Your point, though accurately describes most government run hospitals, misses the crucial piece of information: This insurance is for Private run hospitals not

Your point, though accurately describes most government run hospitals, misses the crucial piece of information: This insurance is for Private run hospitals not government run hospitals (which is free anyways). Quoting from the article: If passed by the Indian Parliament and properly funded, the new program would be a vast expansion of health coverage, allowing people to visit the country’s many private hospitals for needs as varied as cancer treatment and knee replacements. Although government-run hospitals are theoretically free for everyone, the waits are long, quality is poor and corruption is endemic.