The Indian parliament's Standing Committee on Health and Family Welfare has recommended increasing the insurance coverage under the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) from INR500,000 to INR1,000,000 per family per year.
The scheme, which was launched in 2018, is administered and funded by the Indian federal government and provides cashless secondary and tertiary healthcare services to eligible families through a nationwide network of empanelled public and private hospitals.
The Standing Committee’s proposal, which is a part of the Committee’s 172nd report, says the increase is necessitated due to rising healthcare costs and growing concerns that the current coverage is no longer adequate for many life-saving treatments.
According to the Committee, the cost of treating serious illnesses like advanced cardiac surgeries, organ transplants, cancer immunotherapy and other specialised secondary and tertiary procedures have increased considerably over the years. It said the current limit of INR500,000 often falls short for complex procedures.
The healthcare expenses, when the treatment involves these specialised areas, can easily exceed the current insurance limit, forcing many families to spend large amounts from their own pockets despite being covered under the scheme.
According to industry sources, healthcare expenses have steadily increased due to advances in medical technology, newer therapies, prolonged hospital stays, and the growing burden of chronic diseases.
According to official data available, till June 2026, over 435.2m individual Ayushman Cards have been issued under the scheme. The scheme targets a base of more than 550m individuals above the age of 70 years across the nation.
The committee said increasing the insurance cover to INR1,000,000 would offer better financial protection and reduce catastrophic health spending. The Committee members also felt that the proposal would particularly benefit economically vulnerable households that often delay or avoid treatment because of financial constraints.