NPS Health : The NPS Health Pension Scheme is an initiative of the Public Sector Undertakings (PFRDA). Under this scheme, an individual’s medical expenses will be covered by their pension savings. Initially, this scheme is being tested through a small pilot project. This scheme links health expenses to the National Pension System (NPS).
Under this scheme, people can save money and later use it to pay hospital and doctor bills. The aim of this scheme is to make healthcare support easy, secure, and transparent.
The PFRDA issued a circular in this regard on January 27. It stated, “The NPS Health Scheme will be introduced as a sector-specific scheme under the NPS. It aims to provide financial support for outpatient and inpatient medical expenses. It will operate under the Multiple Scheme Framework (MSF).”
The pension regulator’s circular states that the scheme will be a contributory pension scheme, operating under Section 20 and Section 12(1)(A) of the PFRDA Act. It will be offered to individuals on a voluntary basis. It will be launched by pension funds (PFs) after approval from the authority.
PFRDA has provided the following information about this scheme:
1. Eligibility : Any citizen of India can join the NPS Health Pension Scheme. If you don’t already have an account, you must open a common scheme account with the NPS Health Pension Scheme.
2. Charges : The fees and charges for this scheme will be covered by the MSF Rules and will be clearly stated. These charges will include charges payable to the HBA.
3. Contributions : Subscribers will be able to contribute any amount to the NPS Health Pension Scheme. The existing guidelines for the non-government sector under the NPS will apply.
4. Transfer of Contributions from Common Scheme Account : Subscribers (except those in Government Sector and Government owned companies) who are above 40 years of age will be allowed to transfer their own/or employee’s contribution from the Common Scheme Account to the NPS Health Pension Scheme Account.
6. Partial Withdrawals for Medical Expenses : Subscribers will be permitted to make partial withdrawals from their NPS Health Pension Scheme account to cover outpatient or inpatient medical costs. A subscriber can withdraw up to 25% of their contribution to the scheme at any given time.
7. Premature Exit for Critical Medical Treatment : For inpatient medical treatment where the expenses in a single case exceed 70% of the funds available in the subscriber’s NPS Health Pension Scheme account, the subscriber will be allowed to withdraw 100% of the funds in lump sum before the stipulated time.
8. Claim Settlement: The withdrawn amount will be paid directly to the respective HBA/TPA. This payment will be made based on a valid claim and supporting invoices. The remaining surplus will be transferred to the subscriber’s common scheme account after settling medical expenses.