Modicare Scheme Yojana (Ayushman Bharat Yojana Program), Modi Healthcare or Medicare Scheme


Modicare Scheme Yojana (Ayushman Bharat Yojana Program), Modi Healthcare or Medicare Scheme | Namocare Health Protection Scheme

As per the Union Budget 2018-19, world’s biggest health care scheme will soon be starting in the nation. Modicare Health Insurance will provide health protection benefit to 10 Cr families in rural areas which states 50 Cr people will get benefitted from the scheme.

Modicare health care scheme

Launch Details

On Thursday, 1st February 2018, Union Finance Minister Shree Arun Jaitely has made an announcement about the scheme. It has said that the scheme will probably launch on 2nd October 2018.

Eligibility Criteria

  • According to the social-economic census data collected in the year 2011, people who are not only belonging to poor category, but termed as ‘deprived’ in the census data will be the primary beneficiaries of the scheme.
  • Around 50 Cr people from 10 Cr families across the rural areas of the nation will be benefitted from this huge health care insurance scheme. Beneficiaries need to link their aadhaar number with the scheme at the time of registration.
  • According to the eligibility criteria there is no scheduled family size. That means families consist of any number of members can register under the scheme.
  • It has been said that beneficiaries will get free health checkups anywhere across the nation in government as well as private hospitals under this largest scheme.


As per the scheme, estimated premium for the scheme will be Rs. 1100/- to Rs. 1200/-. Each family would have to pay only this much amount per year to get benefit of Rs. 5 Lac per year for each family under Modicare Health Insurance Scheme.

Health Cess

Health cess has been started by the FM in the recent Union Budget 2018. This will be levied on tax payers to raise funds for this health care scheme. According to the ministry 1% Health Cess will be added to the tax burden for the tax payers to encourage the scheme. Additional Rs. 11,000 Cr will be expected to receive from this health cess in a year. Tax payers who fall under any of the income tax slabs will have to pay this amount from next fiscal year.


Probably there will be 3 phases in this scheme. 1st phase would start once the scheme will launch officially. By the end of June all sort of documentation and research will expected to be completed. As per the reports by the end of April, packages will be set and reviewed. The phase may start from 15th August as well. However as of now the date is set as 2nd October 2018, as mentioned above.

Budget Allocation

As per the central government this scheme will be funded by both Central and State governments. 60% of the total budget will be carried out by the central while the remaining 40% will be borne by the respective state governments.

Niti Aayog has estimated that central government might bear cost of Rs. 12, 000 Cr per year for the scheme. At the first phase, to implement the scheme the government would be needed 50% of the total estimated central government budget for Modicare health Scheme. That means nearly Rs. 5000 Cr to Rs. 6000 Cr would be needed in the 1st year of the project.

As per the calculations government would be able to raise Rs. 12, 000 Cr per year through premium amount paid by the beneficiary families. Also Rs. 11, 000 Cr would be raised through Health Cess in a year. However as of now no fixed budget allocation has been mentioned by the central finance ministry for this scheme.

According to many experts the scheme is ‘too good to be real’. Implementing such huge project in India with such mammoth budget may affect the economy adversely. Though nothing has been confirmed yet but the burden on government as well as tax payers seem to be huge for this scheme.