8th Pay Commission: For central government employees, the CGHS card isn’t just a piece of plastic. It’s a source of trust. It’s a guarantee that the government stands with them and their families in old age or during a critical illness. In operation since 1954, the Central Government Health Scheme (CGHS) has been a protective shield for millions of employees and pensioners.
Over the past 10 years, especially during the 7th Pay Commission (2016-2025), numerous efforts have been made to strengthen and modernize this shield. But now, as discussions about the 8th Pay Commission are swirling across the country, a pressing question is swirling: is the 70-year-old CGHS about to end?
According to sources, the government may introduce a new insurance scheme for central government employees. It is possible that, in conjunction with the recommendations of the 8th Pay Commission, the government may replace the CGHS with a completely new, modern, and insurance-based health scheme.
Why is the voice of change rising?
CGHS has come a long way during the 7th Pay Commission. Every effort has been made to transform it from an old, file-bound scheme into a modern, digital platform. An initiative was taken to link CGHS cards with the Ayushman Bharat Health Account (ABHA). The old payment system was replaced with a new HMIS portal. The MyCGHS app was launched, enabling mobile access to card transfers and family member additions.
Rules made easier
Eligibility for general, semi-private, and private wards in private hospitals has been linked to employees’ basic salaries, eliminating confusion. The referral process has been simplified. Treatment in government hospitals is now possible without a referral, and in private hospitals, consultations with three specialists are possible with a single referral.
Services like physiotherapy became available at home. The approval process for medical devices like CPAP, BiPAP, and oxygen concentrators was moved online and expedited to just five days. This is a valid question. With so many improvements already underway at CGHS, why is there talk of a complete overhaul? There may be some profound and long-term reasons behind this.
1. Increasing scope and cost
The number of CGHS beneficiaries is constantly increasing, increasing the cost burden on the government. An insurance model could make this expenditure more manageable.
2. Flexible model of private insurance
An insurance-based scheme (possibly named CGEPHIS) could offer more flexible and advanced facilities like the private sector.
3. The dream of cashless treatment
The main focus of the new scheme could be on providing completely cashless and hassle-free treatment with a strong network of big private hospitals across the country.
What are the expectations from the 8th Pay Commission?
Although the official announcement of the 8th Pay Commission is still pending, it is certain that it will be effective from January 1, 2026. Employees and pensioners are already awaiting salary and pension increases, but they are also keenly watching the future of their health plans.