Thiruvananthapuram: The Kerala government has decided not to implement the (Ayushman) Vaya Vandana Yojana, a central health insurance scheme offering free treatment to all citizens above the age of 70, unless the Centre agrees to revise the proposed premium rates. This decision casts uncertainty over the insurance coverage of nearly 26 lakh elderly people in the state.

Kerala has proposed that the annual premium for the Vaya Vandana scheme be fixed at ₹3,250, with the central government funding 60% of the amount. However, the Centre insists on implementing the scheme at a much lower premium rate of ₹1,052, in line with the existing Karunya Arogya Suraksha Padhathi (KASP), Kerala’s state-run health insurance project.

From the first round of discussions, Kerala has been pressing for a premium hike, arguing that the current rate is insufficient to ensure comprehensive coverage. Although the Centre initially promised to examine the demand, no concrete response has been received despite several follow-up letters. The Vaya Vandana scheme, announced early last year, was officially launched by Prime Minister Narendra Modi on October 29.

In light of the Centre’s continued silence, Kerala has decided to focus on the Karunya health insurance scheme instead. People over 70 who belong to economically and socially backward groups already enjoy free medical treatment under KASP. In addition, the Karunya Benevolent Fund provides financial assistance of up to ₹2 lakh to families with an annual income below ₹3 lakh.

Given these provisions, the Kerala government argues that there is no need to extend coverage under Vaya Vandana to elderly individuals from economically well-off backgrounds, as this would involve bearing an additional financial burden.

Vaya Vandana Project

The (Ayushman) Vaya Vandana Yojana has been introduced with the objective of providing free medical treatment worth up to ₹5 lakh annually to all citizens aged 70 and above, regardless of their income. Age eligibility is determined based on Aadhaar details. Beneficiaries already covered under other central or state health insurance schemes are allowed to opt between the existing coverage and PMVVY to prevent duplication.