The Union Ministry of Health and Family Welfare has asked the Public Health Foundation of India (PHFI) to study the different health insurance models existing in the country and to suggest a workable common model, as different states were seeking financial support to their tailor-made schemes.

The step was taken after the Andhra Pradesh submitted a proposal to the Cabinet Secretariat for financial assistance of Rs.307 crore for implementation of the Rajiv Aarogyasri Health Insurance Scheme (RAS) for the benefit of families below poverty line.

A meeting of the Committee of Secretaries (CoS) discussed the issue and forwarded the proposal to the Planning Commission. However, the Plan panel informed that the Aarogyasri Scheme needed a comprehensive review and evaluation by an independent organisation.

In the wake of this, PHFI was asked to initiate a critical assessment of existing health insurance models including RAS and the State Governments were also asked to forward their schemes. The Planning Commission and Health Ministry would study this report before taking a final decision on extending assistance to the states, sources said.

“This Ministry is of the view that since Aarogyasri Scheme deals with tertiary care and is not in consonance with the objectives of National Rural Health Mission (NRHM), which focuses on primary and secondary health care, the funding would not be possible from the NRHM. However, this Ministry does not have any objection to the scheme if the expenditure on it is met through State Government’s own resources,” sources said.

Rajiv Aarogyasri is the flagship scheme of all health initiatives of Andhra with a mission to provide quality healthcare to the poor. The aim is to achieve “Health for All” in Aarogyandhra Pradesh (Healthy Andhra Pradesh state). In order to facilitate the effective implementation of the scheme, the State Government had set up the Aarogyasri Health Care Trust under the chairmanship of the Chief Minister.