New
Delhi: In a move that could benefit more than 50 lakh central government
employees and 56 lakh pensioners, the Seventh Pay commission is planning to
propose to introduce health insurance scheme to replace Central Government
Health Scheme (CGHS) at highly subsidized rates.
The
pay panel has already held detailed discussions about this with various
stakeholders, including organisations, federations, groups representing civil
employees as well as Defence services.
The
pay panel will ask the central government to urge the insurance industry to
come up with feasible health insurance solution for the central government
employees and pensioners. The IRDA, the insurance regulatory body of India,
will be compelled to ask the health insurance companies to offer a basic
insurance to every central government employee and pensioner, regardless of age
or medical condition and are not allowed to make a profit off this basic
insurance.
The
serving central government employees in non-CGHS areas are provided healthcare
facilities under the CS(MA) Rules, 1994, but pensioners are not covered under
these rules.
The
pensioners are, however, entitled to a fixed medical allowance of Rs 500 per
month. The pensioners residing in non-CGHS areas have the option to become a
CGHS member in any CGHS-covered city of their choice to avail the medical
facilities under the CGHS Scheme.
Health
insurance would be available for central government employees and pensioners
till death, with the insured employees and pensioners will have to pay 50% of
the premium from their salaries and pensions and the remaining 50% premium may
be paid by the central government.
The
health insurance would cover a family of six the employee and pensioner himself
or herself, the spouse, two children and two parents. The maximum sum assured
for family in a year could up to Rs 5 lakh.
Under
the CGHS, the annual per capita expenditure is more than Rs 5,000. In contrast,
the National Rural Health Mission (NRHM), which caters to the rural masses,
spends just Rs 180 per head.
The
CGHS is financed mainly through the Centre’s tax revenues. Though beneficiaries
do contribute a share of their wages towards premium, ranging from Rs 600 to Rs
6,000 a year depending on their pay scale, this accounts for just about 5 per
cent of the total expenditure. The government shells out the remaining 95 per
cent.
So,
the central government also wanted for ending the CGHS in its current form and
to move to an insurance-based health scheme to cut costs.
TSTNew
Delhi: Seventh Pay Commission is ready with its recommendations on revising
emoluments for nearly 48 lakh central government employees and 55 lakh
pensioners, and will soon submit report to the Finance Ministry.
Earlier
in August, the government had extended Commission's term by another four months
till December 31 to give recommendations.
"The
Commission is ready with recommendations and the report will be submitted
soon," according to sources.
The
Commission, whose recommendations may also have a bearing on the salaries of
the state government staff, was given more time by the Union Cabinet just a day
before its original 18-month term was coming to an end.
Headed
by Justice A K Mathur, the Commission was appointed in February 2014 and its
recommendations are scheduled to take effect from January 1, 2016.
The
government constitutes the Pay Commission almost every 10 years to revise the
pay scale of its employees and often states also implement the panel's
recommendations after some modifications.
As
part of the exercise, the Commission holds discussions with various
stakeholders, including organisations, federations, groups representing civil
employees as well as defence services.
Meena
Agarwal is the secretary of the Commission. Other members are Vivek Rae, a
retired IAS officer of 1978 batch and Rathin Roy, an economist.
Sixth
Pay Commission was implemented with effect from January 1, 2006, the fifth from
January 1, 1996 and the fourth from January 1, 1986.
