Chandigarh – In a landmark move to reshape public healthcare access, Punjab Chief Minister Bhagwant Mann announced a universal cashless health insurance cover of ₹10 lakh per annum per family, under the expanded Mukh Mantri Sarbat Sehat Bima Yojana. This makes Punjab the first Indian state to offer such a comprehensive coverage, encompassing all 65 lakh families in the state.
The announcement, made on July 8, positions the northern state as a front-runner in implementing universal health coverage (UHC) principles in India.
From Partial Coverage to Full Protection
Until now, Punjab’s health insurance network covered around 45 lakh families, through two schemes:
- Ayushman Bharat (Central) – 16 lakh families
- Sarbat Sehat Bima Yojana (State) – 29 lakh families
Both provided up to ₹5 lakh coverage annually. Under the new scheme, an additional ₹5 lakh top-up will be added, taking the total to ₹10 lakh per family at no cost to the citizen.
“No resident in Punjab will have to pay out of pocket for serious treatments anymore,” Mann declared.
The enhanced scheme covers all government hospitals and empanelled private facilities, ensuring seamless access to critical care services.
Strategic Implication for Healthcare Industry
This bold initiative opens significant avenues for:
- Private hospitals seeking empanelment and higher utilization
- Health insurance TPA and tech players enabling digital claims and authentication
- Pharma companies, especially in chronic and specialty segments, whose drugs may now be more accessible via institutional care
- Diagnostic labs and tertiary care providers experiencing volume surge as financial barriers drop
The scheme is expected to improve early diagnosis, drive better adherence to treatment, and enhance patient inflow across the public-private ecosystem.
Fiscal Backing & Rollout Plan
The Punjab government has allocated ₹778 crore in its 2025–26 budget to fund the initiative. The universal insurance scheme will officially go live from October 2, 2025, according to AAP national convener Arvind Kejriwal, who was also present at the announcement event.
“This is what should have been done 50 years ago,” said Kejriwal. “Universal health care must be a constitutional right, and Punjab is leading the way.”
Building Towards Universal Health Care in India
For public health stakeholders, this marks a significant paradigm shift. While Ayushman Bharat has been the national benchmark, Punjab’s model pushes the envelope further by:
- Expanding the coverage amount
- Including every family, not just the socio-economically vulnerable
- Creating equal access across private and public institutions
Mann credited AAP’s governance philosophy, placing health, education, power, water, and infrastructure at the top of the policy agenda.
“We’re putting people first—this scheme isn’t just insurance, it’s financial security against medical disasters,” Mann emphasized.
Takeaway for Industry Stakeholders
Healthcare professionals, pharma companies, hospital administrators, and med-tech providers should view this as a pivotal moment:
- A new state-led UHC model may emerge to complement or even challenge the Centre’s Ayushman Bharat
- Empanelment, compliance, and EHR readiness will become critical for providers
- Pharma and device procurement may rise as demand for quality, reimbursable care grows
This initiative also sets the stage for replicable models in other states, potentially triggering a wave of state-level healthcare innovations in India.