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About RSBY

 

Rashtriya Swasthya Bima Yojna (RSBY) has been launched by Ministry of Labour and Employment, Government of India to provide health insurance coverage for Below Poverty Line (BPL) families. The objective of RSBY is to provide protection to BPL households from financial liabilities arising out of health shocks that involve hospitalization.

Beneficiaries under RSBY are entitled to hospitalization coverage up to Rs. 30,000/- per year for most of the diseases that require hospitalization. Government has even fixed the package rates for the hospitals for a large number of interventions. Pre-existing conditions are covered from day one and there is no age limit. Coverage extends to five members of the 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 Government pays the premium to the insurer selected by the State Government on the basis of a competitive bidding.
 
For people living below poverty line, illnesses not only represent permanent threats to their income earning capacity, but in many cases it could result in the family falling into a debt trap.

When the need to get the treatment arises for poor families they often ignore it because of lack of resources, fearing wage loss due to which they wait till the last moment, when it’s too late. Even if they do decide to get the desired health care, it consumes their savings, forces them to sell their assets and property or cut other important spending like children’s education. Alternatively, they have to take on huge debts.

Ignoring the treatment may lead to unnecessary suffering and death while selling property or taking debts may end a family’s hope of ever escaping poverty. These tragic outcomes can be avoided through a health insurance which shares the risk of a major health shock across many households by pooling them together. A well designed and implemented health insurance may both increase access to healthcare and may even improve its quality over time.

In year 2012-2013, following four insurance companies are providing the services

 

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