Congress MP Shashi Tharoor has formally requested the Indian government to reassess the funding arrangement under the Ayushman Vay Vandana initiative. He highlighted that the current 60:40 funding split between the Centre and states could impose an undue financial strain on regions such as Keralam, which has a significant ageing population.

Tharoor’s concerns were voiced in the Lok Sabha under Rule 377, reflecting the disproportionate effect that the existing framework may have on states with a greater number of elderly citizens. He clarified his viewpoint in a social media update, stating that his submission was tabled the previous day.

According to Tharoor, the Ayushman Vay Vandana scheme is intended to extend health insurance coverage to senior citizens aged seventy years and older, yet it continues to be governed by the existing 60:40 funding ratio.

Proposal for a New Funding Mechanism

The Congress representative has called for the establishment of a financing approach that adequately acknowledges the demographic distinctions among states. Tharoor pointed out that the Centre’s financial support is limited to a defined ceiling per beneficiary family, necessitating that states bear costs that exceed this limit.

He expressed that this situation could exacerbate fiscal pressures on states where the elderly population constitutes a larger share of their demographics. In particular, Keralam stands out due to its high proportion of senior citizens, who typically need more regular and expensive medical interventions.

Tharoor urged the Union Finance Minister to reconsider the current funding strategy. He emphasised the importance of devising a system that ensures states with ageing populations are not left to manage an inequitable share of the financial load associated with implementing this health programme.

Impact of the Ayushman Vay Vandana Initiative

The Ayushman Vay Vandana scheme was expanded in October 2024, enabling health coverage of Rs 5 lakh annually for all senior citizens aged seventy years and above, regardless of their socio-economic status. This extension is expected to cover approximately six crore elderly individuals from around 4.5 crore families across the nation.

As reported by the Ministry of Health and Family Welfare, by December 31, 2025, over 96.73 lakh Ayushman Vay Vandana cards had been issued throughout various states and Union Territories. Furthermore, 10.33 lakh hospital admissions costing Rs 2,154.37 crore had reportedly been sanctioned under this initiative.

Tharoor also underscored the necessity of factoring in the elevated healthcare usage linked to ageing populations when determining the fiscal responsibilities between the Centre and states. He contended that a revised approach to funding is essential to maintain the viability of health services for the elderly in states with significant senior citizen populations.

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