Introduction to RSBY

The Ministry of Labour and Employment (MoLE) has recently launched a National Health Insurance scheme for Unorganised Sector Below Poverty Line (BPL) workers. The scheme,  called “Rashtriya Swasthya Bima Yojana” (National  Health Insurance Plan) is a Centrally Sponsored Scheme of the Government of India and aims to improve social security for the informal sector workers by providing health insurance cover. Central Government bears 75% cost of premium (for North Eastern States and J&K it is 90%) while State Govt. bear 25% (for North Eastern States and J&K it is 10%) of the cost. Beneficiaries have to pay a registration fee of Rs 30/- only per household per year. The scheme was started in late 2007 and is being taken up in a phased manner; all districts of the country are likely to be  covered  by March, 2013. The scheme aims to provide cashless treatment upto Rs. 30,000/- to BPL people in networked public and private hospitals, thus providing a choice to the informal sector workers in terms of selection of service providers. Government of India has also included maternity and new born care with effect from 2009-10.

RSBY is being implemented by the respective State Governments. They select an insurance company, through public tendering, which implements RSBY in the State. Both public and private insurance companies are free to bid for the tender.

RSBY is very different from other Government sponsored health insurance schemes in the past. Following features distinguish RSBY from similar initiatives in the past:

• Empowering the beneficiary –freedom of choice in terms of selection of public or private providers
• Information Technology (IT) Intensive – For the first time at such large scale IT is used for social development scheme. Rural areas every beneficiary family is issued a biometric enabled smart card containing identification particulars etc.
• Business Model for all Stakeholders – The scheme has been designed as a business model for a social sector scheme
• Safe and foolproof – use of smart card and processes designed for enrolment will minimize misuse. Use of Key Management System to minimise frauds.
• Portability – the smart card will be eventually valid across length and breadth of the country
• Cash less transactions for beneficiaries and paperless transactions for participating providers
• Paper less transactions for both providers and beneficiaries

For detailed information and related documents of the scheme please access Official website of RSBY - www.rsby.in