The government on Thursday decided to redesign the Universal Health Insurance Scheme and make it exclusive for persons and families below the poverty line.

The revised premium would be Rs 165 for individuals, Rs 248 for a family of five and Rs 330 for a family of seven, without any reduction in benefits, Finance Minister P Chidambaram said presenting the General Budget in Parliament today.

To offset the reduction in premium, he proposed to enhance the premium subsidy from Rs 100 at present to Rs 200 for an individual, Rs 300 for a family of five and Rs 400 for a family of seven.

Observing that the cost to the exchequer will be Rs 40 crore (Rs 400 million) a year, Chidambaram said the number of people insured will rise to about 10 lakh (1 million).

The minister also proposed to introduce the Group Health Insurance Scheme through public sector non-life insurance companies.