Kerala: Govt not to withdraw entire premium for govt employees to obtain MEDISEP coverage

First Published Feb 7, 2024, 10:21 AM IST | Last Updated Feb 7, 2024, 10:21 AM IST

Thiruvananthapuram: The government decided not to revoke the mandate to pay the entire premium beginning in 2022 for new government employees to obtain MEDISEP coverage. Despite concerns from service organizations, the government has not decided to review the directive. The organizations want to have a thorough discussion before signing the MEDISEP agreement next year.

The MEDISEP scheme aims to offer cashless medical care with coverage up to Rs 3 lakh per year. From July 2022, for three years at Rs 500 per month, Rs 18,000 will be deducted from the salaries of government employees as MEDISEP premiums. However, on the 16th of last month, the Finance Department ordered that the new entrants should also pay Rs 18,000. The order stated that this amount should be reduced equally from the first salary. That means even if he joins the job now, he has to pay the dues from 2022 onward. The MEDISEP contract, which was signed for three years, will expire in June next year. Even if you join the job a month before that, you have to pay the full premium even if you don't get any benefits. The service organizations have come forward, alleging that this is extortion from government employees.

Despite the employees' protests, the government believes the order cannot be altered. Oriental Insurance receives Rs 550 crore in premiums each year. Over 20 months, insurance payments totaled more than Rs 1100 crore. The government has determined that it constitutes an additional obligation in the current situation. The deal, which started in July 2022, will expire next year. There is a need for all employee concerns to be addressed before signing a new contract.

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