Proper health care is a universal human right. Increasing healthcare cost make it very difficult for poor people to access the even basic health care facilities. Most of the Indians live in rural area. Majority of them are too poor to afford health care services by their own pocket. These people cannot afford general health insurance policies. In this paper, we discuss health insurance schemes that have been started for these people. We also discuss the challenges these schemes have. We also suggest the steps that can be taken to improve the penetration and effectiveness of these schemes for the better health management of rural and poor Indians.