“Madhya Pradesh launches a groundbreaking health insurance scheme, offering free treatment to all families. The initiative, rolled out in July 2025, provides up to ₹5 lakh annual coverage for secondary and tertiary care. Aimed at economically weaker sections, it ensures cashless treatment at empanelled hospitals, addressing rising healthcare costs and enhancing accessibility.”
Madhya Pradesh Rolls Out Universal Health Coverage for Families
In a significant move to bolster healthcare accessibility, the Madhya Pradesh government has introduced a comprehensive health insurance scheme in July 2025, ensuring free treatment for all families across the state. This ambitious initiative, aligned with the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY), offers an annual health cover of up to ₹5 lakh per family for secondary and tertiary care hospitalisation. The scheme targets economically weaker sections, aiming to alleviate the financial burden of medical emergencies.
The program builds on the framework of AB PM-JAY, the world’s largest government-funded health insurance scheme, which already covers nearly 550 million beneficiaries nationwide. In Madhya Pradesh, the scheme has been expanded to include all families, regardless of socio-economic status, marking a significant step toward universal healthcare. Eligible households receive an e-card, enabling cashless treatment at over 21,000 empanelled hospitals across India, including both public and private facilities.
A recent incident in Damoh highlighted the need for stringent oversight, as the National Human Rights Commission (NHRC) ordered action against Mission Hospital for exploiting the Ayushman Bharat scheme by charging patients for supposedly free procedures. The Madhya Pradesh government has responded by reinforcing monitoring mechanisms to ensure compliance and prevent such malpractices. Hospitals found violating the scheme’s rules face severe penalties, including de-empanelment and cancellation of registration.
The state has also integrated lessons from other regions, such as Bihar’s Chief Minister Jan Arogya Yojana, which extended coverage to ration card holders. Madhya Pradesh’s approach similarly leverages the National Food Security Act (NFSA) database to identify and enrol beneficiaries, ensuring no eligible family is left out. Awareness campaigns are underway to educate rural and urban populations about the scheme’s benefits, addressing initial gaps in public knowledge.
Healthcare inflation, averaging 10-12% annually, has made private insurance unaffordable for many, particularly the “missing middle” – households too affluent for subsidised schemes but unable to afford adequate private coverage. Madhya Pradesh’s initiative fills this gap, offering a safety net for medical emergencies. The scheme covers over 1,961 medical procedures, including cardiac surgeries, cancer treatments, and organ transplants, ensuring comprehensive care.
To enhance accessibility, the state has simplified the registration process. Families can apply offline at local hospitals and health camps, requiring minimal paperwork, a model inspired by successful rural outreach in other states. Additionally, the government is working to increase the number of empanelled hospitals in Madhya Pradesh, aiming to match Bihar’s target of 1,500 facilities by the end of 2025.
The scheme has already shown promise in reducing out-of-pocket healthcare expenses, which have dropped from 62% in 2014 to 38% in 2025, according to national data. In Madhya Pradesh, officials report positive ground-level feedback, particularly in rural areas, where families previously panicked over medical costs. The initiative is expected to benefit millions, fostering dignity and financial security for residents facing health challenges.
Disclaimer: This article is based on recent news reports and publicly available information from sources like The Hindu, Times of India, and Business Standard. Data is accurate as of July 4, 2025. Readers are advised to verify details with official government sources for the latest updates.