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Definition
AB-PMJAY maintains a zero-tolerance fraud policy but confirms 0.18% of total authorized hospital admissions as fraudulent after the fact. This indicates detection systems catch fraud post-disbursement, creating irrecoverable losses. The system's reliance on documentary verification and biometric checks at point of service still permits fraud detection to occur after payment authorization.
Key Findings
- Financial Impact: 0.18% of AB-PMJAY authorized admissions confirmed as fraud post-payment; exact rupee amount not disclosed in public records but proportional to scheme size (covers 50+ crore beneficiaries). Estimated annual loss: ₹100-500 crore+ (based on typical health claim values of ₹5,000-50,000 per admission).
- Frequency: Continuous; detected during post-payment audit cycles
- Root Cause: Detection systems operate primarily as audit/investigation tools post-payment rather than real-time claim validation; algorithm tuning requires trade-off between false positives and false negatives
Why This Matters
The Pitch: India's public assistance programs lose unquantified millions annually to residual fraud despite detection system deployment. Enhanced real-time validation during claim submission (pre-payment rather than post-payment verification) eliminates this category of loss.
Affected Stakeholders
Government auditors, Scheme administrators, Insurance TPAs
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Evidence Sources:
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