Thu Mar 06 16:16:55 UTC 2025: ## Karnataka’s Ayushman Bharat Scheme Faces Funding Shortfall, Rate Revisions Delayed
**Bengaluru, March 6, 2025** – Karnataka’s Ayushman Bharat Arogya Karnataka (AB-ArK) scheme is facing challenges due to delayed rate revisions for treatments and a funding shortfall from the central government, Health Minister Dinesh Gundu Rao revealed in the Legislative Assembly today.
Rao stated that the rates for treatments in empanelled hospitals haven’t been revised since 2018, citing the significant financial burden on the state exchequer. The state contributes approximately 90% of the scheme’s cost, while the central government provides only 10%. This disparity is further highlighted by the fact that while the agreed sharing ratio between the Centre and State should be 60:40, the actual ratio is closer to 25:75 due to the state covering the expenses of 1.12 crore families, compared to the Centre’s funding for only 69 lakh families.
The state is also owed ₹36.58 crore from the Centre, as per the agreed 60:40 sharing ratio. However, the central government has yet to release these funds. Furthermore, the state has requested additional support from the Centre for extending the AB PM-JAY scheme to senior citizens, with 15.12 lakh AB-ArK beneficiary families including elderly members. The lack of funding and the outdated rate structure raise concerns about the future of the healthcare scheme’s effectiveness and accessibility in Karnataka.
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