KASP hit by yet another premium default

Karunya Arogya Suraksha Paddhati (KASP), State’s health insurance scheme that was launched in April with much fanfare, in alignment with Centre’s Ayushman Bharat, has run into rough weather yet again with the Government failing to meet its commitment to pay the premium to the insurance company on schedule.

On Thursday, Reliance General Insurance Company Ltd., is understood to have written to the Special Officer (KASP) that they would be forced to defer current and future payments for AB-KASP claims till the receipt of the pending premium.

RGIL has also informed the empanelled hospitals that on account of non-receipt of premium from the State Health Agency (SHA), it is constrained to put payments of eligible claims on hold and that the matter was “beyond the control of RGICL”.

Funds withheld

This time, however, the blame has to be laid at the door of KASP administration for its failure to pay the insurance premium to RGICL on time, despite receiving the funds from the Government. Sources at the Finance Department said that ₹254 crore had been released from the State Treasury to the account of the SHA on December 16 for paying the premium.

This amount is still being withheld by the KASP authorities for reasons unknown, while the Government had lost face once again for failing to meet its commitment with the insurance company. Enquiries with the SHA revealed that while they were in charge of the implementation of the KASP, the scheme’s finance side was being dealt by the Government directly and that funds to the insurance company was disbursed by the office of the Special Officer (KASP).

Nine months into the implementation of the KASP, the Government should have paid a premium of ₹620 crores plus (1st and 2nd instalments), out of the scheme’s total premium of ₹691 crores. In November too, the scheme had almost been run aground when KASP authorities unnecessarily held back ₹102 crores released from the treasury towards for paying premium for two more weeks.

Source: The Hindu