Medisep premium hike deferred as Kerala govt extends Phase 1 to January 31

The Kerala government has decided to extend the first phase of the Medisep health insurance scheme by one more month, allowing it to continue until January 31, Finance Minister K N Balagopal said on Tuesday. This will also delay the hike in premium announced by the government earlier. The decision comes as technical procedures required for rolling out Medisep Phase 2 are yet to be completed.

The state government has sanctioned ₹61.14 crore as premium to continue the Phase 1 scheme for an extended period of one month. Although orders had earlier been issued to implement Medisep Phase 2 from January 1, the transition has now been deferred due to delays in completing technical formalities.

In view of the extension, the government has directed Drawing and Disbursing Officers not to deduct the revised premium applicable under Medisep Phase 2 from salaries paid in January. This means government employees and pensioners will continue under the existing Phase 1 premium structure for January.

The revised premium rates under Phase 2 will come into effect only after the new phase is formally implemented, with further instructions to be issued separately by the government.

The monthly contribution will be increased from ₹500 to ₹810 during Phase 2, pushing the annual premium to ₹8,237, excluding GST. The revised rate will now come into effect from February 1, 2026, and the government will deduct the amount from the salaries of employees and pensioners.