Thiruvananthapuram: In a major relief to families left out of the Karunya Health Scheme, Kerala Finance Minister K N Balagopal on Thursday announced a new health insurance programme while presenting the State Budget 2026–27, the final Budget of the second Pinarayi Vijayan government. An allocation of ₹50 crore has been earmarked for the scheme, which will allow eligible families to enrol by paying a nominal premium, extending health cover to households currently without protection.

The Karunya Arogya Suraksha Padhathi has so far provided financial assistance for treatment to lakhs of families from economically weaker sections. However, many households remain outside its ambit due to eligibility norms and other limitations. The newly announced insurance scheme seeks to address this gap and prevent families from being pushed into financial hardship due to medical expenses.

Health sector expansion has been a consistent focus in recent State Budgets. In the 2025–26 Budget, the government had prioritised strengthening public healthcare infrastructure, widening Karunya coverage, and improving access to free medicines through government hospitals. The latest Budget builds on those efforts by shifting attention to families that have remained uninsured despite the State’s extensive welfare framework.
The Budget has also increased the pensions for patients affected by cancer, leprosy, tuberculosis and AIDS by ₹1,000 per month.

Alongside the new health insurance scheme, the 2026–27 Budget includes measures to enhance employee health benefits, expand welfare coverage and reinforce the public healthcare system.