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Ministry to have no role in world’s largest health insurance scheme

New body will take management of Pradhan Mantri Jan Arogya Yojana(PMJAY) completely out of the health ministry’s remit

As the Pradhan Mantri – Jan Arogya Yojana (PM-JAY) completed its 100 days, the Union Cabinet on Wednesday approved the re-structuring of existing National Health Agency as “National Health Authority”. 

Through this decision, the existing society, “National Health Agency”, has been dissolved and its status now stands enhanced to that of an Authority. The National Health Authority shall have full autonomy, accountability and the mandate to implement PM-JAY through an efficient, effective and transparent decision-making process. PMJAY, launched by prime minister Narendra Modi in September last year is the most ambitious social sector plan of the NDA government providing health cover to 50 crore people.

Within 100 days of implementation of PM-JAY, 1.45 lakh e-cards have issued to the beneficiaries with more than 6.95 lakh beneficiaries having availed services under PM-JAY through a network of 16,157 empaneled

Welcoming the decision of the Cabinet, J. P. Nadda, the Minister for Health and Family Welfare observed that “the world’s largest healthcare scheme rightfully deserves the most efficient and effective governance structure with total accountability.” 

Dr. Indu Bhushan, Chief Executive Officer, NHA said: “We are humbled by the faith reposed by the Cabinet in according the status of an Authority to National Health Agency. We reaffirm our commitment to realise the ambitious vision of Hon’ble Prime Minister”. 

The existing multi-tier governance structure has been replaced with a Governing Board (GB) chaired by the Minister of Health and Family Welfare (MoHFW) with representation from the Government and domain experts.

The creation of the National Health Authority will lead to faster decision-making and more accountability and efficiency to ensure availability of quality services to beneficiary families through strategic purchase of healthcare services, preparation of list of health packages and their rates, robust fraud control and increase in private sector investment in healthcare.  

Within 100 days of implementation of PM-JAY, 1.45 lakh e-cards have issued to the beneficiaries with more than 6.95 lakh beneficiaries having availed services under PM-JAY through a network of 16,157 empaneled (and in process) hospitals, amounting to the tune of Rs. 924 crores.

Details of the decision

  • Through this decision, the existing society, “National Health Agency”, has been dissolved. Its status now stands enhanced to that of an Authority, the National Health Authority, which shall have full autonomy, accountability and the mandate to implement PM-JAY through an efficient, effective and transparent decision-making process. 
  • The existing multi-tier governance structure has been replaced with a Governing Board (GB) chaired by the Minister of Health and Family Welfare (MoHFW), Government of India. This will enable decision-making at a faster pace, required for smooth implementation of the scheme. Led by the Governing Board, NHA will have full functional autonomy. The GB of the Authority, in addition to the Chairperson (Minister of Health and Family Welfare, Government of India), will have 11 other members as under:
    • Chief Executive Officer, NITI Aayog, ex-officio;
    • Secretary, Department of Expenditure, Ministry of Finance, Government of India, ex-officio;
    • Secretary, Department of Health and Family Welfare, MoHFW, Government of India, ex-officio;
    • Chief Executive Officer (CEO) of the Authority;
    • Two domain experts from fields such as Administration, Insurance, Public and Private Health care providers, Economics, Public Health, Management etc. to be appointed by the Government; and 
    • Five Principal Secretaries (Health) of State Governments – one representing each of the five zones viz; North, South, East, West and North Eastern States on rotational basis.
  • All existing assets & liabilities (including the posts created) of the National Health Agency will be transferred to the National Health Authority.
  • The post of Joint Secretary (NHA/ Ayushman Bharat) will be transferred from Ministry of Health and Family Welfare to the National Health Authority.
MediBulletin Bureau
MediBulletin Bureau
A team of experienced and committed journalists. Working under guidance of Dr. O. P. Choudhury. You can reach us at: bureau@medibulletin.com
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