Medisep Phase II: Premium Hike Fuels Beneficiary Anger

Kerala's flagship Medisep health insurance scheme has transitioned into its second phase, marked by a substantial increase in monthly premiums from Rs 500 to Rs 810. In its first phase, which concluded in early 2026 after a one-month extension, Medisep processed 10,89,791 claims, disbursing Rs 1,964.74 crore in coverage. The data highlights that complex and specialized treatments, particularly knee replacements costing Rs 37.06 crore, constituted the largest expenditure.

Despite the extensive utilization and significant government investment of over Rs 2,131 crore in premiums and GST for Phase I, the scheme faced considerable criticism. Over 1.16 lakh claims, valued at Rs 87.85 crore, were rejected, fueling dissatisfaction among employees and pensioners regarding cashless treatment access. A reserve fund for catastrophic illnesses was also exhausted prematurely, necessitating additional government releases.

As Phase II rolls out, concerns loom large about whether the increased premium will correlate with improved benefits or a resolution to persistent issues like private hospitals denying cashless services. Employees and pensioners express apprehension that the higher deduction from their salaries and pensions may not be matched by proportional enhancements in coverage or service quality, intensifying financial strain.