Health insurance is the inadequate source of financing for individuals or households to improving health care utilization, decreasing health care expenditure and reducing the poverty.

The objective is to access the coverage of health insurance schemes among wealth quintiles of households in Punjab, Northern state of India.

The data is extracted from the unit level records of the 71^st round of National Sample survey office (NSSO, 2014) for this study. A stratified two-stage sampling design was adopted during the study. For analysis purposes, data is extracted for Punjab state of north and whole states of India. Study covered the individuals who enrolled in any health schemes, monthly household consumption expenditure and Out of Pocket (OOP) expenditure incurred on pre-post natal care, delivery ailment, illness in 15 days and hospitalization in 365 days. Total 65932 households and 3,33,104 individuals covered for all states where 1529 households and 7797 individuals covered in Punjab. Chi-square test for trend used to find the significance of wealth quintile among insured households. The result reveals that only 15.1% population are covered by any health insurance schemes in India where Punjab (5.8%) reported enrolment respectively. Urban showed more enrolment in any health insurance in all states than rural area in Punjab. Richest quintile showed more enrolment in insurance and incurred excess of expenditure on health care expenditure. Since very less population are covered by health insurance schemes and much of expenditure incurred on health care. Study concluded that reducing high health care expenditure and poverty among households, government should maximize the coverage of health schemes in among all states of India.