This document summarizes the Indian government's strategies to reduce healthcare expenses, as outlined in response to Lok Sabha Unstarred Question No. 3347, answered on August 8, 2025.
The Ministry of Health and Family Welfare acknowledges that healthcare is primarily a state subject, with States/UTs bearing the main responsibility for cost reduction in both public and private hospitals. However, the central government implements several initiatives to support these efforts.
The Clinical Establishments (Registration and Regulation) Act, 2010, and the associated 2012 Rules, mandate that all registered hospitals (excluding those of the Armed Forces) display service rates in local and English languages. The central government provides financial and technical support to States/UTs to strengthen their healthcare systems. The Free Drugs & Diagnostics Service Initiative ensures the provision of essential medicines and diagnostic services free of charge in public health facilities.
Under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PMJAY), the Health Benefit Packages (HBP) have been revised and rationalized five times since the scheme's launch. The latest HBP includes 1961 procedures across 27 medical specialities.
The government has also launched e-Sanjeevani, a national telemedicine service, to provide affordable, technology-driven healthcare in rural and underserved urban areas. This is implemented through two variants: e-Sanjeevani AB-AAM (Ayushman Bharat-Ayushman Arogya Mandir) and e-Sanjeevani OPD.
Key Entities Referenced
HEALTH AND FAMILY WELFARE: The Union Ministry responsible for health-related matters.
LOK SABHA: The Lower House of the Parliament of India, where the question was raised.
THIRU ARUN NEHRU: Member of Parliament who raised the unstarred question.
SMT.ANUPRIYA PATEL: Minister of State in the Ministry of Health and Family Welfare who provided the answer.
The Clinical Establishments Registration andRegulationAct, 2010: An act enacted by the Government of India to provide for the registration and regulation of clinical establishments.
Ayushman Bharat Pradhan Mantri Jan Arogya Yojana: A national health insurance scheme in India, also referred to as AB PMJAY.
eSanjeevani: India’s national telemedicine service.
Ayushman Bharat Ayushman Arogya Mandir: A variant of the eSanjeevani telemedicine service.
GOVERNMENTOFINDIA
MINISTRYOFHEALTH AND FAMILYWELFARE
DEPARTMENTOFHEALTH AND FAMILYWELFARE
LOK SABHA
UNSTARREDQUESTION NO. 3347
TO BE ANSWEREDON08TH AUGUST, 2025
STRATEGIES TOREDUCE HEALTHCAREEXPENSES
3347.THIRU ARUN NEHRU:
Will the Minister of HEALTHANDFAMILYWELFARE be pleasedtostate:
(a) whether any national strategies are being implemented in view of the rising healthcare
inflation to reduce the cost of hospitalization and essential medical services in both public and
private hospitals inthe country;
(b) if so, the detailsthereof;
(c) the measures put in place to regulate pricing of surgeries, diagnostics and ICU services in
private hospitals;
(d) the manner in which the Government is strengthening public hospitals to reduce
dependenceon costlier private care inthe country;
(e) the steps taken by the Government to expand the coverage and reimbursement rates under
Ayushman Bharat andStateHealthInsurance Schemes; and
(f) whether there is any roadmap planned by the Government to promote use of generics, local
procurementandtelemedicine toreduce patientexpenses nationwide, if so, the detailsthereof?
ANSWER
THE MINISTER OFSTATE IN THE MINISTRYOFHEALTH AND FAMILY
WELFARE
(SMT.ANUPRIYAPATEL)
(a) to (d): ‘Health’ being a State subject, the primary responsibility to reduce the cost of
hospitalizationandessential medicalservices inbothpublic andprivate lieswith States/UTs.
Nevertheless, the Government of India (GoI) has enacted The Clinical Establishments
(Registration andRegulation)Act, 2010(CE Act) andnotifiedClinicalEstablishments (Central
Government) Rules, 2012 thereunder to provide for registration and regulation of Government
(except those of Armed Forces) aswell asprivate hospitals belonging torecognized systems of
medicine. Under the CE Act, for registration and continuation, every hospital is, inter-alia,
requiredtodisplay the rates chargedfor eachtype of service provided andfacilitiesavailablein
the localaswell asinEnglish language at a conspicuous place for benefitof the patients.Moreover, GoI provides financial and technical support to the States/UTs to strengthen the
healthcare systems. Under the Free Drugs & Diagnostics Service Initiative of GoI essential
drugs anddiagnosticsare providedfree of cost inthe public healthfacilities.
(e) Under Ayushman Bharat Pradhan Mantri - Jan Arogya Yojana (AB PM-JAY), the Health
Benefit Packages (HBP) have been revised and rationalised five times since the launch of the
scheme.The latest HBPconsists of 1961 proceduresacross 27 medical specialities.
(f) The GoI has launched eSanjeevani – India’s national telemedicine service to ensure
affordable, technology-driven healthcare in rural and underserved urban areas, which is
implemented in two variants viz., eSanjeevani AB-AAM (Ayushman Bharat-Ayushman
Arogya Mandir) andeSanjeevani OPD.
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