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8th Pay Commission! Central government can bring a new health insurance scheme, how will employees and pensioners benefit?

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Health insurance : What is capping in health insurance? It is very important to know the terms and conditions, otherwise you may have to pay half the bill from your pocket
Health insurance : What is capping in health insurance? It is very important to know the terms and conditions, otherwise you may have to pay half the bill from your pocket

The 8th Pay Commission may be the first commission to formally suggest a fully insurance-based scheme, as developing one would reduce the administrative burden on the government and provide greater access to employees.

The 8th Pay Commission may be implemented next year. The central government is hoping to implement the 8th Central Pay Commission for government employees and pensioners by January 1, 2026, even though the commission has not yet been officially constituted. The upcoming 8th Pay Commission is expected to review the existing salary and pension structure and make recommendations

that will provide financial benefits to millions of central government employees across India, although no formal notification has been issued. Media reports and industry watchers suggest that preparations are in full swing. Government employees have already started requesting the government to consider a favorable fitment factor, which will directly impact their salaries.

According to a Times Now report, one of the most important anticipated reforms is related to the Central Government Health Scheme (CGHS), a long-standing medical benefits program for employees, pensioners and their dependents. According to multiple reports in the Telugu and Hindi regional press, the central government may replace CGHS with a new health insurance model called the Central Government Employees and Pensioners Health Insurance Scheme (CGEPHIS).

What’s the plan ahead?

The Indian Insurance Regulatory and Development Authority of India (IRDAI) is expected to play a key role in implementing CGEPHIS, which could be administered through select IRDAI-licensed insurance companies. While CGHS has been the default health coverage for decades – having been consistently recommended by the 5th, 6th and 7th Pay Commissions – the proposed CGEPHIS is said to offer comprehensive and potentially cashless coverage even in private hospitals.

Understand the full history here

The 6th Pay Commission had initially recommended covering new employees under the mandatory insurance model. The 7th Pay Commission also reiterated this and recommended expanding CGHS-linked hospitals in less developed areas. The 8th Pay Commission may be the first to formally suggest a full-fledged insurance-based scheme, as developing it will reduce the administrative burden of the government and provide greater access to employees. A SEBI-type regulatory framework is also being considered to ensure smooth enrollment and claims processing. So far, there has been no official confirmation on CGEPHIS by the Health Ministry or the Department of Personnel and Training (DoPT).

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