The central government is planning to make big changes in the Central Government Health Scheme (CGHS) for its employees and pensioners. It is said that this scheme may be replaced with a new insurance-based health scheme called CGEPHIS (Central Government Employees and Pensioners Health Insurance Scheme).

According to a report by Financial Express, the Central Government Health Scheme (CGHS), which is known as the backbone of health services for central employees and pensioners, has seen many changes in the last ten years. The 7th Pay Commission period (2016–2025) is now coming to an end. During this time, the government has started many important reforms for 2025. The formal launch of the 8th Pay Commission is still delayed, but employees and pensioners are waiting for new recommendations and health facilities. In this situation, the government may bring big changes in the Central Government Health Scheme under the 8th Pay Commission.

What are the expectations?

The 8th Pay Commission has been announced, but the notification of its scope and the appointment of the chairman and members are still pending. Even with this delay, many expectations of employees and pensioners are coming forward.

There is a strong talk that CGHS may be replaced with a new insurance-based scheme (CGEPHIS) so that health services become wider and modern. Till the new scheme starts, employees demand that CS(MA) and ECHS hospitals be added to CGHS to make treatment easier.

Employees also expect an increase in the fitment factor. This will raise salary and pension, but at the same time health contribution will also rise. So, employees want better facilities in the same ratio.

Updates so far

The formation of the 8th Pay Commission was announced in January 2025. But the Terms of Reference (ToR), which sets the scope and rules of the commission, is still not ready. Its approval is still pending.

The government recently told the Rajya Sabha that inputs are being taken from different ministries like Defence, Home Affairs, and DoPT. But the official notification of the commission is not released yet.

At first, the commission was expected to start from 1 January 2026. But now it looks delayed and may come into effect in late 2026 or in 2027.