Date:01/04/2007 URL: http://www.thehindu.com/2007/04/01/stories/2007040105820600.htm

Andhra Pradesh

Health insurance scheme for entire A.P. soon

Special Correspondent

To help poor undergo medical care for serious ailments

MAHABUBNAGAR: Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy announced that `Aarogya Sri', a health insurance scheme for families living below the poverty line that he launched here on Saturday, would be extended to the entire State in two years.

Initially, the scheme is being implemented by the State Government on a pilot basis in Mahabubnagar, Anantapur and Srikakulam districts in association with the Star Health and Allied Insurance Company.

Addressing a public meeting to mark the launch of the scheme, Dr. Reddy said it was devised to help members of poor families undergo medical treatment for serious ailments like cancer, heart and kidney failure that cost Rs.1to 2 lakh. As they could not afford the expenditure, the families borrowed money and ended up selling their houses or fields to repay the principal and interest. There were instances of members of these families committing suicide.

"I have been moved by the misery of the households. Hence, we have thought of coming up with a health insurance scheme that does not put any financial burden on them," Dr. Reddy said.

He noted that poor people availed themselves of the services at Primary Health Centres and District Headquarters Hospitals for minor ailments but were forced to look to corporate hospitals for serious health problems at considerable expenditure.

Health Minister K. Rosaiah said the Centre was considering compensating the State Government for subsidising the scheme.