The programme so far guided by regulations needs a strong legal basis for its nation-wide expansion.
The legislation will also allow for insurance premium waiver for the poor and marginalised communities as outlined in the Social Health Security Programme (Operating) Regula-tions-2015.
According to Rule 11 of the Regulations, the government waives premium for persons identified as poor.
The rule mandates waiver of the premium for people living in abject poverty and 75 percent and 50 percent premium discount for the poor and marginalised, respectively.
The Cabinet has decided to issue identity cards to the 391,831 poor households identified in a survey.
The Poor Household Support Coordination Board Secretariat had finalised the list from 25 districts in the first phase.
A household of five has to pay an annual premium of Rs2,500 to get services worth up to Rs50,000.
For each additional member, Rs425 has to be paid for health services worth up to Rs10,000.