National Health Protection Scheme in India (NPHS) - Explained in Detail

National Health Protection Scheme (NHPS)

Higher life expectancy has led to an increased risk of ailments and the chances of suffering from multiple illnesses increase as you grow older. However, the soaring medical costs for the past few years have made health insurance the need of the hour. Therefore, the National Health Protection Scheme (NHPS) was introduced in the Union Budget 2018 to provide financial assistance and strengthen the healthcare system.

The Ayushman Bharat Yojana or the Pradhan Mantri Jan Arogya Yojana Scheme (PMJAY) was previously known as the NHPS Scheme. The Ayushman Bharat Scheme is the largest government initiative to support vulnerable families in India. Here is everything you must know about Ayushman Bharat Yojana or the erstwhile NHPS scheme in India.

What is the National Health Protection Scheme?

The Ayushman Bharat NHPS or the Pradhan Mantri Jan Arogya Yojana (PMJAY) focuses on maternal as well as child services. It prioritizes women, senior citizens, and children of India. Under the Ayushman Bharat NHPS, the Indian citizens are offered health coverage of Rs. 5 Lakh. Moreover, it covers over 50 crore residents of India with affordable medical services.

The prime objective of the Ayushman Bharat NHPS is divided into two categories. Take a look below to understand the diversified objectives of the plan.

Objectives of the National Health Protection Scheme

• To decrease the out-of-pocket expenditure of every resident of India.

• To provide the citizens with quality medical services as well as medications.

Before enrolling for AB-NHPS in India, you must know the numerous features of the scheme to make an informed decision in the future. So, let’s look at the features of Ayushman Bharat Yojana.

Salient Features of NHPS Scheme

• It covers the primary healthcare needs of the beneficiaries by transforming sub-centres and primary health centres into Health and Wellness Centers

• It offers coverage to the vulnerable and poor population of India and covers 1,393 medical procedures

• The NHPS scheme enables the beneficiaries to choose from a public hospital and empanelled private hospitals as per their convenience and requirements

• It consists of the current health sponsored programs like Rashtriya Swasthya Bima Yojana (RSBY) and Senior Citizen Health Insurance Scheme

Why Should You Opt for the NHPS Scheme?

• The out-of-pocket medical expenses account for 62.6% of the total healthcare expenditure in India, which is reported to be the highest in the world

• In India, public health expenditure was 1.28% of the GDP in the fiscal year 2018, which is quite low in comparison to many other nations in the world

• The NHPS scheme in India can ensure extensive healthcare coverage to more than 10.74 crores vulnerable and poor families that form the bottom 40% of the Indian population

• The government health insurance plan aims to help mitigate high expenditure on healthcare which forces nearly 6 crore Indians into poverty every year

Advantages of the National Health Protection Scheme

• National Health Protection Scheme or NHPS in India provides the beneficiaries with a definite cover of ₹5 lakh every year

• The beneficiaries can avail the cashless benefits either in public hospitals or empanelled private hospitals

• The cashless benefits offered by the scheme include the investigation, pre- and post-hospitalisation expenses as well as any pre-existing disease

Who Benefits Under NHPS?

• The NHPS scheme aims at covering over 10 crore poor and deprived rural families

• It targets the recognised occupational categories of urban worker’s families like sweepers, peons, delivery persons, and so on

• It covers every member of the family irrespective of their age and the size of the family

• All eligible families listed in the SECC database are covered under the NHPS policy

How Will NHPS be Implemented?

• The NHPS scheme offers flexibility to various states to choose their mode of implementation of the plan.

• Ayushman Bharat National Health Protection Mission Agency can establish and co-ordinate the mission at a national level with ease.

• State Health Agency is established at the state level or the union territory level. SHA is a new entity to achieve the main purpose of the scheme.

• While the Central Government bears 60% of the health insurance premium, the remaining 40% is shared by the State Government.

• The generated funds are moved to the SHAs through secured accounts by the AB-NHPS.

Apart from NHPS, the RSBY scheme provides financial assistance to needy families as well. The minor similarity between the two plans confuses a majority of beneficiaries. So, let’s take a look at the difference between the two policies:

National Health Protection Scheme (NHPS) Vs Rashtriya Swasthya Bima Yojana (RSBY)

Conclusion

To sum up, AB-NHPS is a well-governed healthcare program with promised benefits for the poor. Moreover, NHPS channels the universal aim of healthcare in the right direction. The Government of India strengthens the country’s health sector with the help of NHPS.

Furthermore, to benefit from such a government scheme, you can head over to the official NHPS website to learn more about the NHPS registration process. In case you aren’t eligible under any such government health plans, you can opt for health insurance on Finserv MARKETS and avail extensive coverage at an affordable premium rate! 

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