Govt may give health insurance firm extension

The state government is likely to extend its contract with United India Insurance Company Ltd, which is implementing its cashless insurance scheme, Deen Dayal Swashtya Seva Yojna (DDSSY) by a few more months. It’s likely to be extended till August as the government is unable to finalise a new bidder.

A source said that the directorate of health services floated a tender in March, and they received bids from two insurance companies. The lowest bidder quoted Rs 8,100 per family as premium, which the department found rather high. The existing scheme saw the state government pay a premium of Rs 2,800 per family. This delayed the finalising of the new scheme.

Under the new tender, not only did the number of interventions covered increase, but also the money paid for certain procedures. “There have been some changes in the scheme, but we can’t afford to pay so high a premium,” said a source.

The government’s liability on the account of this scheme is about Rs 80 crore a year, which would jump to Rs 300 crore if it accepted the increased premium of Rs 8,100 per family.