Bidding for selection of health insurance provider planned by TN government

A new health insurance scheme for the Tamil Nadu State Government employees under which the assistance provided will be doubled from what the employees receive under the existing insurance scheme has been decided to be launched by the Tamil Nadu Government.

A relief to all class of employees:

While marginally increasing the monthly subscription the employees pay for the health insurance cover the new scheme, will bring those employees receiving non-standard scales of pay and also employees of the local bodies, PSUs, statutory boards and state government universities under health insurance cover.

The Government has planned to invite competitive bidding for selection of the health insurance provider.

Lacunae in the existing scheme:

· Under the present Tamil Nadu Government Employees Health Fund Scheme providing coverage to the government employees and their family members, a monthly subscription of Rs 10 was collected and assistance to the extent of 75 per cent of the expenses or Rs 1 lakh whichever was less was granted to the eligible applicants.

· It has been represented to the Government that the cap of Rs 1 lakh was insufficient to meet the medical expenses of major ailments such as cancer and congenital heart disease.

· The employees were deprived of getting further assistance under the scheme during the rest of their service after availing the maximum amount of Rs 1 lakh.

· Employees also found it difficult to meet the cost of treatment themselves first before applying for reimbursement under the insurance scheme.

· In certain areas the employees/their dependents had to travel long distances for treatment due to lack of approved institutions nearby.

· The existing insurance scheme also left out employees of PSUs, local bodies, state government universities and statutory boards and some major ailments were out of coverage.

Mr Gnanadesikan said the State Government has now decided to implement a new health insurance scheme to ‘provide for comprehensive healthcare assistance to the employees with a wider scope of coverage’. (Contd)