Governments all over the World today have come to accept the health of the people as a public responsibility. Health is a very significant and vital factor for the prosperity of a country. Article 47 of the Directive Principles of Indian Constitution points out that the basic responsibility of the state as the promotion of health and standard of living of its people. Health according to the Constitution of India is a state subject. The State Governments assisted by local bodies is responsible for providing health care facilities to its people. This results in different policies and programmes of health care in various states. Government of Andhra Pradesh launched the Rajiv Aarogyasri Health Insurance Scheme on 01-04-2007 in three backward districts ie., Mahaboobnagar, Anantapur and Srikakulam on pilot basis and it was subsequently extended to the entire state in phased manner to the Below Poverty Line families in 23 districts from 17-07-2008. Thus from the past seven years Rajiv Aarogyasri Scheme working in the state and provides health insurance to Below Poverty Line people, it is the right time to evaluate the scheme and to offer suggestions to improve its performance.