Every year about 150,000 people develop end stage kidney disease (ESKD) in India, most of whom die without receiving treatment. In 2008, the state of Andhra Pradesh started public funding for hemodialysis (HD). We evaluated the coverage pattern, cost of care and outcomes of patients treated under this scheme. Unique identifiers and billing codes for HD, vascular access and hospitalisation were identified from claims database to construct utilisation, cost and outcome for subjects from 2008 to 2012. Outcomes were classified as death, dialysis discontinuation and kidney transplantation. Costs of HD, vascular access, and hospitalizations were calculated. A total of 13,118 beneficiaries (1.36% of all claimants, mean age 44 years, 73% males) received HD during the study period. The number of people who received HD increased from 29.5 pmp in 2008-09 to 122.2 pmp in 2012-13. Of all patients, 10% died and 37% dropped out in first 6 months. Median time on HD was 170 and 198 days for females and males respectively (p=0.0059). Mortality increased with age and was higher in women and in public hospitals. The average per patient annual expenditure on HD was US$ 4,820. Costs of HD as a proportion of the total healthcare spend increased from 0.78% in 2008-09 to 5.15% in 2011-12. Progressive increase in uptake confirms a high unmet need for renal replacement therapy. High mortality and dropouts suggest the contribution of factors beyond user fees to outcomes. Insurance coverage does not address all inequities in access and the barriers to maintaining long term dialysis care.