Big changes may be coming for central government employees and pensioners under the 8th Pay Commission. According to media reports, the government could soon introduce a new health insurance-based scheme, which may replace the existing Central Government Health Scheme (CGHS).

Currently, CGHS offers affordable medical treatment, consultations, medicines, and diagnostic services at empanelled hospitals to government employees, their dependents, and pensioners. However, the scheme is often criticized for its limited coverage in rural areas.

Is CGHS Set to Be Discontinued?

Over the years, several Pay Commissions — including the 5th, 6th, and 7th — have raised concerns about CGHS’s reach, especially for those living away from urban centers. Experts believe this is one reason the government is working on a new model, possibly insurance-based, to ensure wider and more modern healthcare access.

What Will the New Health Scheme Look Like?

As per reports, the proposed scheme might be called the Central Government Employees and Pensioners Health Insurance Scheme (CGEPHIS). The key features would likely include:

• Collaboration with IRDAI-registered insurance companies

• Cashless treatment at a wide network of hospitals

• Coverage for both employees and pensioners

• Digital claim processing and real-time monitoring

• Potentially higher coverage for serious illnesses

The final details and rollout are still awaited, and there’s been no official statement from the government so far.

Past Pay Commission Suggestions:

The idea of replacing or upgrading CGHS isn’t entirely new. The 6th Pay Commission had suggested introducing an optional, contribution-based insurance scheme for better coverage. The 7th Pay Commission further recommended expanding cashless treatment options to non-CGHS-covered pensioners via tie-ups with local hospitals under CS(MA) and ECHS frameworks.

Conclusion:
If implemented, the new health scheme could bring private-sector-like medical facilities within the reach of central government staff and pensioners, especially in rural or semi-urban locations. This would mark a major healthcare shift in line with modern digital systems and broader hospital networks.