What is AYUSH treatment in group health insurance? Benefits, coverage & eligibility

A few months ago, Sumit, an employee at a Bengaluru tech firm, found himself constantly fatigued. Doctors couldn’t pinpoint a cause. Frustrated with endless tests and prescriptions, he turned to Ayurveda, something his grandmother had always recommended. After a few months of Panchakarma and herbal therapy at a certified center, his energy levels returned, sleep improved, and stress reduced.

He went back to work, healthier and happier but his ₹40,000 bill wasn’t covered by the company’s group health insurance.
When he asked HR why, the answer was: “We’re not sure AYUSH is included.”

Sumit is not alone.

Today, 1 in 2 Indians use AYUSH systems like Ayurveda, Yoga, and Homeopathy for chronic illnesses, stress, and preventive care, according to a 2024 government survey. As these treatments gain mainstream trust, employees are now asking a new kind of question:
“Is AYUSH covered under our group health insurance plan?”

And it’s not just curiosity,  it’s expectation. With 77% of Indian households using Ayurvedic products (PwC report), wellness is getting deeply personal, and employees want insurance that reflects this shift.

In this blog, we explore what AYUSH treatment means, how it's being included in group health insurance, what’s covered, and what HR leaders should keep in mind.

What does AYUSH mean?

AYUSH full form is Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homeopathy, five traditional systems of medicine that focus on natural, holistic healing. These practices are deeply rooted in India’s cultural and medicinal heritage and have been used for centuries to treat both chronic and lifestyle-related conditions.

Today, these systems are gaining renewed relevance due to rising interest in preventive care, wellness, and alternative therapies. To support this growing demand, the Government of India has established the Ministry of AYUSH, which formally regulates and promotes these treatment systems across the country.

Let’s break down the components of AYUSH full form for better understanding:

1. Ayurveda

One of the world’s oldest medical systems, Ayurveda aims to balance the body’s three doshas like Vata (air), Pitta (fire), and Kapha (earth):

• Herbal remedies and oils
• Panchakarma detox therapies
• Dietary and lifestyle changes

Ayurveda is commonly used for managing stress, digestive issues, joint pain, and chronic fatigue.

 2. Yoga & Naturopathy

While Yoga focuses on physical postures, breathing techniques, and meditation, Naturopathy promotes self-healing using the elements of nature like water, air, earth, and sunlight.

• Therapies include hydrotherapy, mud baths, detox diets, and fasting.
• Effective in managing lifestyle disorders like obesity, anxiety, insomnia, and hypertension.

 3. Unani

Unani medicine is based on ancient Greek principles and focuses on maintaining balance among the body’s four humors: blood, phlegm, yellow bile, and black bile.

• Treatments include herbal medicines, cupping, massage, and dietary regulation.
• Often used for skin conditions, digestive issues, and hormonal imbalances.

4. Siddha

Originating from Tamil Nadu, Siddha is one of the oldest holistic systems known to humanity.

• Relies on the use of herbs, minerals, and metals along with diet and yoga.
• Popular in South India for treating arthritis, respiratory illnesses, and chronic pain.

5. Homeopathy

A widely practiced system globally, Homeopathy is based on the principle of “like cures like.” It uses minute doses of natural substances to trigger the body’s healing response.

• Common for allergies, migraines, hormonal issues, and children’s health.
• Highly individualized like two people with the same condition may receive different remedies.

Popular AYUSH brands & hospitals

Trusted AYUSH brands in India:

• Patanjali – Ayurvedic and yoga-based FMCG brand
• Himalaya – Herbal wellness products and medicines
• Dabur – Ayurvedic health supplements and tonics
• Baidyanath – Traditional Ayurveda formulations

AYUSH hospitals and centers:

• Arya Vaidya Sala, Kottakkal (Kerala) – Pioneer in Ayurveda treatment
• SDM Ayurveda Hospital, Udupi – NABH-accredited Ayurveda hospital
• Patanjali Yogpeeth, Haridwar – Offers integrated Ayurveda and Yoga care
• NIMHANS, Bengaluru – Offers Yoga-based mental health therapies

Are companies offering AYUSH treatment to employees?

Yes, especially after the IRDAI’s mandate (effective April 1, 2024), all health insurance policies must offer AYUSH treatment options. Some companies now include AYUSH in their group health insurance and Employee wellness programs

What’s covered in AYUSH under group health insurance?

As AYUSH treatments gain popularity among working professionals, many insurers have begun including them under Group Health Insurance. However, the coverage is currently focused on specific conditions and settings.

Here’s what is generally included:

1. In-patient AYUSH hospitalization

AYUSH coverage under group health insurance typically includes only in-patient treatments, meaning the employee must be formally admitted to a government-recognised AYUSH hospital.  

Covered expenses usually include:

• Room charges during hospitalization
• Doctor consultation and treatment fees
• Nursing charges
• Cost of AYUSH medicines used during treatment
• Diagnostic tests or procedures, if required as part of treatment
• Pre- and post-hospitalization expenses (in some policies, up to a fixed number of days)

2. Minimum 24-Hour hospital stay

To be eligible for reimbursement, the patient must be hospitalized for at least 24 hours even if the treatment is natural or herbal in nature.

3. Recognized AYUSH facilities only

The treatment must be taken at:

• A government-recognized AYUSH hospital, or
• An NABH (National Accreditation Board for Hospitals) accredited AYUSH facility

Example:

An employee suffering from chronic fatigue chooses to undergo a 7-day Panchakarma detox therapy at an NABH-accredited Ayurvedic hospital. Since the treatment involves overnight stay and meets the 24-hour hospitalization requirement, the costs can be claimed under their group health insurance  plan provided the policy includes AYUSH coverage.

What’s not covered under AYUSH in group health insurance?

1. Outpatient Treatments (OPD): Most group health plans do not cover AYUSH treatments, medicines, or therapies taken on an outpatient basis (i.e., without hospitalization).
2. Wellness Spas or Unregistered Centers: Treatments received at Ayurvedic spas, wellness retreats, or non-accredited clinics are not covered even if they offer traditional therapies.
3. Over-the-Counter Herbal Products: AYUSH claims do not include costs of self-purchased Ayurvedic or Homeopathic medicines unless prescribed as part of an approved hospitalization.
4. Non-Medical Expenses: Supplements, massage oils, yoga classes, or dietary products used outside a prescribed treatment plan are excluded.

Eligibility criteria for AYUSH claims

For a successful claim under the AYUSH benefit in group health insurance, employees must meet the following conditions:

• Age requirements: Individuals aged 18 to 65 years are eligible.
• Minimum 24-Hour Hospitalization:
  The treatment must involve in-patient admission for at least 24 hours. Day-care or home-based treatments are generally not eligible.
• Recognized AYUSH Hospital:
  The treatment must be conducted in a government-recognized or NABH-accredited AYUSH hospital. A simple clinic or unregistered setup won’t be accepted.

Benefits of AYUSH coverage for employees

 1. Holistic & preventive care options

AYUSH treatment often focuses on preventing illness before it starts, rather than just curing symptoms. This is particularly useful for managing lifestyle-related issues like stress, obesity, fatigue, and hormonal imbalances.

 2. Lower treatment costs

Compared to allopathic hospitalizations, AYUSH treatments are often more affordable, helping employees save money while receiving effective care.

 3. Personalized wellness choices

Employees increasingly seek personalized treatment plans. AYUSH allows individuals to choose therapies that align with their beliefs  whether it’s a naturopathy-based detox or Homeopathy for migraines.

 4. Support for chronic conditions

AYUSH is commonly used for long-term conditions such as:

• Arthritis and joint pain
• Irritable Bowel Syndrome (IBS)
• Chronic headaches or migraines
• Respiratory issues like asthma

Should HRs include AYUSH treatment in their group health insurance?

As employees become more conscious of their mental, physical, and emotional health, there’s a rising demand for holistic and preventive options. Adding AYUSH coverage to your group health plan helps meet this expectation and offers several strategic advantages:

Benefits for employers:

• Inclusivity: Respects and accommodates employees' cultural and personal health preferences.
• Preventive Health: Systems like Yoga and Naturopathy support stress reduction, weight management, and mental wellbeing leading to fewer sick leaves.
• Employee wellness programs: AYUSH inclusion reflects a progressive and people-first approach without drastically increasing policy costs.

Things HRs should keep in mind:

To make AYUSH a meaningful addition, HRs must also:

• Educate Employees: Clarify what AYUSH includes, what it doesn't, and how to make valid claims.
• Share a List of Approved Centers: Provide employees with a directory of NABH-accredited or recognized AYUSH hospitals to avoid confusion or claim rejections. Share it with your employees for easy reference when planning AYUSH treatments under your group health plan.

Conclusion

As modern workplaces evolve, so do the definitions of employee health and wellness. AYUSH treatment, once considered traditional or alternative, is now becoming mainstream, with more people relying on it for chronic care, stress relief, and preventive health.

Including AYUSH in your group health insurance plan isn’t just about expanding coverage , it’s about recognizing your employees’ diverse health choices and supporting them with meaningful, inclusive benefits.

Looking to include AYUSH treatment in your group health insurance?

Pazcare helps companies design comprehensive and customizable employee health plans  including AYUSH coverage.

Talk to our experts at Pazcare
Let’s build a benefits plan your team truly connects with.

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