Challenges of Rasthryia Swasthya Bima Yojana (RSBY) in West Bengal, India: An exploratory study

Abstract

This study reviews the economic viability of the Rashtriya Swasthya Bima Yojana (RSBY), India's landmark health insurance program for below poverty line (BPL) populations in West Bengal state of India. It addresses the issue through in-depth analysis of literature, national and state level data, and a number of key stakeholder interviews. The study argues that the market failure conditions of this insurance model will continue to perpetuate losses for not only the state, but also for insurance companies, unless they adjust on a continuous basis for profit by raising the premium rate. This will further deplete state budgets for health care affecting the viability of the scheme in the long run.

Keywords: India; Rashtriya Swasthya Bima Yojana (RSBY); West Bengal; health insurance; market failure.