Tamil Nadu Health Scheme 2026: CM Vijay Announces Rs 25 Lakh Insurance Cover, New Hospitals & Cancer Care Push

Tamil Nadu is set to expand its public healthcare system with a series of major measures announced by Chief Minister C. Joseph Vijay in the state Assembly on Wednesday, August 19, 2026. The package includes a sharp increase in health insurance coverage, a new multi-super-speciality hospital, additional medical education seats and a large investment in cancer treatment.

Tamil Nadu Health Scheme 2026: Health Insurance Cover Increased Five-Fold to Rs 25 Lakh

The most significant decision is the increase in annual coverage under the Chief Minister's Comprehensive Health Insurance Scheme from Rs 5 lakh to Rs 25 lakh. The five-fold rise is aimed at reducing the financial burden on families requiring costly medical treatment.

The expanded Tamil Nadu Chief Minister's Comprehensive Health Insurance Scheme will provide eligible beneficiaries with coverage of up to Rs 25 lakh annually, compared with the previous ceiling of Rs 5 lakh.

The higher insurance limit could help families meet expenses associated with major surgeries, cancer treatment, specialised procedures and extended hospital stays. The actual coverage available will depend on the treatments included in the scheme, approved package rates and empanelled hospitals.

CM Vijay stressed that financial status should not determine whether a person can access medical treatment.

"The value of life should not be determined by a person's income. The TVK government is firm that there should be no discrimination in providing treatment based on a person's economic status. Medical care is a basic right of every human being, and not a concession," CM Vijay said in the Assembly.

CM Vijay Adds Gender-Affirming Surgeries for Transgender Women

The state will also extend coverage for gender-affirming medical services and surgeries for transgender women under the health insurance program. The services will be available at Stanley Medical College and medical college hospitals in Tirunelveli, Thoothukudi, Chengalpattu, Tiruvarur, Dharmapuri and Kanniyakumari. The move is intended to improve access to specialised healthcare through government medical institutions.

Tamil Nadu will establish a 400-bed multi-super-speciality hospital in Perambur, Chennai, with an estimated investment of Rs 300 crore. The proposed facility is expected to increase the availability of specialised government healthcare services in north Chennai. Its eventual capacity to serve patients will depend on staffing, medical equipment, specialist departments and operational readiness.

Tamil Nadu to Add 5,000+ Nursing, Pharmacy and Paramedical Seats

The state has allocated Rs 351 crore for expanding healthcare education and training capacity. The government plans to establish seven new nursing colleges and introduce 660 additional B.Sc Nursing seats. Another 1,925 nursing seats will be added across existing nursing colleges.

The expansion will also include 2,778 additional physiotherapy seats and 735 pharmacy seats, increasing the number of trained professionals entering Tamil Nadu's healthcare workforce.

Tamil Nadu Cancer Care Mission Gets Rs 673.44 Crore

Cancer treatment is another major focus of the healthcare package. Tamil Nadu will spend Rs 673.44 crore on upgrading the Chief Minister's Cancer Care Mission. A new cancer treatment facility will be constructed at Rajiv Gandhi Government General Hospital in Chennai at a cost of Rs 471.98 crore. The proposed structure will have a ground floor and 14 upper floors.

The state will also establish Regional Cancer Centres at medical colleges in Thanjavur, Coimbatore, Madurai, Tirunelveli and Villupuram. As part of the first phase, Madurai Rajaji Medical College will receive a Regional Cancer Centre costing Rs 84 crore. The centre will operate from a ground-plus-eight-floor building.

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