Pradhan Mantri Jan Arogya Yojana

Why in news?

• Out of 27,000 hospitals empanelled for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY) since its 2018 launch, only 18,783 remain active, the latest health ministry data showed.

About Pradhan Mantri Jan Arogya Yojana: 

• It is the world’s largest health insurance/ assurance scheme fully financed by the government.
• 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.
• It provides a cover of Rs. 5 lakhs per family per year for secondary and tertiary care hospitalization across public and private empanelled hospitals in India.
• It provides cashless access to health care services for the beneficiary at the point of service, that is, the hospital.
• There is no restriction on the family size, age or gender.
• Benefits of the scheme are portable across the country i.e. a beneficiary can visit any empanelled public or private hospital in India to avail cashless treatment.
• The scheme is being implemented by the National Health Authority.

Q1) What is Insurance?

Insurance is a contract or agreement between an individual or an entity (the policyholder) and an insurance company (the insurer). In this contract, the policyholder agrees to pay a predetermined amount of money, known as the premium, in exchange for financial protection or coverage against specific risks or potential losses.

Source: One in three PM-JAY hospitals inactive since scheme’s launch