Best health insurance plans for people below poverty line

After the COVID-19 pandemic, we all know that medical care, especially for critical illness treatments, has become very expensive. While those with stable incomes can afford regular health insurance to protect themselves and their families. But the reality is very different for the poor in India who do not have access to basic amenities like food and shelter.

So, to make medical costs accessible during critical illness for the underprivileged or people below the poverty line, the Government of India has launched several health insurance schemes for people below the poverty line. 

Today, in this blog, we will discuss the best health insurance plans available for people below the poverty line or low-income individuals

• Universal Health Insurance Scheme (UHIS)
• Central Government Health Scheme (CGHS)
• Ayushman Bharat
• Rashtriya Swasthya Bima Yojana (RSBY)
• Aam Aadmi Bima Yojana
• Karunya Health Insurance Scheme
•  Mahatma Jyotiba Phule Jan Arogya Yojana

Difference between Regular health insurance plans  and Health insurance plans for people below the poverty line

Also Read: What are the Deductibles in Health Insurance?

Best Health Insurance Schemes for People below Poverty Line

Universal Health Insurance Scheme (UHIS)

It is one of the most popular health insurance programs launched by the government to cater medical needs of low-income individuals, both below and above the poverty line. Under this scheme, beneficiaries can claim up to a maximum amount of Rs 15000 for a single illness and added benefits such as maternity cover of Rs. 2,500 for normal delivery and Rs. 5,000 for cesarean delivery. The scheme also provides accidental cover for the main earning member of the family and offers coverage of Rs. 25,000. The premium for the scheme starts from Rs. 100 per annum.

Central Government Health Scheme (CGHS)

This scheme is designed to provide healthcare benefits to central government employees, both active and retired. Available in 71 cities across India, the scheme grants beneficiaries access to Wellness Centres and treatments under various systems of medicine, including allopathy, Ayurveda, Unani, Homeopathy, Siddha, and Yoga. The premium for the scheme is determined according to the employee's pay grade.

Ayushman Bharat

On the recommendation of the National Health Policy, the government launched the Ayushman Bharat Yojana to provide universal health coverage. This health plan, known as the Pradhan Mantri Jan Arogya Yojana (PMJAY), is designed to cater to people below the poverty line living in poor and vulnerable areas. In times of medical crisis, this plan offers coverage of up to ₹5 lakhs per family for an annual premium of just ₹30. The best part about this plan is that all pre-existing conditions are covered from day one.

Rashtriya Swasthya Bima Yojana (RSBY)

This health insurance scheme, launched for low-income individuals from the unorganized sector, covers laborers, workers, and their family members. It offers coverage of up to ₹30,000 per annum. By purchasing this health insurance scheme, policyholders benefit from cashless hospitalization and coverage for pre-existing diseases from day one. The best part about this scheme is that the government contributes 75% of the annual premium, while the beneficiary only needs to pay ₹30 as a renewal fee annually. The cost of the smart card and expenses related to administering the scheme are borne by the respective state governments.

Aam Aadmi Bima Yojana

This health insurance scheme offers personal accident and rural household coverage to individuals who do not own land. It caters to nearly 45 occupational groups, with the entire premium paid by the government. The coverage under the Aam Aadmi Bima Yojana is limited to one family member, who must be either the head of the family or an earning member. If the beneficiary dies naturally, the payout will be ₹30,000. In case of accidental death or permanent disability, the payout is ₹75,000, and for partial disability, the compensation is ₹37,500.

Karunya Health Insurance Scheme

This scheme has been launched by the Kerala Government to address the medical needs of low-income individuals suffering from critical illnesses such as heart ailments, kidney diseases, hemophilia, and more. It offers a maximum insurance coverage of ₹3 lakhs and also provides reimbursements if treatment expenses exceed the estimated amount. This scheme stands out from other government health insurance policies as the majority of the premium is funded by the state government through a lottery system, requiring beneficiaries to pay only a nominal amount.

Mahatma Jyotiba Phule Jan Arogya Yojana 

The Maharashtra Government introduced this scheme to cater medical needs of farmers and people living below the poverty line. The scheme covers hospitalization costs for all types of surgical procedures under 34 specialties. It comes with a sum insured of Rs 1,50,000 per family on a floater basis but can be enhanced to Rs 2,50,000 per family in case of a renal transplant. There is no waiting period in this scheme, providing coverage from day one. Moreover, the premium for this scheme is paid entirely by the Maharashtra Government.

Mukhyamantri Amrutum Yojana

The Mukhyamantri Amrutum Yojana is a health insurance initiative introduced by the Gujarat Government to support BPL families with their medical expenses. This scheme covers in-patient treatment, pre-hospitalization, post-hospitalization expenses, and transportation costs. It also includes coverage for critical illnesses like cancer, and liver and kidney transplants. Each family is insured for ₹3,00,000, which can be extended up to ₹5,00,000 for organ transplant procedures. Families with an annual income of up to ₹4,00,000 are eligible for this scheme. The best part is that the entire premium is funded by the state government, ensuring financial relief for those in need.

Also Read: PMJJBY and PMSBY: Decoding India's Essential Insurance Schemes

To sum up…

India has a major population living below the poverty line, often unable to afford health insurance. With the support of government-backed schemes, access to affordable healthcare is no longer a distant dream for these individuals. By taking advantage of these health insurance plans, the underprivileged can secure their health and financial future, ensuring that a medical emergency does not lead to a lifetime of financial hardship.