Prime Minister Narendra Modi This is because while the central government is looking at capping its share of costs of the Rs 5-lakh insurance cover at Rs 1,000-1,100 per year per family, the costs have already crossed this in the small number of states where a limited insurance model is being used. In most states, no insurance companies will be used; instead, the costs of treatment will be paid out of a If the costs paid out to hospitals are greater than the Centre\/ state government contributions, the losses will have to be shared between them; in the insurance model, any extra payouts are borne by the insurance\/reinsurance company. In states like Rajasthan and Chhattisgarh where some form of free health insurance is already offered (see graphic) the claims ratios are already over 100%, making fraud mitigation critical. Some states like Gujarat and Chhattisgarh are offering a Though this has not been finalised, most states are expected to hire third-party administrators to help administer the scheme within the The bid for Chhattisgarh PSU health insurers bid more The winning bid of Rs 1,100, though, means insurance costs have risen quite a lot since Rajasthan Costs for payouts of over Rs 50,000 will have to be paid out by the trust separately. In the case of Gujarat, the Iffco Tokio bid the highest at Rs 2,712 per family.