Cabinet Approves on Cashless Treatment of Poor, Free Treatment up to FiveLakh in India


The cabinet has stamped on the mission of providing cashless treatment upto five lakh rupees annually to 50 million poor people of the country India. After the cabinet meeting chaired by Prime Minister Narendra Modi, the way it is cleared that it will be implemented by this year. Along with this, the first ongoing National Health Mission has been extended for the next three years.

In fact, Finance Minister Arun Jaitley had announced two schemes under the “Ayushmann Bharat” in the Budget. Under this, 1.5 crore health centers are going to be opened in the entire country so that people can get medical facilities in local areas. But under this, the most ambitious scheme will be provided “free and cashless treatment” to 10 Crore families of the country up to five lakh rupees per year. This will also clear the way for poor families not to go to the expensive hospitals. According to the data available with the Policy Commission, about 5-6 Crore people go below the poverty line due to the treatment of serious diseases every year. This mission can prove to be great relief for those families.

Even if the cabinet approved it on Wednesday, the government has started preparations for this mission with the announcement of the budget. Under this, a draft of 1300 medical packages has been prepared on the basis of various diseases, their tests, medicines and the fees of doctors and hospitals. Along with this, insurance companies have been asked to prepare their proposal on the basis of this package and put it in front of the government. Not only that, the talks with the State Governments have been completed to implement this scheme and all states and Union Territories have given consent for this. The government’s attempt is to implement this scheme from August 15 this year. If there is any problem then it will be implemented by October 2. Government estimates that for cashless treatment upto five lakh rupees, an annual expenditure of Rs 1000-1200 per family will be borne. But the real cost of premium will be final only after the proposals of health insurance companies.

The Central Government will contribute 60 percent of the scheme, providing cashless medical facilities to nearly 40 percent of the country’s population, while the center’s contribution will be 90 percent in the North-East and the hill areas. Central Government will bear the full load of this scheme in the Union Territories. However, the states have been allowed to adopt a trust or insurance company in the implementation of this scheme. But states have shown interest in implementing this through insurance companies so far.


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Savi is a regular writer and social activist. She also writes for BBC, Huffington Posts and others.

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