To make providing healthcare more cost-effective under Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), by Government and Marketplace (GeM), the government is seeking to lower prices of medical devices and implants. AB-PMJAY is Narendra Modi’s government’s flagship scheme, also called Modicare, and is the biggest fully-funded medical insurance scheme in the world. The system provides coverage for secondary and tertiary treatment hospitalization for up to a maximum of 5 lakhs per individual per year for over 10,74 crore disadvantaged eligible households (about 50 crore recipients). PMJAY provides the recipient at the point of service with cashless and paperless access to services. Public hospitals are already allowed to use GeM. Medical device manufacturers in India and their re-sellers are classified on GeM and provide discounted goods, whether directly or through their approved dealer network, based on the specified payment terms. The industry has claimed that as a government subcontracted service, only private hospitals impaneled under PM-JAY may be allowed to procure under GeM. However, the market looks forward to a centralized purchase and said the manufacturers will treat PMJAY as the most preferred purchaser and serve their deepest discount rates, as they would for a single large national public healthcare tender, even though the individual purchase order will be relatively small. Officials of the industry have indicated that vendors will be ready to offer such impaneled hospitals the ability to purchase their products at discounted rates below MRP, even for those patients being handled on the same premises that are not covered under the PM-JAY scheme, but some other healthcare plan or patient-owned charges.