration of the scheme, the SHA also has to
carry out specialised tasks such as hospital empanelment, beneficiary identification, claims management and
B. Insurance Model
In the insurance model, the SHA competitively selects an insurance company through a tendering
process to manage PM-JAY in the State. Based on market determined premium, SHA pays premium to the
insurance company per eligible family for the policy period and insurance company, in turn, does the claims
settlement and payments to the service provider. The financial risk for implementing the scheme is also borne by
the insurance company in this model. However, to ensure that the insurance company does not make an
unreasonable profit, the scheme provides for a mechanism where insurance companies can only get a limited
After adjusting a defined percentage for expenses of management (including all costs excluding only
service tax and any cess, if applicable) and after settling all claims, if there is surplus then 100 per cent of leftover
surplus should be refunded by the insurer to the SHA within 30 days. The percentage that will need to be refunded
ii. Administrative cost allowed 15% if claim ratio between 60 to less than 70%.
iii. Administrative cost allowed 20% if claim ratio between 70 to less than 80%.
ii. Administrative cost allowed 12% if claim ratio between 60 to less than 70%.
iii. Administrative cost allowed 15% if claim ratio between 70 to less than 85%.
In case the claim settlement ratio exceeds 120% (115% in the case of Category B States) in any policy
period, then the excess amount shall be initially shared in equal proportion between the insurance company and
State Government / Union Territory. Thereupon, out of the excess burden amount, which the State Government /
Union Territory has borne, the Central Government shall share the burden in line with the sharing pattern ratio.
However, the total contribution of the Central Government along with the premium share and excess burden
amount of claim shall not exceed the maximum ceiling amount of share of Central Government, applicable for that
particular States / UTs, respectively. Any amount over and above the Central and State Government’s contribution
C. Mixed Model
Under this, the SHA engages both the assurance/ trust and insurance models mentioned above in
various capacities with the aim of being more economic, efficient, providing flexibility and allowing convergence
with the State scheme. This model is usually employed by brownfield States which had existing schemes covering
Category Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh,
B States Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal
PM-JAY is completely funded by the Government and costs are shared between Central and State
Governments. The Government of India decides a national ceiling amount per family that is used to determine the
maximum limit of the central share of the contribution. The actual premium discovered through open tendering
process or the maximum ceiling of the estimated premium decided by Government of India for the implementation
of PM-JAY, whichever is less, would be shared between Central Government and States/UTs in the ratio as per
the extant directives issued by Ministry of Finance, from time to time. In addition, administrative cost for
implementing the scheme at the State level is also provided under the scheme and shared between Centre and
The existing sharing pattern is in the ratio of 60:40, for States (other than North-Eastern States & three
Himalayan States) and Union Territories with legislature. For North-Eastern States and three Himalayan States
(viz. Jammu and Kashmir, Himachal Pradesh and Uttarakhand), the ratio is 90:10. For Union Territories without
Insurance model – A flat premium per family, irrespective of the number of members under PM-JAY in that
family, is paid to the State Government which in turn pays this to the insurer based on the number of eligible
families.
Assurance model – Central share of the contribution is paid based on the actual cost of claims or the ceiling
whichever is lower. If the State is using an Implementation Support Agency, then cost of ISA, determined
Expansion of Coverage By States Under PM-JAY, Convergence and Flexibility to The States
Various States have been implementing their own health insurance/assurance schemes over the past
couple of decades. Most of these schemes provide cover for tertiary care conditions only. The benefit cover of
these schemes is mostly available within the State boundaries except some smaller States who have empanelled
a few hospitals outside the State boundaries. Very few States had converged their schemes with the erstwhile
RSBY scheme and many of them were operating independently. This was due to the lack of flexibility in the design
of the RSBY, which although initially helped in quick scale-up but became a challenge over a period of time and
Even though these schemes were targeting the poor and vulnerable, there were large variations
across States in terms of eligibility criteria and databases. Few States were using the food subsidy database while
some others had created a separate database for their welfare schemes.
The primary objectives for launching PM-JAY were to ensure comprehensive coverage for catastrophic
illnesses, reduce catastrophic out-of-pocket expenditure, improve access to hospitalisation care, reduce unmet
needs, and to converge various health insurance schemes across the States. PM-JAY will also establish national
standards for a health assurance system and is providing national portability of care.
In the spirit of cooperative federalism and keeping in mind variations across the States, a lot of
flexibility has been built in the PM-JAY design. Therefore, PM-JAY provides a lot of flexibility to States in terms of
States have been provided the flexibility in terms of the following parameters:
Mode of implementation – States can choose the implementation model and can implement the scheme
Usage of beneficiary data – PM-JAY uses SECC data for targeting the beneficiaries, however, States have
been provided flexibility to decide on the dataset for this purpose, if they are covering more beneficiaries than
SECC defined numbers. However, State will need to ensure that all beneficiaries eligible as per SECC data
Co-branding – States can co-brand their existing health insurance/assurance schemes with PM-JAY as per
Expansion of cover to more people – States can cover more number of families than those defined as per
SECC data. For these additional families, full cost will need to be borne by the States.
Increasing benefit cover to higher value – If the State want they can even expand the benefit cover beyond
`5 lakh per family per year. However, in this case cost of additional cover will need to be completely borne by
the State.
Revision in package numbers and pricing – PM-JAY provides cover of more than 1300 packages and their
prices have been fixed by NHA. However, keeping in view the different disease profile and cost of services
variations across the States, flexibility has been provided to the States to expand the number of packages and
also within a limit State can also revise the package prices.
Reservation of packages for public hospitals – To ensure that such services that can be provided well by
Government health facilities are not misused by private providers, NHA has defined a set of conditions that
are reserved for only public health care facilities. States can revise list of such conditions that are reserved for
public hospitals.
IT Systems – Before the launch of PM-JAY some of the States were implementing their own health
insurance schemes and were using their own IT systems. PM-JAY provides flexibility that State can continue
using their own IT system and share data with NHA on a real time basis in specified format.
Payment to public hospitals – States have also been provided flexibility to deduct a certain percentage of
Hospital Empanelment
The supply of health care services under PM-JAY must be ensured through pre-selected, well
equipped and well-prepared hospitals to deliver the benefits. Also, the hospitals must be distributed widely enough
In order to cater to the increased demands under PM-JAY and also to ensure quality care to the
beneficiaries, it is imperative to maintain and grow a network of hospitals that also conform to the quality standards
and criteria. This leads to the need of empanelment of hospitals on a pre-emptive basis so that beneficiaries are
certain of their rights being honoured in the most convenient, cashless and quality manner.
Empanelment Criteria
Considering the supply side characteristics (nearly 71 per cent of the hospitals are running as
proprietorship businesses with less than 25 beds capacity and offering non-specialised general clinical care), two
types of empanelment criteria have been evolved. These criteria have been evolved based on the experience of
the prevalent practice in other Government-funded health insurance schemes, State-specific regulations related to
Special Criteria (for clinical specialties) – For each specialty, a specific set of criteria has been identified.
Under PM-JAY, a hospital is not allowed to select the risk, which means it cannot apply for selected
specialties and must agree to offer all specialties to PM-JAY beneficiaries that are offered by it. However, in
order to offer a specialised clinical service, the hospital must have necessary specific infrastructure and HR in
place as mentioned in the special criteria developed under PM-JAY for the same.
Each empanelled hospital needs to set up a dedicated help desk for the beneficiaries,
which is manned by a dedicated staff appointed by the Empanelled Health Care Provider (EHCP).
These help desk staff are called Pradhan Mantri Arogya Mitras (PMAMs) and their role is to facilitate
treatment of beneficiaries at the hospitals. Every empanelled hospital receives a unique ID also.
o Hospitals are required to apply online which is free of cost. The progress of the application
is carried out.
o Following this verification, the DEC submits a recommendation to approve or reject the
hospital to the SEC. The final decision regarding empanelment rests with the SEC.
o Continuous quality improvement and other incentives to empanelled
hospitals
o At the time of empanelment a hospital need not be NABH accredited but if during the course
of association with PM-JAY a hospital attains entry level NABH accreditation, it is paid 10 per
cent higher package rates. Similarly, the hospital attaining a full accreditation is paid 15 percent
higher.
o Hospitals attached to teaching institutions (medical, PG and DNB courses) are entitled for 10
JAY has come up with 10% higher package rates for hospitals which are situated in aspirational
districts.
Although States are in charge of the empanelment of hospitals, there are eminent tertiary
care hospitals and specialised care hospitals that operate as autonomous institutes of excellence
directly under the Ministry of Health and Family Welfare (MoHFW) or some other department. Most
popular examples of such hospitals are AIIMS, Safdarjang Hospital, JIPMER, PGI Chandigarh, etc.
The National Health Authority (NHA) has empanelled these hospitals directly by signing an MoU with
each of the facility. Also, all NABH accredited private hospitals in the National Capital Region (NCR)
are directly empanelled by NHA to widen the network of service providers. Empanelment of
Government hospitals other than those managed by MoHFW is also a major step towards widening
the network of hospitals.
To ensure that the hospitals do not overcharge and rates do not vary across hospitals, empanelled
health care providers (EHCP) are paid based on specified package rates. A package consists of all the costs
associated with the treatment, including pre and post hospitalisation expenses. The specified surgical packages
are paid as bundled care (explained below) where a single all-inclusive payment is payable to the EHCP by
insurer/SHA. The medical packages, however, are payable to the EHCP on a per day rate depending upon the
admission unit (general ward, HDU, ICU) with certain pre-decided add-ons payable separately. Day-care packages
are payable just like surgical packages. The treatment packages are very comprehensive, covering treatment for
nearly 24 specialities that include super speciality care like oncology, neurosurgery and cardio-thoracic and
cardiovascular surgery, etc. The package rate (in case of surgical or defined day-care benefits) includes:
Registration charges
Anaesthesia, Blood Transfusion, Oxygen, O.T. Charges, Cost of Surgical Appliances, etc.
Pathology and radiology tests: radiology to include but not be limited to X-ray, MRI, CT Scan, etc. (as
applicable)
Food to patient
Pre and Post Hospitalisation expenses: Expenses incurred for consultation, diagnostic tests and medicines
before the admission of the patient in the same hospital, and up to 15 days of the discharge from the hospital
Any other expenses related to the treatment of the patient in the EHCP
As mentioned in the previous section based on a few criteria, hospitals can be paid a higher amount.
For such surgical conditions that are not listed in the package list, an EHCP will need to take approval and fix the
rate from the insurer/ SHA before providing the treatment up to the limit of INR 1,00,000.
different aspects of AB PM-JAY including HBP 1.0. Majority of the feedback received on HBP could be broadly
Package rates offered for many packages were inadequate to cover the cost of procedures
Duplication of packages was observed both within a single specialty and across specialties
Few of the procedures were overlapping with the ongoing National Health Programs
Some of the high-end procedures / investigations / drugs are not covered in HBP 1.0
Due to the non-availability of certain treatments, a lot of procedures were being booked under Unspecified
packages
All the concerns and feedback received from stakeholders and various other sources of different
aspects of AB PM-JAY were deliberated upon in the first Governing Board meeting of NHA, in the month of April
2019. To address the gross anomalies, a mandate was given to NHA for rationalization of HBP.
For this purpose, 24 Specialist Committees were constituted. A Memorandum of Understanding was
inked between NHA and Tata Memorial Hospital (TMH) for the review of Oncology packages. Department of
Health Research (DHR) was conducting a study “Costing of Health Services in India” (CHSI), the data collection
from Public sector hospitals for 8 specialties had been completed. DHR agreed to share these interim results with
NHA. These results were provided to the specialist committees as an input during deliberations for the
rationalization of HBP pricing (Please see Annex 1: Inputs provided to the specialist committee and decisions
sought). The initial steps in the exercise of rationalization of Health Benefit Package (HBP) were carried out using
three different processes which are detailed in flow chart – “Process for rationalization of HBP”.
Following the due procedure, the recommendations were presented to the Governing Board of NHA.
To discontinue the packages of Tubectomy and Vasectomy as the services are provided under National
It was decided by the Governing Board that the increase in package rates of 270 packages will be
moderated by 10%.
States with a State-owned health insurance scheme can keep their own rates for all the packages.
However, they are required to adhere to mandatory 1,391 packages as specified in the PM-JAY list. The list can be
expanded based on additional packages from their own scheme which were not a part of the national package
master.
States with no health scheme other than PM-JAY can adopt the national package master with context-
specific variations such as revision of prices in the range of 10 per cent, reservation of procedures for public
hospitalisation, additional packages under mandatory pre-authorisation, etc. States do have the flexibility to add
packages or modify rates according to their requirements; further, they even have the flexibility to change terms of
pre-authorization and modify the list of the public hospital only packages which was devised to prevent any
HBP 2.0 has features that facilitates an enhanced coverage of both disease conditions and procedures than
were previously included, while keeping a low count of packages. Features which aid this enhanced coverage
are stratification, cross specialty packages, multiple procedures in a package etc. This is expected to reduce
the burden on PMAMs in selection of packages without compromising on data availability for analysis
Certain packages are now allowed to be booked with a primary package at a 100% reimbursement contrary
to the principle of 50% reimbursement of the second package in HBP 1.0. Also, some packages have been
identified as Stand-Alone Packages which means that they cannot be booked with any other package.
Some procedures require prolonged / multiple follow up beyond the limit of 15 days included in a package.
For such procedures, follow – up packages have been included to ensure continuity of care.
Certain features have been introduced in HBP 2.0 to minimise potential of fraud and abuse. In certain
cases, time interval for booking of sequential packages has been defined, maximum number of permissible
implants has been built in, maximum number of times a package can be booked in an individual has been
defined. Other features such as identification of stand-alone packages, and standardization of rates across
allows better analytics and improved dashboards of package utilization and its monitoring. Scientific
nomenclature and coding further strengthen HBP 2.0 towards uniformity and improved acceptance across the
country.
In order to enable PMJAY ‘swiftly & effortlessly,’ it was required that information technology is
orchestrated in such as a manner that there is minimum ‘time-to-launch’. Since its launch IT has provided a robust
backbone to the scheme's implementation throughout the nation. The below are the key technology blocks.
PMJAY Data Warehouse. Is used for real-time reporting of transactions, evaluating performance and
Hospital Empanelment System : Allows for registration and approval of hospitals for empanelment.
Features for Hospital Quality Assurance are also being made available in this system.
Beneficiary Identification System (BIS) : Allows for searching beneficiaries through SECC or additional
data sets through APIs and supports Aadhaar eKYC (electronic Know Your Customer) and non-Aadhaar
Transaction Management System (TMS) : Allows for capturing of in-patient data on admission, treatment
and discharge, and onwards to hospital claims and financial settlement. It is integrated with other State based
Citizen Portal (mera.pmjay.gov.in) : Allows for citizens to search the beneficiary database to ascertain the
eligibility under the scheme. The popular self-help tool has allowed for mass scale searches right at the field
Citizen Call Centre (14555) : National Toll-Free number backed with a 400+ multi-lingual, multi-location
call centre services which allows beneficiaries to find out their eligibility, nearest hospital, nearest Common
Service Centre etc. Service offerings through the call centre have been enlarged to allow for beneficiary
National Health Stack : Followed as a design philosophy, the NHS shall enable PM-JAY to capture data
which can be used in the future to enhance scheme design and allow for further inclusion/ universalization.
Developments underway for National Health Claims Platform (NHCP) and enhancement of existing PM-JAY
systems. These constructs will pave the way for creation of market led service delivery products for regulated
insurance scheme.
PM-JAY Portal : Single source of all information and content related to the scheme, the platform is being
enhanced to support back-office functions as well. The portal is used to share best-practices, Standard
Operating Procedures (SOPs), Policies and Guidelines, and act as a front end to the Grievance Management
System.
Information Security & Data Privacy Policies : Put in perspective the various check-lists enforced on the
IT Ecosystem – Service Providers and Consumers to ensure end to end information security and privacy of
personally identifiable data for beneficiaries. Continuous assessments are undertaken to ensure compliance.
National Portability : Unique to the scheme, IT system has allowed portability of benefits for the
beneficiary regardless of the location. This has been possible only by designing systems which allow for a
Grievance Management System : Allows for beneficiaries and whistle-blowers to register grievances and
for NHA/ SHAs to ‘take-to-closure’ such grievances. As a key element towards building trust amongst
Anti-Fraud Measures : As part of the IT landscape, a ‘Man-Machine’ model has been envisaged to counter
fraudulent transactions and entities. The model shall generate triggers for suspicious transactions and entities,
and will also allow for closure of investigations of such transactions. National Anti-Fraud Unit and State Anti-
Fraud Unit have been institutionalized to support investigations at the State level.
Citizen Mobile App : Allows for registered beneficiaries to find out their existing ‘wallet balance’ in the
scheme, search for the nearest hospitals and provide feedback on the services being provided by the
hospitals. As a simple personal tool shall empower the beneficiaries to know their utilization of the entitled
benefits.
Common Service Centre (CSC) : As a service delivery partner, CSCs further the reach of the scheme in
rural India through their Gram Panchayat level network. CSCs have helped extensively through their network
in not only communicating about the scheme but also helping potential beneficiaries find out about their
B. PM-JAY IT Ecosystem
Since PM-JAY is an entitlement-based scheme where there is no advance enrolment process, making
beneficiaries aware of the scheme is the most critical aspect. Information, Education and Communication activities
need to be carried out to educate beneficiaries about the scheme. Various modes of communication such as
leaflets, booklets, hoardings, TV, radio spots etc are important elements for creating a comprehensive
communication strategy for disseminating the desired messages across the target audience.
A detailed communication strategy has been developed by NHA which is to be implemented at both
national and State levels. NHA is also working on the overall cooperation & capacity-building with the States for
implementation and development of communication strategy required for increasing awareness at the State level.
Due to large quantum of people being covered under PM-JAY, there is a strong need to spread
awareness with the right message, through the right media and within the right timeframe. IEC activities were
initiated immediately after the Cabinet approval to the scheme on 21st March, 2019. The first major
initiative, Additional Data Collection Drive (ADCD) drive was undertaken by participating in “Gram Swaraj
Abhiyaan” of Ministry of Rural Development on 30th April, 2018 named as “Ayushman Bharat Diwas” with an
objective to make people aware about the upcoming scheme benefits and entitlement check by involving ASHA &
ANMs and Gram Sevak covering around 3 lakh villages across the country. Various posters, banners etc. were
designed and deployed in Hindi and regional languages across all camps and village meetings for spreading the
awareness.
A letter from Hon’ble Prime Minister was sent to all beneficiary families to make them aware about
their entitlements under the scheme and also provide them a family card with unique family ID. Standardised
design materials have been prepared by NHA that are being used by States for making beneficiaries aware about
the scheme. Various communication channels like print media, television, radio, social media etc. are being used
to reach beneficiaries and other stakeholders. A communication strategy and IEC guidebook has also been
developed for this purpose. A dedicated web portal for the scheme www.pmjay.gov.in has been also created to
provide all the details about the scheme to various stakeholders. All relevant information and links e.g. list of
empanelled hospitals, Am I eligible portal, grievance redressal portal, gallery, operational guidelines are placed
here.
Support Systems
Apart from above mentioned critical components of PM-JAY's ecosystem following are some other key
components working as the support system for the smooth implementation of the scheme.
Capacity Development
Capacity building activities under PM-JAY attempt to address more than just training and cover all
aspects of building and developing sustainable and robust institutions and human resource. Capacity building in
Building and strengthening the human resource and institutional capacity, and
Sustaining knowledge and skill through knowledge management and use of appropriate tools. The roles of
institution as well as each of its personnel at national, State and district level were defined as were their
specific skill sets required. These personnel were further categorised on the basis of role and appropriate
The NHA has taken the leadership role in assessing the requirements, making available resources,
devising strategies for enabling States to undertake capacity building activities and providing technical assistance
to States. Standardised learning content on identified thematic areas is being developed by the NHA. States can
customise these materials and deliver through various methodologies as per their annual training plan. Monitoring
and quality assurance measures with feedback mechanism have also been put in place to ensure effectiveness
and efficiency. Partnerships and networks are being created with Government and non-Government institutions
having expertise in various fields to support the capacity building initiatives in PM-JAY.
Capacity building initiatives in PM-JAY started with the orientation of SHA officials followed by various
workshops for personnel from specific portfolios like IT, fraud control, claim management, etc. Workshops for ISAs
and banking partners were also organised. Master trainers were created at the State level who in turn trained more
than 10,000 Pradhan Mantri Arogya Mitras (PMAMs) at empanelled hospitals before the beginning of the
programme. Learning materials were also made available in the portal to facilitate State and district level trainings.
An e-learning platform is now being developed with the support of the National Skill Development Council (NSDC)
for training and certifying Arogya Mitras. Various workshops, cross learning forums and thematic trainings are
Monitoring and Evaluation under PM-JAY Monitoring and Evaluation (M&E) is key for successful
implementation and ensuring the intended results of such a large insurance scheme. The NHA at the Central level
is continuously keeping track on periodic basis on these UHC dimensions (coverage, benefits and financial
Beneficiary management
Transaction management
Provider management
Support function management (comprising functions such as capacity development, grievances, frauds and
A strong real-time online MIS is set up at the national level to review Key Performance Indicators
(KPIs) and achievement of results with respect to the targets defined under the domains. The various dashboards
developed using business intelligence tools help in identifying the gaps and provide an overview of the
performance made. To mention a few: the operations dashboard presents an update of KPIs of beneficiary
information system, pre-auth dashboard helps to access state and district wise distribution of pre-auth, status of
empanelled hospitals, portability dashboard gives us the picture of interstate and intrastate portability and their
Most of the States, which do not have their own schemes, are using the NHA software. However,
States with their own schemes are either using the above or their own software followed by API integration to
In order to provide a comprehensive picture of the progress made by all the functional domains,
factsheets are developed monthly at the State and National level. The factsheet compares the progress made
since the inception of the scheme across States with the progress made in each month. The average claim size,
total number of pre-auths generated, pending approvals, nomenclature of the packages used at public and private
facilities are some of the important indicators included in the factsheet. The triggers and outliers (if any) identified
through the dashboards and factsheet are further drill down to districts level.
To assess and comprehend the impact of PM-JAY, evidence generation is done through evaluation
studies in collaboration with premiere research institutions and in partnership with development agencies such as
GIZ, WHO and World Bank. The objective of these evaluation studies is to understand the impact of the scheme
on various parameters including but not limited to out-of-pocket expenditure, access to health, health seeking
behaviour, etc. These research studies provide critical inputs for evidence-based decision-making and carrying out
mid-course corrections.
For a programme of this scale, magnitude and complexity as that of PM-JAY, it is critical to put in a
place a strong anti-fraud mechanism not only from financial perspective but also to safeguard people’s health from
unethical behaviour and malpractices. The National Health Authority is cognizant of the issue and has taken a
number of steps to safeguard the programme from the inception. Some of the key actions taken in this regard are
listed below.
A transparent tendering process implemented for selection of insurance company, Implementing Support
Agency and other service providers. Tightly worded legal document for service delivery as per pre-defined
Service Level Agreements have been developed with penalty clauses and punitive action to deal with
fraudulent activities on the part of any agency involved in delivering services under PM-JAY.
Hospital empanelment process has been developed with a two-tiered structure approach involving district
level and State level committees, having due representation of senior officials – civil surgeon, chief medical
officer and nodal officers of the district. The entire process is web enabled whereby a hospital can track the
status of its empanelment from application to approval by the State Nodal Age.
IT system and processes have been designed with checks and balances along with defined roles and
responsibilities, role-based logins and audit trails for all processes – beneficiary identification, transaction
management system, funds flow, claims payment etc. Further, all pre-authorisation and claims transactions
are carried out on-line basis for efficiency and complete transparency.
The process of pre-authorisation has been designed such as to ensure maximum efficiency while avoiding
abuse and fraud. Minimum requirements for claims investigation and medical audit have been laid down.
The tendency of health care providers to overcharge, bill extra and other related issues have been taken
care of by introducing all-inclusive package rates. However sufficient flexibility has been given to treat
patients requiring medical management and the list for procedures shall be enhanced as more experience
August 27, 2018, laying down detailed strategy, processes, systems and manpower for anti-fraud both at
National Health Agency Tollfree - 14555 set up on 24x7 basis for facilitating beneficiary reporting and
feedback
Whistleblower Policy has been adopted at the NHA level and shared with States for adoption on a similar
pattern
Capacity building workshop for fraud control and medical audit organised for SHAs, ISAs and Insurance
partners
Fraud Investigation Manual released for uniform and effective process, data capture
Monitoring and analysis of utilisation trends done through regular MIS and dashboards, watching abuse
Top analytics firms shortlisted for carrying out ‘proof of concept’ for triggering suspect transactions and
entities through rule engines and artificial intelligence layer on top of Transaction Management System
Mobile App – Kaizala app is being customised for field investigations and medical audit, test deployment
underway
Procedure specific documentation and checklist being developed for controlling abuse and leakages,
Adjudication guidelines and capacity building programme for SHAs, ISAs to be rolled out
Watch and action against fake websites, Mobile Apps providing misleading information or collecting money
NHA has a “Zero Tolerance” approach towards Fraud and Abuse under PMJAY. Towards this end, the
National Anti Fraud Unit (NAFU) has been set up with the primary responsibility for prevention, detection and
NAFU works closely with State Ant Fraud Units (SAFU) in order to ensure the effective implementation
of the Scheme, free from any fraudulent/ abusive activity from any entity involved in PM-JAY implementation such
Develop, review and update the national anti-fraud framework and guidelines based on emerging trends;
Provide mentoring support to states in setting up and institutionalising their in-state anti- fraud efforts;
Liaise with the national IT team / agency to ensure that the IT platform is periodically updated with fraud
Set up Forensics practice for detection and triangulating fraud/abuse related data with the overall service
Provide evidence-based insights to states on trends emerging from state-specific fraud data analytics;
Handle all fraud related complaints that the NHA may receive directly and liaise with the states from any
Establish whistle blower mechanism, public disclosure guidelines, and other deterrent measures.
Grievance Redressal
Grievance redressal system is designed to address grievances of all PM-JAY stakeholders based on
the principles of natural justice while ensuring cashless access to timely and quality care remains uncompromised.
A three-tier Grievance Redressal Committee structure has been set up at National, State and district levels for this
purpose. The CEO of NHA will be the Chairperson at the National level while the CEO of SHA will chair the State
Grievance Redressal Committee. The District Magistrate or an officer of the rank of Additional District Magistrate
shall be the Chairperson of the District Grievance Redressal Committee. These committees will track and monitor
the grievances and its status, collect additional information from parties involved, facilitate hearings, review
records, adjudicate and issue orders on grievance and ensure compliance of committee orders.
The aggrieved parties can submit grievances through offline (letter) or through an online portal
(https://cgrms.pmjay.gov.in) developed by NHA. Other communication channels like telephone call, fax, e-mails,
and SMS are also accepted for registering a grievance. The National Call Centre (14555 / 1800 111 565) is also
integrated to the Grievance Portal for addressing grievances received through the call-centre. The committee can
also register grievances based on social media or public forums findings/reports. Based on predefined criteria,
grievances will be handled either by the respective individual/organisation who is responsible to take action or by
the committees at an appropriate level. But at any level, the grievance should be addressed within 30 days of
receipt. The right to appeal for any party is valid for 30 days from the date of the decision. Non-compliance with the
decisions of the committee within another 30 days will also attract a penalty for the defaulter. The online portal has
the provisions to designate and track grievances to respective officials and monitor compliance with the alert
system.
Call Centre
One of the important aspects of one of the world’s largest government-supported health schemes of
the size and complexity as that of PM-JAY is to ensure that entitled beneficiaries of the programme can reach out
to know the details of the scheme, have recourse to raise a query or a grievance, seek information and support at
any time during day or night, especially during hour of need. If the profile of beneficiaries includes a sizeable
population which is rural based, even less educated and less aware, the mechanism needs to be further simplified
and made easily accessible, involving least effort and no expense. Therefore, a National Helpline – 14555 was set
up by then National Health Agency on August 24, 2018 – which is operating 24x7 since the launch and has
answered more than 42 lakh calls since inception. The call centre is manned by 300 plus trained agents who work
round the clock to manage the calls and further plans are in offing to expand capacity. All major regional languages
The Helpline is toll-free which means that the caller does not incur any call charges, the same are
borne by NHA. Operating on 24x7x365 basis, the call centre provides services/information to the beneficiaries
such as details about the scheme – coverage, benefits, how and where to avail benefits, name and address of
empanelled hospitals etc. Besides beneficiaries, other stakeholders like hospitals, Arogya Mitras and field
The call centre is also engaged in outbound calling and more than 3 lakh outbound calls have been
made to beneficiaries for collecting their feedback post discharge from hospital, to know their experience, whether
any difficulty faced during the process, etc. Outbound calls are also made to hospitals to help them complete
application for support, hand-holding and training for providing services to PM-JAY beneficiaries and to encourage
Convergence
Convergence between National Health Authority (NHA) and Employee’s State Insurance
Corporation (ESIC)
The National Health Authority (NHA) has entered into a partnership with the Employee’s State
Insurance Corporation (ESIC). This synergy between Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB
PM-JAY)and Employees State Insurance Scheme (ESIS) will create an ecosystem wherein ESIC beneficiaries will
The convergence between PM-JAY and ESIC is a landmark initiative for the development of health
systems in the country. This will leverage the presence of an established network of quality services providers
under PM-JAY alongside fixed health benefit packages, thereby standardising services across schemes. Further, it
will create higher demand for health services at ESIC empanelled hospitals that may be currently underutilised.
This will support in improvement of infrastructure and facilities of such facilities, via utilisation of funds reimbursed
under PMJAY.
In the initial phase, a pilot is being conducted in Ahmednagar, Maharashtra and Bidar, Karnataka
wherein ESIC beneficiaries of these districts will be able to access PM-JAY services in PM-JAY empanelled
hospitals. The beneficiaries will be eligible for all 1,393 secondary and tertiary packages under the scheme and the
initiative will be scaled up to 102 districts with a plan of eventually extending coverage across the country.
Beneficiaries of ESIC can use their ESIS card to access free treatment at AB PM-JAY empanelled
hospitals.
Similarly, beneficiaries of AB PM-JAY can use their PM-JAY card to access free treatment at ESIC
empanelled hospitals.
For more information beneficiaries can call ESIC tollfree number: 1800 112 526/ 1800 113 839