Kerala Allocates ₹124.63 Cr for Karunya Schemes & Adds to ₹7,708 Cr in Free Healthcare Support

The funds are aimed at clearing pending claims and sustaining free healthcare access under schemes that have delivered significant treatment support to the state’s residents.

The Government of Kerala has sanctioned an additional allocation of ₹124.63 Cr to strengthen its flagship health protection programmes, the Karunya Arogya Suraksha Padhathi (KASP) and the Karunya Benevolent Fund (KBF).

The funds are aimed at clearing pending claims and sustaining free healthcare access under schemes that have delivered significant treatment support to the state’s residents.

According to the health department, the new allocation comprises ₹75.66 Cr for KASP and ₹49.3 Cr for KBF.

While modest in size compared to the total value of claims already processed, the infusion is expected to provide immediate relief for hospitals and beneficiaries relying on cashless or subsidised treatment.

Scale of the Schemes

Kerala officials report that over the past five years, 25.17 lakh people have benefited from these two programmes. Of these, 24.06 lakh patients were treated under KASP, amounting to ₹7,163 Cr in treatment costs, while 64,075 patients received support worth ₹544 Cr through KBF. Together, the two schemes have enabled ₹7,708 Cr in free healthcare services.

KASP, run by the State Health Agency, offers cashless cover of up to ₹5 lakh per family per year for secondary and tertiary hospitalisation. The scheme covers 43.07 lakh families, providing access to treatment across a large network of empanelled hospitals in the state.

KBF, in contrast, is designed to assist low-income families not covered under KASP. It provides one-time financial assistance, generally up to ₹2 lakh per family and in specific cases up to ₹3 lakh, for high-cost medical treatments.

Uniquely, KBF is funded through revenue from the state lottery department, making it a welfare measure with an independent financing stream.

Allocation in Perspective

When viewed against the aggregate spending of the past five years, the latest allocation represents only a 1.6% addition.

Disaggregated further, the ₹75.66 Cr for KASP works out to roughly ₹176 per enrolled family, underlining the relatively small scale of the top-up in comparison to the size of the programme.

Average payouts to beneficiaries also illustrate how the schemes function differently. KASP disbursements have averaged around ₹29,800 per treated patient, consistent with coverage of routine but high-volume hospitalisations.

KBF, on the other hand, has averaged ₹84,900 per patient, reflecting its role in supporting fewer but more expensive medical cases.

Operational Challenges

Despite their reach, both KASP and KBF face implementation hurdles. Hospitals, particularly in the private sector, have in the past raised concerns over delayed claim settlements.

Instances of treatment refusals for KASP beneficiaries have been reported, citing mounting unpaid dues from the government. The new allocation may help clear part of this backlog, but systemic delays remain a concern.

Sustainability is another issue. With demand for free and subsidized care continuing to rise, recurring allocations are required to ensure the timely disbursal of claims. KBF’s reliance on lottery department revenues also raises questions about predictable long-term funding.

Kerala’s health protection schemes have been recognized nationally for their scale and impact.

At the same time, the heavy utilization rates and associated costs highlight the financial pressures inherent in maintaining universal access to high-quality care.

With over ₹7,700 Cr in free treatment already delivered, the Karunya schemes remain central to Kerala’s healthcare safety net. The challenge going forward will be to balance the scale of demand with a financing model that can keep pace.

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