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If you or a family member avail of free medical treatment under the Ayushman Bharat scheme, this news is crucial for you. It is possible that the hospital where you plan to use your card is no longer part of this government scheme. In a major crackdown, the central government has taken strict action against hospitals involved in irregularities under the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY). A total of 2,359 hospitals across the country have been removed (de-empanelled) from the scheme due to violations of rules and fraudulent billing. Additionally, 1,200 other hospitals have been suspended.

**Alert for Patients**
Union Health Minister J.P. Nadda provided details of this entire action in a written reply in the Lok Sabha on August 7. This government move will directly impact the general public. Free treatment using the Ayushman card will no longer be available at hospitals that have been blacklisted or suspended. Therefore, if you are planning to get admitted to a private or government hospital, ensure you first check whether the hospital is currently registered under the scheme. The government has made it clear that those involved in irregularities will not be spared. So far, fines totaling ₹328.49 crore have been imposed on such hospitals, and FIRs have been registered in 29 cases.

**AI Technology Exposed the Fraud**
The government detected this large-scale fraud by hospitals with the help of Artificial Intelligence (AI) and machine learning. The National Health Authority (NHA) has developed a robust system to prevent fraud. Whenever a hospital uploads a fraudulent claim—such as duplicate billing for the same patient, misuse of identity, or billing for unnecessary medical tests—to the portal, the system triggers an alert within 24 hours. With the help of this technology, fraudulent claims are meticulously scrutinized before any payment is made. According to government data, this high-tech system has prevented the loss of ₹676.14 crore in public funds up to July 31, 2026.

**Rapid expansion of the scheme amidst enforcement actions**
Despite this major crackdown on corruption, the Ayushman Bharat scheme continues to expand. Data from the 2025-26 financial year shows that 3.75 crore new Ayushman cards were issued during this period, while hospital admissions were approved for 2.74 crore patients. The central government also released ₹8,438.27 crore to states to cover treatment costs. Uttar Pradesh leads the list, with 30.6 lakh patients treated and the state receiving ₹1,047.53 crore in central funds.

**Things to keep in mind before seeking treatment**
Under the Ayushman Bharat scheme, eligible low-income families receive free medical treatment worth up to ₹5 lakh annually. This coverage extends to over 1,900 types of medical conditions and surgical procedures. As of August 8, 2026, there are 38,437 hospitals empanelled under the scheme nationwide, comprising 20,363 government and 18,074 private hospitals. Consequently, there is no shortage of treatment options; however, it is advisable to check the hospital's status on the National Health Authority portal before visiting to avoid any last-minute complications.

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