MEDISEP: Govt ousts Reliance, new tender soon
Thiruvananthapuram: The state government has decided to cancel the tender awarded to Reliance company for Medical Insurance Scheme for State Employees and Pensioners (MEDISEP), the health insurance scheme of government employees and pensioners. It is reported that a new tender will be called to undertake the project.
The tender was earlier awarded to Reliance company but papers were not signed yet. The government had put forwarded a condition that the insurance company should bear the 25 percent of the fees mentioned in the contract on demand of the hospitals. Reliance refused to accept it. Also, Reliance was not ready to include speciality hospitals in the scheme. Observing this, the government excluded the company from the project.
Sources close to finance department disclosed that Reliance was removed from the project as they refused to accept the conditions which favour the beneficiaries. It is learned that the department has moved the file regarding MEDISEP new tender to Chief Minister. The proposal to call new tender to undertake the project will be carried out soon. Meanwhile, implementation of MEDISEP will be delayed for three more months with the new tender.
Though the government had ordered to implement the project under Reliance from June 1, the final contract was not signed yet. If the contract is signed, the government will have to pay Rs 167 crore as the first instalment and cancelling the tender would not have been possible. Hence, the government had not signed the contract with Reliance, said the finance department.
However, MEDISEP health insurance scheme has been facing criticism across the state. Popular private hospitals are not included in the scheme as they will have to treat patients at low fees with this scheme. Majority of the hospitals named in the scheme donot offer speciality treatment. Hence, associations of government employees and pensioners raised protest against it.
What is MEDISEP?
MEDISEP is a project proposed in the 2017-18 budget as recommended by the salary revision commission. The cabinet decided to hand over the project to Reliance following a tender issued in last April.
Five companies took part in the tender procedure. Among these, Reliance had proposed the low annual premium from the beneficiaries. Hence, the government handed over the project to Reliance. They had proposed a monthly premium of Rs 250 from employees and Rs 300 from pensioners for a period of three years.
The scheme ensures basic insurance coverage worth Rs 2 lakh to each family and insurance coverage of Rs 6 lakh for treatment serious illness including organ transplantation. The project was aimed to give insurance coverage to 11 lakh people including employees, pensioners and their dependents.
Reliance has been undertaking Karunya Arogya Suraksha Padhathi (KASP) which benefit the public.