8th Pay Commission Update: The central government is planning a major change in the Central Government Health Scheme (CGHS) being run for its employees and pensioners. There is talk of replacing this scheme with a new insurance-based health scheme.
CGEPHIS can replace CGHS
According to reports, the government is considering replacing CGHS with a new insurance scheme called “CGEPHIS” (Central Government Employees and Pensioners Health Insurance Scheme). Its aim is to make health services more modern and comprehensive.
Currently, the 7th Pay Commission (2016-2025) is in its final phase. During this period, many major changes have been made in CGHS and now the government is focusing on further reforms. Although the 8th Pay Commission has been announced in January 2025, the Terms of Reference (ToR) have not been decided yet, nor have the chairman or members of the commission been appointed.
Increasing expectations of employees
Amidst this delay, the expectations of central employees and pensioners are constantly increasing. The demand for improvement in health services, insurance based facility, and high quality treatment is gaining momentum.
Through CGEPHIS, cashless treatment facility can be provided in private and government hospitals. Apart from this, this scheme can cover more institutions than CGHS, which will make access to treatment easier. Until the new scheme is implemented, the employees demand that hospitals like CS(MA) and ECHS should also be added to the CGHS network so that treatment facilities can be improved.
The 8th Pay Commission was earlier expected to be implemented from January 1, 2026, but due to the delay in the formation of the commission, it is now considered possible only by FY 2027 or the end of 2026. The government is currently taking suggestions from various ministries, but the official notification is awaited.