With PMJAY, about Rs. 20,000 crore will be pumped into the healthcare sector which will make it possible for medical infrastructure to improve even in smaller cities and towns.
Demand for healthcare is going to increase which will make the healthcare set-up even in smaller locations feasible. A sum insured of Rs. 5 lakh can give quality access to healthcare which, in turn, will improve life expectancy.
PMJAY will be a classic case of public-private partnership and it will have a domino effect on the entire healthcare landscape. It will lead to standardisation, treatment protocols and price discoveries, all of which will help retail health insurance too.
All of this may not play out immediately, but in the next 5-7 years, PMJAY will completely transform healthcare.