The Tamil Nadu government has extended the New Health Insurance Scheme, 2021, for its employees by another year, from July 1, 2025, to June 30, 2026. The scheme, which was set to expire on June 30, 2025, provides health insurance coverage to government employees and their families. The insurance cover is capped at ₹5 lakh for families of all insured employees, with an additional ₹5 lakh for specified illnesses. The extension of the scheme is as per the existing terms and conditions of the agreement with the United India Insurance Company Limited.
However, the State coordinator of the Contributory Pension Scheme (CPS) Abolition Movement, P. Frederic Engels, has raised concerns about the clarity of the government order (G.O.) issued by the Finance (Health Insurance) department. He pointed out that it is not clear if employees who have exhausted their original cover within the block period of four years are eligible for an additional ₹5 lakh cover during the next one year.
Engels also criticized the scheme, saying that despite being designed to provide cashless treatment, most employees who have claimed health insurance have had to incur significant expenses out of their own pockets. He argued that if the extended health insurance cover does not provide additional cover for one year, employees would be paying for a cover they may not be able to benefit from.
The scheme was initially launched in 2021, with an annual premium payable by the government of ₹3,240 + GST per employee per annum for a block period of four years. The premium was recovered from employees at ₹300 per month. In December 2021, the government extended the cover to dependent children of government employees without any age restriction, with an additional premium of ₹20 + GST per family per annum. The insurance company has agreed to extend the scheme for another year, following a request from the Director of Treasuries and Accounts. The extension is expected to benefit government employees and their families, but concerns about the scheme’s effectiveness and clarity remain.