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Indian state terminates contract with insurance firms on account of piled up health insurance claims

The state government of Gujarat, India has terminated the contracts with two insurance companies on account of pending health insurance claims worth Rs 472.2 crores (1 crore = 10 million). The two insurance firms contracted to process claims for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PMJAY) and the Mukhyamantri Amrutam (MA) schemes in Gujarat failed to achieve the baseline Key Performance Indicator for Turn Around Time. Due to payment delays, several hospitals in the state stopped accepting PMJAY-MA beneficiaries. 

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