Reopening hopes in the minds of central government workers and pensioners, the announcement of the formation of the 8th Pay Commission officially lays into the recommendations on updating the salaries, pensions, allowances, and healthcare benefits of employees and pensioners in consonance with the modern economic conditions. This commission was established in January 2025.
People think this is the pay commission and all its recommendations apply only to increasing pay, but it is not true. It has more than that. It studies medical benefits, insurance policies, and many such allowances that change the fate of millions of government employees and retirees.
What is CGHS, and why is it Under Review?
The Central Government Health Scheme (CGHS) has remained the soul of health and medical care for central government employees, their pensioners, and family members for many decades. It believes in providing its beneficiaries cost-effective medical services, including doctors, treatment, diagnostic tests, medicines, etc. The limitations of this are only for making the services available in urban areas. Many poor beneficiaries are still left wanting in smaller towns and rural areas.
Earlier Suggestions Regarding CGHS Reform
Most of the earlier pay commissions have recognized the shortcomings of CGHS and suggested alternatives:
- The 6th pay commission recommended the introduction of voluntary contributory health insurance to be made compulsory for newly inducted employees.
- The 7th Pay Commission proposed a comprehensive insurance-based model as a long-term alternative to cashless treatment to pensioners outside CGHS-covered areas through empanelment of access hospitals under schemes like CS(MA) and ECHS.
Will There Be Another Healthcare Scheme Beyond CGHS?
Reports emanating from the works of the Health Ministry concerning their plans to bring a more up-to-date, insurance-driven healthcare scheme likely to replace the CGHS in January 2025 point towards the scheme tentatively called the Central Government Employees and Pensioners Health Insurance Scheme (CGEPHIS). It will be implemented possibly through insurance providers registered with IRDAI.
Clearly, confirmation from the authorities has not yet been given. Until then, employees and pensioners will wait with bated breath for more details.
All Eyes on the 8th Pay Commission
With the 8th Pay Commission set to begin its deliberations soon, the biggest question in the budgeted directive is whether it will finally rid itself of long-standing issues from CGHS and put a paradigm-shifting, sustainable healthcare model in place.
What Can Central Employees Hope For?
- Wider coverage in healthcare for employees in non-urban areas.
- Cashless services under a structured insurance model.
- Increased availability of quality medical services for pensioners.
- As the discussion progresses, government employees and retired people remain optimistic that the new model will provide affordable, convenient, and modern healthcare.
Watch out for other news on the recommendations the 8th Pay Commission will produce!