Retain costly health policy or use PMJAY coverage? Seniors have a tough choice
health insurance policy was due for renewal this month, he grappled with a common dilemma: should he continue paying ₹73,000 for a ₹2.75 lakh cover or instead rely on the government's Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), which is now extended to all senior citizens over 70 and offers ₹5 lakh of free coverage per family?
It's a question that is increasingly troubling senior citizens across India, as private health insurance premiums soar and government schemes promise substantial coverage, albeit with limitations.
The AB-PMJAY now covers all senior citizens over 70 regardless of income. The move is expected to benefit about 60 million senior citizens and 45 million families. Enrolment for the scheme is likely to begin soon.
«For many elderly individuals, like this 70-year-old retiree paying ₹75,000 annually for a modest sum assured, the cost of maintaining private health insurance is becoming burdensome,» said Mahavir Chopra of Beshak.org, an insurance broking platform. «With no income, a premium of this size is a significant financial strain. At the same time, the government's PMJAY scheme offers an alternative with ₹5 lakh in free coverage. However, they are caught between a rock and a hard place.»
While private insurance covers a wider range of hospitals, including leading chains such as Apollo, Max and Medanta which most people prefer, PMJAY limits patients to empanelled hospitals, mostly public healthcare facilities. People buying insurance have reservations about the quality of care
