The Kerala government’s medical insurance scheme for state employees, pensioners and their dependents — known as MEDISEP — is set to enter its second phase from February 1, 2026, following final approvals from the state administration and resolution of earlier implementation delays, Finance Minister K.N. Balagopal announced. This rollout comes after the initial launch faced postponement due to contractual and premium issues late last year.
Under the new phase, the annual insurance coverage has been increased from ₹3 lakh to ₹5 lakh per beneficiary, broadening the range of treatments and procedures covered under the scheme and making it one of the more generous state-level health insurance programmes for government staff in India. The monthly premium has been set at ₹687, amounting to ₹8,244 annually for a covered employee or pensioner along with their eligible dependents.
MEDISEP Phase II also expands the treatment package list to include more medical and surgical procedures, bringing the total to over 2,500 packages and extending care options both in empanelled private and public hospitals across Kerala. In a major enhancement, procedures such as knee and hip replacements, earlier confined to government facilities, will now also be available at private hospitals under the plan. “Cashless inpatient treatment will be offered at all empanelled hospitals,” Balagopal said, adding that emergency care for accidents, heart attacks and strokes at non-empanelled hospitals will be reimbursed through the insurance provider.
The scheme maintains no age limit for enrolment, making it accessible to beneficiaries across age groups. A three-tier grievance redressal mechanism and a 24×7 support call centre are part of the new phase’s framework to assist policyholders. The government has also committed to publishing detailed lists of empanelled hospitals and package benefits on MEDISEP’s official portal to ensure transparency and ease of access for members.
Overall, the expanded scheme seeks to strengthen healthcare support for Kerala’s public workforce while easing out-of-pocket medical costs, aligning with state goals of enhanced social security and welfare for its employees.
