8th Pay Commission: The government in January this year announced the formation of the new pay commission which will mainly be tasked with a mandate to suggest adjustments needed in the salary and pension of central government employees and pensioners based on current economic realities prevailing in the country. It is widely believed that pay panels’ only task is to suggest the quantum of hike needed to be given in employee salaries based on some formula.
But pay commissions’ tasks also involve reviewing various allowances, perks and other facilities including health insurance and then recommending the necessary changes needed for reform measures in the interest of employees.
One such reform measure that has been in focus for employees for the last many years is the Central Government Health Scheme (CGHS). Central government employees and their dependents are primarily covered by the CGHS, offering them comprehensive medical care and related facilities.
What is CGHS?
The CGHS is a healthcare scheme by the Indian government that provides comprehensive medical care to central government employees, pensioners, and their dependents, offering access to consultations, treatments, diagnostics, and medications at affordable rates.
Will 8th Pay Commission recommend replacing CGHS with some other health scheme?
The last three pay commissions had recommended the introduction of a new healthcare scheme for central government employees and pensioners. Despite the government’s interest, the scheme has not been implemented yet.
Why did previous panels recommend a new health insurance scheme?
The CGHS’s reach is limited and its facility is not available everywhere. For this reason, the earlier pay commissions felt that there is a need for a comprehensive and practical healthcare scheme.
Let us understand what the previous pay commissions said about this:
Here’s what 6th Pay Commission suggested
The 6th Pay Commission recommended that an optional healthcare scheme be introduced for central government employees and pensioners, in which employees can join at their own will, provided they pay the fixed contribution. It also recommended making the scheme compulsory for all new employees joining in future.
The panel also said that medical cover should be extended to those retiring after the scheme is implemented.
What was the 7th Pay Commission’s view on a new healthcare scheme for central employees?
The 7th Pay Commission clearly stated that health insurance is the most suitable option for providing long-term and better medical protection to all employees, pensioners and their families.
The pay panel strongly recommended the implementation of a healthcare scheme for central government employees and pensioners. Till the scheme is implemented, the commission made an important suggestion for pensioners who are outside the ambit of CGHS.
It said that CGHS should empanel hospitals which are already under CS(MA) or ECHS so that these pensioners can avail cashless treatment. For this, the administrative capacity of the nearest CGHS centres will have to be strengthened. This step can address the grievances of these pensioners pending for years to a large extent.
CS(MA) is for serving central government employees, while ECHS is for retirees and their dependents, offering healthcare through polyclinics and empanelled hospitals.
Also read: 8th Pay Commission: Fitment factor may rise to 2.86 but govt employees’ salary won’t – Here’s why
What’s happening now?
In January 2025, reports surfaced that the Health Ministry might replace CGHS with an insurance-based scheme. The proposed scheme would be named – Central Government Employees and Pensioners Health Insurance Scheme (CGEPHIS).
This scheme can be implemented through insurance companies registered with the insurance regulatory body IRDAI. However, there has been no official confirmation from the government yet.
Now all eyes are on the 8th Pay Commission
Now that the 8th Pay Commission is announced and the proposed panel will start its work soon, it will be interesting to see if the new commission is able to solve this age-old issue or not.