Rs 10 Lakh Cover, Expansion To 60+ Age Group: Parliamentary Panel Proposes Key Changes To Ayushman Bharat Scheme

The Parliamentary Standing Committee on Health has proposed raising the coverage limit under the Ayushman Bharat insurance scheme to Rs 10 lakh per family.

The recommendation, made in report on demand for grants, highlights the need for higher coverage due to the "huge expenditure" associated with critical healthcare.

Currently, Ayushman Bharat provides Rs 5 lakh in insurance coverage per family to the poorest 40 per cent of the population.

Last year, the scheme was extended to all individuals aged 70 and above, regardless of their economic status.

To widen its reach further, the committee has suggested lowering the age criteria to 60 years.

“The Committee is of the view that age criteria of 70 years and above for Ayushman Vay Vandna Cards should be rationalised to 60 years and above irrespective of their socio-economic status for widening the coverage of the scheme in the better interest of common masses,” the report said, Indian Express reported.

The committee also flagged concerns over under-utilisation of allocated budget for the scheme.

According to the report, the budget for the scheme for FY24 was initially set at Rs 7,200 crore but was later reduced to Rs 6,800 crore, with actual spending standing at Rs 6,670 crore.

For FY25, the allocation was revised from Rs 7,300 crore to Rs 7,605 crore, but as of 9 January, only Rs 5,034.03 crore had been spent.

For FY26, the government has increased the allocation for the scheme to Rs 9,406 crore.

For FY26, the government has increased the allocation for the scheme to Rs 9,406 crore.

The report pointed out that such trends in fund utilisation suggest possible inefficiencies in disbursement or implementation bottlenecks.

"The Committee, therefore, recommends a thorough review of the fund release mechanisms to states/UTs,” the report added.

The higher budget allocation for FY26 is likely due to the scheme’s expansion to cover senior citizens and states like Odisha and Delhi signing up to the scheme.

The committee also recommended that allocation of funds to states should depend on their performance.

“The committee suggests that the release of funds be linked to the performance of states in terms of card creation, hospital admissions, and beneficiary feedback, ensuring that funds are directed to areas of greatest need and impact,” the report said.

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