About My Health Careers Internship MedBlogs Contact us

Health Ministry Plans to Shift to Health Insurance Scheme from The Government Health Scheme

by Vanessa Jones on January 29, 2015 at 7:38 PM
Font : A-A+

 Health Ministry Plans to Shift to Health Insurance Scheme from The Government Health Scheme

The new plan by the health ministry is to end the current scheme - the Central Government Health Scheme (CGHS) and moving it to an insurance based scheme - the Central Government Employees and Pensioners Health Insurance Scheme (CGEPHIS). Under the new scheme the insurance companies with the Insurance Regulatory and Development Authority (IRDA).

At Present under CGHS, the government employees paid Rs. 6000 yearly as a fixed medical allowance. Under the new scheme the Fixed Medical Allowance is yet to be fixed. The actual figures would base on the insurance company; the government has arrived at the presumptive figure of Rs. 14000 per family.


Under this scheme each family is covered for 5 lakh per year. Above that the insurer would get clearance from the nodal agency, pertaining to each case. An additional sum of 10 crores would be given to all 4 zones for such cases. The scheme would cover medical expenses up to Rs 5 lakh per family per year. Beyond that, the insurer would have to get clearance from the nodal agency on a case to case basis.

The existing employees could choose between CGHS and CGEPHIS, but for new employees the CGEPHIS would be compulsory. Sources in the health ministry said the proposal dated back to 2011, when the committee of secretaries gave its approval.  The proposal was revived after the NDA government took charge. Former Health Minister Dr Harsh Vardhan, was opposed to the idea as according to Vardhan the change would actually mean a higher burden on the exchequer.

Besides serving the retired government employees, this included former vice-presidents, former prime ministers, MPs and former MPs, sitting and retired judges of the Supreme Court, PIB accredited journalists, railway board employees, Delhi Police personnel in Delhi and employees and pensioners of 60 autonomous/statutory bodies.

The CGHS covers only 25 cities, and the new scheme would be pan-India. This would automatically increase the financial commitment. All diseases, including pre-existing ones, were to be covered, and in case of transplants, the expenses incurred for the donor or processing of cadaver organ would also be covered. Interestingly, the Rashtriya Swasthya Bima Yojana, which was run by the labor ministry so far, would be under the health ministry from April 1, as it moved from an insurance-based scheme to a trust-based scheme.

Source: Abantika Ghosh

Source: Medindia

News A-Z
News Category
What's New on Medindia
Can Adjusting Fatty Acid Intake Improve Mood in Bipolar Disorder Patients?
Insulin Resistance Doubles the Risk of Major Depressive Disorder
Emotional Healing
View all

Medindia Newsletters Subscribe to our Free Newsletters!
Terms & Conditions and Privacy Policy.

More News on:
Health Insurance Plan Third Party Administrators for Health Insurance Star Health and Allied Insurance Health Insurance Policies offered by Bajaj Allianz Insurance ICICI Lombard General Insurance Company Limited Health Insurance Health Insurance - Ombudsman Health Insurance - Basics New India Assurance Policies Cholamandalam Health Insurance Policies 

Recommended Reading
Solution for Cashless Insurance Beneficiaries Expected Soon
Uniformity in rates for the same procedure among all hospitals. This process should be finalized by ...
Important Points Necessary for Senior Citizen Health Insurance
Now senior citizens have a choice of health policies tailor made to meet their needs....
Out of State Health Insurance Pushed
The out of state health covers would make premiums more affordable but it could be that the ......
70 Percent Have No Health Insurance in India: Study
According to a white paper the health insurance should grow both by private insurance and by ......
Cholamandalam Health Insurance Policies
Cholamandalam MS General Insurance Company (Chola MS) a joint venture of Murugappa Group & Mitsui Su...
Health Insurance - Basics
Health insurance guarantees payments to a person in the event of sickness or injury.and works as pr...
Health Insurance - Ombudsman
Insurance Ombudsman institutions work for the purpose of quick disposal of the grievances of the ins...
Health Insurance Plan
With a health insurance policy you and your family can rest assured!...
Health Insurance Policies offered by Bajaj Allianz Insurance
Bajaj allianz health insurance policies protect you and your family in case you need expensive medic...
ICICI Lombard General Insurance Company Limited
Major health care plans from the ICICI Lombard include complete health insurance ihealth plan, perso...
New India Assurance Policies
The existing Mediclaim and Health Plus Medical expenses policies have been discontinued and Mediclai...
Star Health and Allied Insurance
Star Health & Allied Insurance offers a convenient insurance for the corporate people when they tra...
Third Party Administrators for Health Insurance
TPA is an IRDA approved healthcare service provider. TPA processes claims for policy holders on beha...

Disclaimer - All information and content on this site are for information and educational purposes only. The information should not be used for either diagnosis or treatment or both for any health related problem or disease. Always seek the advice of a qualified physician for medical diagnosis and treatment. Full Disclaimer

© All Rights Reserved 1997 - 2021

This site uses cookies to deliver our services. By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Use