If you’re an Indian living in USA, understanding healthcare options can feel overwhelming. You’ve likely heard about Medicaid in America and Ayushman Bharat back home in India. But what’s the difference between these two programs? Which one is better? And most importantly, which program applies to you?
In this guide, we’ll break down everything you need to know about Medicaid and Ayushman Bharat in simple language. Whether you’re a new immigrant, a student, or someone planning to move to the US, this comparison will help you understand both healthcare systems clearly.
What is Ayushman Bharat?
Ayushman Bharat, also called Pradhan Mantri Jan Arogya Yojana (PM-JAY), is India’s flagship health insurance scheme. Launched in September 2018 by Prime Minister Narendra Modi, it’s the world’s largest government-funded health insurance program.
Key Features of Ayushman Bharat:
- Coverage Amount: Up to ₹5 lakh (approximately $6,000) per family per year
- Beneficiaries: Covers over 50 crore (500 million) Indians, primarily from economically weaker sections
- Free Treatment: Completely cashless and paperless treatment at empanelled hospitals
- No Restrictions: No limit on family size, age, or gender
- Wide Coverage: Covers 27 medical specialties including cancer, heart surgery, kidney transplant, and more
- Pre-existing Conditions: All pre-existing diseases covered from day one
- Senior Citizen Benefit: Since September 2024, all citizens aged 70 and above get coverage regardless of income
The scheme targets the bottom 40% of India’s population based on the Socio-Economic Caste Census 2011 data. It covers secondary and tertiary care hospitalization, including pre and post-hospitalization expenses.
What is the US Equivalent of Ayushman Bharat?
The closest US equivalent to Ayushman Bharat is Medicaid, though they work quite differently. Medicaid is a joint federal and state program that provides health coverage to low-income Americans, including families, pregnant women, elderly people, and individuals with disabilities.
Key Features of Medicaid:
- Coverage: Comprehensive medical coverage including doctor visits, hospital stays, prescriptions, and preventive care
- Eligibility: Based on income level, which varies by state
- Income Limits (2025): In expansion states, adults qualify if they earn up to 138% of the Federal Poverty Level ($21,597 for an individual, $44,367 for a family of four)
- State-Specific: Each state runs its own Medicaid program with different rules
- Cost: Free or very low-cost for eligible individuals
- Long-Term Care: Also covers nursing home care for seniors who meet financial requirements
Unlike Ayushman Bharat which targets specific economic groups, Medicaid eligibility depends on your income, assets, and state of residence. The program covers approximately 85 million Americans.
Does the US Have a Free Health Scheme Like India?
Yes and no. The US does have free or low-cost health programs, but the system works differently than India’s Ayushman Bharat.
Free Healthcare Programs in the USA:
1. Medicaid – For low-income individuals and families (free or minimal cost)
2. Medicare – For people 65 and older or those with certain disabilities (requires premium payments for most parts)
3. CHIP (Children’s Health Insurance Program) – For children in families earning too much for Medicaid but still needing help
4. Community Health Centers – Offer services on a sliding fee scale based on income
However, there’s a major difference: In the US, healthcare is not universally free like some aspects of India’s system. While India provides free basic healthcare at government hospitals to all citizens, the US requires either:
- Qualifying for government programs (Medicaid/Medicare)
- Purchasing private insurance
- Paying out-of-pocket
The US spends significantly more on healthcare (17% of GDP) compared to India (4% of GDP), yet not all Americans have equal access to free care.
Medicaid vs Ayushman Bharat: Key Differences
| Feature | Ayushman Bharat (India) | Medicaid (USA) |
|---|---|---|
| Eligibility Criteria |
• Based on SECC 2011 census data • Targets bottom 40% of population • No income proof if listed in SECC • Citizens 70+ eligible regardless of income (from 2024) |
• Based on income and assets • Must be U.S. citizen or legal resident • Income limits vary by state (~$2,901/month for individuals in 2025) • Asset limits apply to elderly & disabled • Must reside in the applying state |
| Coverage Amount |
• ₹5 lakh (~$6,000) per family per year • Covers 1,929 medical procedures |
• No fixed annual limit • Covers all medically necessary treatments • Dental, mental health & long-term care (varies by state) |
| Out-of-Pocket Costs |
• Fully free at empanelled hospitals • No co-payments |
• Mostly free or low cost • Small co-pays in some states ($1–$4) • No co-pay for emergencies or pregnancy care |
| Hospital Network |
• 31,000+ empanelled hospitals • Public + private network • Service only at approved hospitals |
• Must use in-network providers • Large network across the USA • Some providers may not accept Medicaid |
| Types of Care Covered |
• Focused on hospitalization • 3 days pre- & 15 days post-hospitalization • No routine OPD or preventive checkups |
• Routine checkups • Preventive screenings • Surgeries & inpatient care • Prescription drugs • Mental health services • Pregnancy & childbirth care • Emergency services • Long-term senior care |
| Application Process |
• Check eligibility at pmjay.gov.in • Visit nearest center with Aadhaar • Card usually issued same day |
• Apply via state Medicaid office or Healthcare.gov • Requires full documentation • Approval takes 45–90 days • Annual renewal required |
| Portability | • Valid across all Indian states |
• State-specific • Must reapply after moving states • Emergency care covered nationwide |
Which Healthcare System is Better?
This isn’t a fair comparison because both systems serve different populations with different healthcare infrastructures. Here’s an honest assessment:
Ayushman Bharat Advantages:
- Quick enrollment process
- Simple eligibility (no complex documentation)
- Completely free for beneficiaries
- No annual renewals
- Covers all family members
Ayushman Bharat Limitations:
- Limited to hospitalization only
- Fixed annual limit of ₹5 lakh
- Only works in India
- Quality varies across empanelled hospitals
- Long wait times at government hospitals
Medicaid Advantages:
- Comprehensive coverage (includes routine care)
- No annual coverage limit
- Higher quality of care and infrastructure
- Covers mental health and long-term care
- Access to advanced medical treatments
Medicaid Limitations:
- Complex eligibility requirements
- Lengthy application process
- State-specific rules create confusion
- Some doctors don’t accept Medicaid
- Must meet strict income and asset limits
- Not everyone in the US qualifies
Can Indians in the USA Use Ayushman Bharat?
Short answer: No, not while living in the USA.
Ayushman Bharat only covers treatment at hospitals within India. Even if you’re an eligible Indian citizen, you cannot use your Ayushman card for healthcare in America.
However, you can use Ayushman Bharat if you:
- Visit India for medical treatment (medical tourism)
- Plan to return to India permanently
- Need surgery or treatment during a visit home
Many Indians living abroad maintain their Ayushman eligibility and travel to India for planned surgeries because treatment costs are much lower, even with travel expenses.
Healthcare Options for Indians in the USA
If you’re an Indian living in the USA, here are your healthcare options:
1. Medicaid (if you qualify)
- For low-income legal residents
- Free or low-cost
- Apply through your state
2. Marketplace Insurance (Healthcare.gov)
- For those who don’t qualify for Medicaid
- Government subsidies available based on income
- Premium costs vary ($200-$600/month typical)
3. Employer-Sponsored Insurance
- Most common option for working Indians
- Employer pays portion of premium
- Usually comprehensive coverage
4. Student Health Insurance
- Required for international students
- Offered through universities
- Moderate coverage at reasonable cost
5. Private Health Insurance
- For those who can afford it
- Most comprehensive options
- Higher premiums ($400-$1,200/month)
Conclusion
Both Medicaid and Ayushman Bharat are lifeline programs designed to make healthcare accessible to millions. While Ayushman Bharat focuses on free hospitalization for India’s economically weaker sections, Medicaid provides comprehensive healthcare coverage to low-income Americans.
For Indians in the USA, understanding Medicaid eligibility is crucial. If you qualify, it offers excellent healthcare coverage without the financial burden. If you don’t qualify for Medicaid, explore other insurance options rather than going without coverage—medical bills in America can be financially devastating.
Remember, the American healthcare system is complex but navigable with the right information. Take time to understand your options, compare plans, and choose coverage that protects both your health and your finances.
Whether you’re just arriving in the USA or have been here for years, having proper healthcare coverage isn’t optional—it’s essential. Make informed decisions, stay covered, and prioritize your health wherever you are in the world.
Frequently Asked Questions (FAQs)
Q1. Can I have both Medicaid and Ayushman Bharat coverage?
Yes, technically you can maintain eligibility for both if you meet each program’s requirements. However, you can only use Ayushman Bharat in India and Medicaid in the USA. They don’t work together.
Q2. How long after moving to the USA can I apply for Medicaid?
You must be a lawful permanent resident (green card holder) for at least 5 years to qualify for Medicaid. Some exceptions exist for refugees, asylees, and certain humanitarian cases who may qualify immediately.
Q3. Is Medicaid only for the very poor?
No. While Medicaid does target low-income individuals, the income limits are reasonable. In expansion states, a family of four earning up to $44,367 annually can qualify. Some states also have “medically needy” programs for people with high medical expenses.
Q4. Will my Ayushman Bharat card expire if I live in the USA?
No, Ayushman Bharat cards don’t expire. If you remain eligible according to SECC 2011 data or are 70+ years old, your eligibility continues even if you live abroad.
Q5. What happens if I don’t qualify for Medicaid in the USA?
You should explore Healthcare.gov for subsidized marketplace plans. Depending on your income, you may receive government subsidies that make insurance affordable. Community health centers also offer sliding-scale fees.
Q6. Can I use Medicaid for medical tourism to India?
No. Medicaid only covers care within the United States and its territories. You cannot use Medicaid benefits for treatment in India or any other foreign country (except limited emergency care in bordering areas).
Q7. Which US states have the best Medicaid coverage?
States that expanded Medicaid under the Affordable Care Act generally offer better coverage. California, New York, Massachusetts, and Washington are known for comprehensive Medicaid programs. However, 40+ states now use similar income limits.
Q8. Does Medicaid cover dental and vision care?
It varies by state. Most states provide dental and vision coverage for children under Medicaid. For adults, coverage is limited in many states. Some states offer comprehensive dental benefits while others cover only emergency dental care.
Q9. Can senior citizens get both Medicare and Medicaid?
Yes. Seniors who qualify for both programs are called “dual eligibles.” Medicare covers most medical needs, while Medicaid helps pay Medicare premiums and covers services Medicare doesn’t, like long-term care.
Q10. How does healthcare cost in the USA compare to India?
Healthcare in the USA is significantly more expensive. A routine doctor visit costs $150-$600 in the US versus $7-$17 in India. Hospital stays are 30-40 times more expensive in America. However, the quality of facilities and technology is generally more advanced in US hospitals.
Need help determining your Ayushman Bharat eligibility or finding empanelled hospitals? Visit our Ayushman Card Hospital List for comprehensive resources and state-wise hospital information.
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