Ayushman Bharat Yojana (ABY), also known as Pradhan Mantri Jan Arogya Yojana (PMJAY), is a revolutionary initiative by the Government of India to provide health coverage to the economically weaker sections of society. Launched in 2018, ABY is considered the world’s most extensive government-funded healthcare program, targeting over 10 crore families for financial protection against catastrophic health expenditures. The scheme offers up to Rs. 5 lakhs per family annually for secondary and tertiary care hospitalisation, covering various medical procedures and treatments. It’s a step towards achieving Universal Health Coverage (UHC), ensuring that quality healthcare is accessible to all citizens, irrespective of their socio-economic status.

Crowdfunding in India has emerged as a significant method of raising funds for various projects, causes, and business ventures. It involves collecting small amounts of money from many people, typically via online platforms. This method has seen a rise in popularity due to the ease of access to the internet and the ability to reach a broad audience. Crowdfunding in India is multifaceted, with legal forms including donation/social lending, pre-order, and reward crowdfunding, while equity-based crowdfunding remains illegal. The market for crowdfunding in India is projected to grow, reflecting the increasing trust and interest of the public in supporting diverse initiatives.

This blog explores how crowdfunding can complement the Ayushman Bharat Yojana. Crowdfunding can serve as an additional layer of support for healthcare financing, particularly for expenses not covered by ABY or those not eligible for the scheme. It can also aid in raising funds for healthcare innovations and community health projects that fall outside the purview of ABY. By analysing the synergy between ABY and crowdfunding, we can understand the potential for a more inclusive and comprehensive healthcare ecosystem in India.

The healthcare sector in India has witnessed significant transformations, with innovative financing mechanisms like crowdfunding emerging as a supportive force for healthcare initiatives. This synergy is particularly evident when examining the relationship between crowdfunding and the Ayushman Bharat Yojana (ABY), India’s flagship health insurance scheme aimed at providing financial protection to the most vulnerable citizens.

Ayushman Bharat Yojana (ABY)

Ayushman Bharat Yojana & Crowdfunding

History and Implementation

Ayushman Bharat Yojana, also known as Pradhan Mantri Jan Arogya Yojana (PM-JAY), is a revolutionary initiative launched by the Indian government in September 2018. It was conceived as a response to the growing need for a comprehensive healthcare system that could cater to the needs of the country’s vast population, particularly the underprivileged. The scheme’s inception was influenced by the findings of the Global Burden of Disease Study and the alarming fact that many Indians were pushed into poverty due to out-of-pocket medical expenses.

Key Features Of ABY

ABY is distinguished by its ambitious health insurance coverage, offering up to INR 5 lakhs per family per year for secondary & tertiary healthcare services. This coverage extends to the poorest 40% of Indian families, targeting nearly 50 crore beneficiaries. The eligibility criteria are based on the Socio-Economic Caste Census (SECC) 2011, ensuring that the scheme reaches those in dire need of financial support for healthcare.

Crowdfunding In Healthcare

Concept & Growth of Medical Crowdfunding

Medical crowdfunding has emerged as a powerful tool in India, enabling individuals to raise funds for medical treatments that are otherwise unaffordable. Platforms like ImpactGuru have facilitated the collection of substantial amounts for healthcare-related campaigns, highlighting the potential of crowdfunding in bridging the gaps in healthcare financing.

Role of Crowdfunding in Universal Healthcare Systems

In systems with universal healthcare coverage, crowdfunding has found a niche in financing alternatives not covered by insurance funds. It serves as a complementary mechanism, allowing patients to seek financial support for treatments that fall outside the purview of traditional healthcare schemes.

A. Potential Of Crowdfunding To Support Healthcare Initiatives

Crowdfunding has emerged as a powerful tool in supporting healthcare initiatives. It offers a platform for individuals and organisations to raise funds for medical expenses, research, and innovation in healthcare. This method of fundraising harnesses the collective power of a large number of people, typically via the Internet, to gather small contributions that cumulatively add up to substantial amounts.

Understanding Crowdfunding In Healthcare

At its core, crowdfunding for healthcare is about tapping into the generosity and support of the community. It allows patients, researchers, and healthcare startups to present their stories or projects to the public, detailing the need for financial support. This approach can be particularly beneficial when traditional funding methods are insufficient or unavailable.

Benefits Of Crowdfunding For Healthcare

1. Access to Funds: Crowdfunding platforms provide an avenue for those who might not have access to traditional forms of healthcare financing, such as bank loans or grants, especially in countries without universal health coverage or for treatments not covered by insurance.

2. Support for Research and Innovation: Healthcare startups and researchers can use crowdfunding to test, develop, and scale innovative medical solutions. It’s a way to validate ideas and gain the financial backing to bring transformative healthcare advancements to market.

3. Community Engagement: Crowdfunding campaigns often create a sense of community around a cause. Backers contribute financially and emotionally, sharing campaigns within their networks and raising awareness for specific healthcare challenges.

4. Democratization of Funding: Crowdfunding democratises the funding process by allowing anyone to contribute. It enables individuals to support healthcare ventures that resonate with their values, regardless of location or financial status.

Challenges & Considerations

While crowdfunding presents many opportunities, it also comes with challenges. Campaigns must be compelling and trustworthy to attract donors. There are also ethical considerations, such as ensuring the funds are used transparently and as intended. Additionally, regulatory aspects must be navigated carefully, particularly when funding medical treatments that require approval from health authorities.

The Role Of Crowdfunding In Shaping Healthcare

Crowdfunding has the potential to shape the future of healthcare by fostering innovation, supporting patient care, and facilitating access to medical treatments. It bridges the gap between medical needs and the resources required to meet them, enabling the public to directly contribute to healthcare solutions that can have a lasting impact.

In conclusion, crowdfunding stands as a testament to the collective spirit of society, where small contributions can lead to significant changes in the healthcare landscape. It empowers individuals to take action, supports the development of cutting-edge medical interventions, and provides hope for those needing care and support.

B. How Crowdfunding Can Address Gaps In Ayushman Bharat Yojana

Ayushman Bharat Yojana, also known as Pradhan Mantri Jan Arogya Yojana (PMJAY), is a flagship initiative by the Indian government aimed at providing health insurance coverage to over 50 crore beneficiaries, primarily targeting the economically weaker sections of society. The scheme promises to cover medical expenses up to ₹5 lakh per family per year, ensuring that the underprivileged receive the necessary medical treatments without financial strain.

However, despite its ambitious scope, there are challenges that the scheme faces, such as gaps in funding and coverage limitations. This is where crowdfunding can play a pivotal role.

Crowdfunding emerges as a potential solution to bridge these gaps. Crowdfunding is a method of raising funds from many people, typically via the Internet, to support a cause or project. Here’s how crowdfunding can complement the Ayushman Bharat Yojana:

Here’s how crowdfunding can address some of the gaps in Ayushman Bharat Yojana:

1. Supplementing Costs: Not all medical expenses may be covered under PMJAY. Crowdfunding can help patients raise funds for treatments that are not covered or for expenses beyond the ₹5 lakh cap.

2. Bridging Funding Delays: There have been instances where private hospitals have faced delays in reimbursement from the government under the scheme. Crowdfunding can provide immediate financial support to healthcare providers, ensuring that there is no disruption in the treatment of patients.

3. Expanding Coverage: Certain procedures and medications may not be covered by insurance. Crowdfunding allows patients to seek financial help for these specific needs.

4. Empowering Patients: Crowdfunding gives patients more control over their healthcare journey. They can seek funds for their preferred treatments, even if those are not the most economical options available under PMJAY.

5. Raising Awareness: Crowdfunding campaigns often go viral, raising awareness about specific health conditions and the associated costs, which can lead to broader support for healthcare funding.

6. Encouraging Community Support: Crowdfunding builds a community around the patient, providing financial and moral support, which is crucial during recovery.

7. Addressing Emergency Gaps: In emergencies or unforeseen medical conditions that may not be covered under the scheme, crowdfunding can provide rapid financial assistance to the affected individuals or families.

8. Encouraging Innovation: Funds raised through crowdfunding can be directed towards innovative healthcare solutions, such as telemedicine or mobile health units, which can enhance the reach and efficiency of Ayushman Bharat, especially in remote areas.

9. Promoting Transparency: Crowdfunding platforms often have mechanisms to track the utilisation of funds, offering greater transparency to donors. This can build trust and encourage more people to contribute, knowing exactly where and how their contributions are being used.

C. Policy Recommendations For Integrating Crowdfunding With Ayushman Bharat Yojana

To maximise the benefits of crowdfunding within the ABY framework, policy recommendations include establishing clear guidelines for crowdfunding activities, promoting transparency and accountability, and creating a supportive ecosystem that encourages ethical crowdfunding practices. Additionally, integrating crowdfunding platforms with ABY’s digital infrastructure could streamline the process, making it easier for beneficiaries to access and utilise funds raised through crowdfunding.

In summary, the synergy between ABY and crowdfunding represents a promising avenue for enhancing healthcare financing in India. By leveraging the strengths of both, it is possible to create a more inclusive and supportive healthcare environment that can address the diverse needs of the population.

D. Future Prospects For Ayushman Bharat Yojana And Crowdfunding Collaboration

The future prospects of Ayushman Bharat Yojana look promising as it has the potential to transform India’s healthcare landscape. It aims to reduce the financial burden on families due to healthcare costs, improve the quality and efficiency of healthcare services, and promote preventive healthcare measures. The scheme is expected to contribute significantly towards achieving the Sustainable Development Goal of universal health coverage by 2030.

Crowdfunding, on the other hand, is a method of raising funds from a large number of people, typically via the Internet, to support individual, community, or organisational projects. In healthcare, crowdfunding has emerged as a means to finance medical treatments, research, and innovation, especially for those not covered by traditional funding methods or insurance schemes.

The collaboration between Ayushman Bharat Yojana and crowdfunding could open new avenues for healthcare financing, particularly for treatments not covered under the scheme. This partnership can help pool resources for expensive medical procedures and innovative healthcare solutions and support patients with rare diseases or conditions that require therapies not included in insurance coverage.

Such a collaboration can also enhance community engagement and awareness about health issues, encouraging a culture of solidarity and support for those in need. It can democratise healthcare funding, allowing individuals to contribute directly to the well-being of others and foster a sense of collective responsibility towards public health.

In conclusion, integrating Ayushman Bharat Yojana with crowdfunding platforms could potentially lead to a more inclusive healthcare system where financial constraints are less of a barrier to accessing necessary treatments. It could also stimulate healthcare innovation by providing a platform for new ideas and technologies to receive the funding required to develop and succeed. The synergy between these two models of healthcare financing holds the promise of a more equitable and progressive healthcare ecosystem in India.