The Pension Fund Regulatory and Development Authority (PFRDA) now allows subscribers under ‘NPS Swasthya’, a multi-partner initiative that integrates retirement savings with healthcare accessibility, to get coverage for in-patient services and hospitalisation bills.
Powered by Medi Assist’s ‘Maven’ infrastructure, the initiative enables eligible NPS subscribers to access a portion of their retirement corpus for hospitalisation expenses, while continuing to benefit from long-term market-linked growth.
How much is the limit
The program brings together PFRDA, Tata Pension Fund, Axis Pension Fund, Aditya Birla Health Insurance, and Medi Assist to create a ‘more resilient social security framework for India’. ‘NPS Swasthya’ is designed to provide subscribers access to a ‘Net Eligible Balance’ of up to 25% of their contributions for medical expenses. National Pension System (NPS) funds traditionally remain locked-in until the subscriber reaches retirement age.
Subscribers can access these retirement units for immediate medical expenses through the MAven App, developed by Medi Assist Healthcare Services, which features direct integration with the CAMS Central Recordkeeping Agency (CRA).
Medi Assist offers access to a network of more than 15500 hospitals across 1264 cities to process cashless payments for inpatient (IPD) and facilitates outpatient (OPD) services as a technology aggregator. NPS Swasthya funds are managed by Tata Pension Fund and Axis Pension Fund.
“The idea of retiring with dignity cannot be alienated from a strong sense of medical security for the elderly. ‘NPS Swasthya Pension Scheme’ not only grows the subscriber’s corpus at a rate that is comparable to other popular instruments available in the market, but also provides financial support for out-patient and in-patient medical expenses in case of medical emergencies,” said Sivasubramanian Ramann, Chairperson, PFRDA.
“The fact of the matter is that several elderly remain outside the medical insurance net, making them extremely vulnerable to expenses beyond their reach,” he said. While the first phase of the scheme was launched in January 2026 for outpatient services, the second phase that has been launched now covers in-patient and hospitalisation bills.
“NPS Swasthya reflects our commitment to evolving retirement solutions that address the realities of longer life and rising healthcare costs. It enables investors to build a robust retirement corpus while staying financially prepared for medical needs, bringing greater balance and resilience to long-term financial planning,” said Kurian Jose, CEO, Tata Pension Fund Management.
“NPS Swasthya is unique since it offers a very different health and hospital proposition—a hospitalisation cover of up to ₹30 lakh at a cost of under ₹10 per day, making healthcare preparedness more accessible within the NPS framework,” said Sumit Shukla, MD & CEO, Axis Pension Fund.
The NPS Swasthya Scheme, which combines NPS savings, standard health benefits, and a ‘Group Health Super Top-Up’ insurance plan from Aditya Birla Health Insurance, is available to Indian citizens aged 18–85. Enrollment is subject to a ‘Good Health Declaration’ ensuring a streamlined onboarding process for members without major pre-existing conditions like heart disease or diabetes.
While PFRDA serves as the regulatory authority, Medi Assist Healthcare Services acts as the core technology partner, providing digital infrastructure. CAMS KRA supports subscriber onboarding and KYC (Know Your Customer) process. Tata Pension Fund and Axis Pension Fund serve as the designated pension fund managers. Aditya Birla Health Insurance provides the integrated top-up insurance cover, and Medi Assist TPA manages claims administration.