What is the story about?
The Pension Fund Regulatory and Development Authority (PFRDA) has launched the second proof of concept (PoC) of ‘NPS Swasthya’ under its regulatory sandbox, aiming to integrate retirement savings with access to healthcare funding within the National Pension System (NPS).
The initiative is being developed as a multi-partner framework.
Medi Assist Healthcare Services is providing the digital infrastructure, while CAMS KRA supports onboarding and KYC processes. Pension fund management is handled by Tata Pension Fund Management and Axis Pension Fund, and a group health super top-up cover is offered by Aditya Birla Health Insurance. Claims administration is managed by Medi Assist TPA.
The product is designed to address rising healthcare costs alongside retirement planning needs. According to industry estimates cited in the announcement, healthcare expenses in India are expected to grow by 11.5%–14% in 2026, outpacing general inflation. This comes as the combined subscriber base of NPS and Atal Pension Yojana stands at 9.64 crore, with total assets under management of about ₹16.55 lakh crore as of March 29, 2026.
Under the proposed structure, subscribers may access up to 25% of their contributions—termed as “net eligible balance”—for medical expenses. Withdrawals can be made digitally through the MAven application, which is integrated with the Central Recordkeeping Agency (CRA) system.
The scheme is being introduced within the Multiple Scheme Framework (MSF) of NPS, allowing subscribers to allocate investments across different pension fund managers while incorporating healthcare-linked features. Unutilised contributions are expected to remain invested and continue to generate market-linked returns.
The platform also integrates hospital access and claims processing. Medi Assist said its network includes over 15,500 hospitals across 1,264 cities, enabling cashless inpatient services and facilitating outpatient services through its technology layer.
The second PoC expands the scope of the earlier pilot launched in January 2026, which focused on outpatient services, to now include hospitalisation and inpatient expenses. The regulator indicated that the sandbox approach is intended to assess operational, technological and regulatory feasibility before wider rollout.
The scheme is open to Indian citizens aged 18 to 85 years, subject to a health declaration at the time of enrolment.
The initiative is being developed as a multi-partner framework.
Medi Assist Healthcare Services is providing the digital infrastructure, while CAMS KRA supports onboarding and KYC processes. Pension fund management is handled by Tata Pension Fund Management and Axis Pension Fund, and a group health super top-up cover is offered by Aditya Birla Health Insurance. Claims administration is managed by Medi Assist TPA.
The product is designed to address rising healthcare costs alongside retirement planning needs. According to industry estimates cited in the announcement, healthcare expenses in India are expected to grow by 11.5%–14% in 2026, outpacing general inflation. This comes as the combined subscriber base of NPS and Atal Pension Yojana stands at 9.64 crore, with total assets under management of about ₹16.55 lakh crore as of March 29, 2026.
Under the proposed structure, subscribers may access up to 25% of their contributions—termed as “net eligible balance”—for medical expenses. Withdrawals can be made digitally through the MAven application, which is integrated with the Central Recordkeeping Agency (CRA) system.
The scheme is being introduced within the Multiple Scheme Framework (MSF) of NPS, allowing subscribers to allocate investments across different pension fund managers while incorporating healthcare-linked features. Unutilised contributions are expected to remain invested and continue to generate market-linked returns.
The platform also integrates hospital access and claims processing. Medi Assist said its network includes over 15,500 hospitals across 1,264 cities, enabling cashless inpatient services and facilitating outpatient services through its technology layer.
The second PoC expands the scope of the earlier pilot launched in January 2026, which focused on outpatient services, to now include hospitalisation and inpatient expenses. The regulator indicated that the sandbox approach is intended to assess operational, technological and regulatory feasibility before wider rollout.
The scheme is open to Indian citizens aged 18 to 85 years, subject to a health declaration at the time of enrolment.
