The Pension Fund Regulatory and Development Authority (PFRDA) has launched the second proof of concept (POC) of 'NPS Swasthya', marking a significant expansion from the initial outpatient-focused pilot launched in January 2026. According to reports from PTI and Upstox, the latest phase expands coverage to include inpatient and hospitalisation services, addressing the growing healthcare needs of India's aging population. PFRDA Chairperson Sivasubramanian Ramann emphasized that the scheme reflects the urgent need to combine retirement planning with healthcare security, particularly as India's senior citizen population is expected to rise from around 10 per cent currently to over 20 per cent by 2045-50. The initiative addresses a growing gap in India's retirement landscape, where healthcare costs are projected to rise by 11.5 per cent to 14 per cent in 2026, significantly outpacing inflation and putting long-term financial security under pressure for millions.
The initiative provides hospitalisation cover of up to ₹30 lakh at a cost of under ₹10 per day, making healthcare preparedness more accessible within the NPS framework. As reported by PTI and Upstox, NPS Swasthya offers access to a network of over 15,500 hospitals across 1,264 cities for cashless inpatient services and facilitated outpatient care. Medi Assist Healthcare Services acts as the core technology partner, providing digital infrastructure and access to this extensive healthcare network. Axis Pension Fund's Sumit Shukla highlighted that this comprehensive coverage addresses the growing awareness around financial planning and healthcare integration, offering both flexibility and protection for subscribers.
Under the initiative, Medi Assist Healthcare Services will act as the core technology partner, while CAMS KRA will handle onboarding and KYC processes. As reported by PTI and Upstox, Tata Pension Fund and Axis Pension Fund will serve as fund managers, and Aditya Birla Health Insurance will provide top-up cover. Additionally, Medi Assist TPA will manage claims through the integrated system, with Satish Gidugu from Medi Assist noting that the initiative leverages technology to convert long-term retirement assets into real-time healthcare resources. The multi-partner framework is designed to provide both financial and health security for subscribers, with Kurian Jose, CEO of Tata Pension Fund Management, highlighting that the scheme enables investors to build a robust retirement corpus while staying financially prepared for medical needs.
The scheme is open to Indian citizens aged 18 to 85 years, subject to a 'Good Health Declaration' to ensure streamlined onboarding. According to Upstox, individuals with major pre-existing conditions such as heart disease or diabetes may be excluded from participation. Unlike traditional NPS funds that remain locked until retirement, NPS Swasthya allows subscribers to access a 'Net Eligible Balance' of up to 25% of their contributions for medical expenses through the MAven App, developed by Medi Assist, which is integrated with the CAMS Central Recordkeeping Agency (CRA) system for seamless fund access. Subscribers can withdraw funds through this integrated platform for healthcare needs, with unused contributions continuing to accumulate market-linked returns while remaining accessible for medical emergencies.
The launch comes as the pension ecosystem expands rapidly, with NPS and Atal Pension Yojana (APY) together having a subscriber base of 9.64 crore and assets under management of ₹16.55 lakh crore as of March 29, 2026. As reported by PTI and Upstox, this substantial market presence provides a strong foundation for the introduction of integrated retirement-healthcare solutions. The initiative operates under the Multiple Scheme Framework (MSF) of NPS, enabling subscribers to allocate investments across different pension fund managers while integrating healthcare preparedness into long-term savings. PFRDA and partners aim to redefine social security by combining financial growth with healthcare protection, with the scheme designed to provide financial support for out-patient and in-patient medical expenses in case of medical emergencies while growing the subscriber's corpus at comparable rates to other popular investment instruments.
