Medi Assist Healthcare Services has announced the approval of a merger scheme between two of its wholly owned subsidiaries. The Board of Directors approved the Scheme of Amalgamation on December 29, 2025, involving Paramount Health Services & Insurance TPA Private Limited and Medi Assist Insurance TPA Private Limited under Section 233 of the Companies Act, 2013.

Merger Details

The amalgamation involves Paramount Health Services & Insurance TPA Private Limited (Paramount TPA), a step-down wholly owned subsidiary, merging with Medi Assist Insurance TPA Private Limited (MAITPA), a wholly owned subsidiary of the company. Both entities operate as Third-Party Administrators providing health administration services to insurance companies.

Financial data as of March 31, 2025

Strategic Rationale

The merger aims to achieve multiple strategic objectives focused on operational efficiency and growth enhancement. The consolidation is expected to enable integrated business operations and provide impetus to the transferee company's activities through seamless access to assets, including intangible assets, licenses, and intellectual properties.

Key anticipated benefits include:

• Streamlined group structure reducing multiplicity of legal and regulatory compliances
• Cost savings through focused operational efforts and rationalization of common resource pools
• Enhanced utilization of infrastructure facilities and financial resources
• Improved cash management and efficient deployment of combined cash flows

Regulatory Compliance and Documentation

The company has filed the necessary intimation under Regulation 30 of SEBI Listing Regulations with both National Stock Exchange of India Limited and BSE Limited. The transaction falls under related party provisions as both companies are subsidiaries within the same group. However, pursuant to Regulation 23(5)(b) of SEBI Listing Regulations 2015, related party transaction provisions do not apply to this scheme.

Additionally, compliance with Section 188 of the Companies Act 2013 requirements is not necessary for this merger, as clarified by Ministry of Corporate Affairs General Circular No. 30/2014.

Financial Structure

No cash consideration is involved in this merger. Upon the scheme becoming effective, the entire share capital of Paramount TPA held by MAITPA will be cancelled and extinguished without requiring surrender or additional documentation. The investment in Paramount TPA shares appearing in MAITPA's books will automatically stand cancelled.

The company has uploaded the complete details on its website www.mediassist.in and formally notified both stock exchanges through proper regulatory channels. This strategic move is aimed at achieving operational synergies between the two subsidiaries, potentially streamlining operations and enhancing efficiency within the Medi Assist Healthcare Services group.

Medi Assist Healthcare Services Limited , India's largest technology-led health benefits administrator, has unveiled groundbreaking AI-driven platforms aimed at transforming the health benefits ecosystem. The company's latest innovations underscore its commitment to delivering sustainable benefits and effortless experiences for its members.

Key Achievements and Innovations

Medi Assist has made significant strides in streamlining cashless healthcare processes:

New AI-Powered Platforms

The company introduced two cutting-edge platforms:

1. MAven Guard: A self-learning transaction integrity platform designed to detect, prevent, and deter fraud, waste, and abuse in real-time.

2. MAgnum: A hospital enablement solution that allows providers to make cashless experiences effortless for members.

These platforms are built on Medi Assist's comprehensive AI Stack, aligning with the company's long-term vision of sustainable benefits and seamless member experiences.

Tackling Fraud, Waste, and Abuse

In collaboration with Boston Consulting Group (BCG), Medi Assist released a report titled "From Suspicion to Solution: A Strategic Approach to Health Insurance Fraud." Key findings include:

• An estimated ₹8,000–10,000 crore in annual claim payouts are lost due to Fraud, Waste, and Abuse (FWA).
• FWA contributes to inflated premiums, weakened insurer margins, and strained public resources.
• Systemic issues, including fragmented data and weak controls, fuel predictable leakage patterns.

Strategic Framework

The report recommends a three-pillar approach to address these challenges:

1. Prevention
2. Detection
3. Deterrence

This framework is supported by:

• A unified national codebook
• Governed GenAI and digital intelligence
• Real-time data exchange through ABDM and NHCX

Industry Perspectives

Satish Gidugu, CEO of Medi Assist, emphasized the transformative role of technology and AI in proactively identifying and reducing FWA, leading to cost savings and improved operational efficiencies.

Swayamjit Mishra, Managing Director and Partner at BCG, highlighted the opportunity to address inefficiencies in the 8% of claims that fall between risk-free and outright fraudulent, potentially advancing the government's "Insurance for All" vision by nearly five years.

Looking Ahead

Medi Assist's initiative marks a significant step towards building a more accessible, efficient, and trusted health benefits ecosystem in India. By leveraging AI and digital intelligence, the company aims to strengthen transparency, integrity, and long-term sustainability across the health benefits value chain.

As the health insurance landscape in India continues to evolve, Medi Assist's innovative approach positions it at the forefront of the industry's technological transformation, potentially reshaping the future of health benefits administration in the country.