Axis Pension Fund launches NPS Swasthya scheme for healthcare expenses

Axis Pension Fund Management on Thursday announced the launch of Axis NPS Swasthya Scheme, a voluntary health-linked pension solution that allows National Pension System (NPS) subscribers to build a dedicated corpus for medical expenses while continuing to save for retirement. 

The offering follows the formal launch of NPS Swasthya by Finance Minister Nirmala Sitharaman on NPS Diwas 2026. Introduced by the Pension Fund Regulatory and Development Authority (PFRDA), the initiative seeks to combine retirement savings with healthcare preparedness within the NPS framework. 

Up to 25% of contributions can be allocated to medical corpus 

Under the Axis NPS Swasthya Scheme, NPS subscribers can allocate up to 25% of their contributions towards a market-linked medical emergency fund. The corpus can be used for expenses including hospitalisation, doctor consultations, medicines, diagnostic tests and outpatient care. 

The scheme is also designed to help meet healthcare expenses that may not be covered by conventional health insurance, including co-payments and certain non-medical and administrative costs. 

Axis Pension Fund had participated in the proof-of-concept phase of NPS Swasthya earlier this year, allowing subscribers to experience the health-linked retirement solution within the NPS framework. 

Healthcare network covers over 18,000 hospitals 

The scheme is available to Indian citizens enrolled in NPS and has been introduced in partnership with Medi Assist. Subscribers can access a network of more than 18,000 hospitals across over 1,000 cities, enabling cashless medical payments. 

The scheme follows a self-funded model, under which healthcare expenses are supported by the market-linked growth of the corpus. Funds that are not immediately used for medical expenses remain invested, providing the potential for long-term growth. 

The product also covers all day-care procedures, along with pre-hospitalisation expenses for up to 30 days and post-hospitalisation expenses for up to 60 days. 

Scheme covers outpatient and uncovered expenses 

The Axis NPS Swasthya Scheme also provides coverage for expenses that are often excluded from conventional health insurance policies. These include consumables and administrative charges such as gloves, masks, syringes, admission charges and documentation fees. 

Subscribers can use the healthcare corpus for outpatient expenses such as doctor consultations, diagnostic tests, dental treatments, medicines and pharmacy expenses. The fund can also be used towards co-payments and other uncovered medical expenses. 

In addition, subscribers can access discounts across diagnostics, medicines, health check-up packages, vision care and dental services through the NPS Swasthya ecosystem. 

Sumit Shukla, MD & CEO, Axis Pension Fund, said, "India is witnessing a steady rise in awareness around healthcare and financial planning. As awareness and long-term financial planning continue to grow, customers are increasingly looking for solutions that deliver flexibility alongside protection."

"NPS Swasthya marks an important step towards integrating healthcare preparedness with retirement planning by enabling subscribers to build a dedicated healthcare corpus while continuing to pursue their long-term retirement goals. Axis Pension Fund welcomes PFRDA's initiative to bring healthcare protection and retirement savings together within the NPS framework. We believe this can play an important role in strengthening long-term financial resilience for subscribers."