Kerala govt hikes Medisep monthly premium to Rs 810
THIRUVANANTHAPURAM: The state government has increased the monthly premium under the Medisep health insurance scheme for government employees and pensioners from Rs 500 to Rs 810. An official order to this effect was issued on Tuesday. The scheme will be implemented with effect from January 1, 2026. Employee organisations have protested the steep hike and demanded that the government contribute an equal share to the premium, instead of placing the entire additional burden on the staff. They have urged the government to reconsider the decision in view of the financial restraint on employees. The cabinet had earlier granted approval for the implementation of Medisep Phase-2 through Oriental Insurance Company. The annual premium has been fixed as Rs 8,237, excluding 18% GST, for the first policy period of 2026- 2027. This results in an increase of Rs 301 in the monthly deduction from their salary. The new premium shall be deducted from the salary for the month of December 2025 and from January 2026 of pensioners. Employee organisations argue that the revised scheme is unfair. The LDF government implemented the Medisep scheme in 2022, after discontinuing the medical allowance of Rs 500, said Secretariat Action Council Convenor M S Ershad. Now the premium has been increased to Rs 810 while the government contributes nothing. He also added that according to Kerala Government Service Medical Attendance Scheme, the government is duty-bound to safeguard the health of its employees. The opposition-backed organisations have demanded that the government contribute an equal share of the premium. They also claimed that many reputed hospitals are distancing themselves from the scheme due to low payouts and urged the government to either make the scheme optional or to enhance its contribution to make it more attractive to healthcare institutions. Pensioners have also expressed deep concern over the increase.
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