In what seems as a stealth move that may well present a fait accompli to minister Ghulam Nabi Azad,the health ministry has raised the rates of subscription to the Central Government Health Scheme (CGHS) with effect from June 1,2009. Nearly 35 lakh Central government employees and pensioners will now shell out about four times more money than the current rate adding up to an annual amount of nearly Rs 1,200 crore.
The ministry justifies the move,saying there is financial pressure on the scheme because of the revision of pay and pension of the medicos after the Sixth Pay Commission. The upward revision of pay/pension of the CGHS staff has increased the cost of operation,it says.
Interestingly,the order to this effect came on May 20,just a few days before the UPA took charge. This order was issued in supersession of all earlier instructions in this connection. The move may raise some eyebrows given the seeming hurry it could not wait for a few more days when the new minister would have taken charge. The increase in premium might also go to make the CGHS vulnerable to private compitition.
The employees now paying Rs 10 will have to pay Rs 50,while those currently paying Rs 100 will have to pay Rs 325. Similarly,in the highest bracket,those paying Rs 125 will now pay Rs 500,which is a fourfold increase. Considering an average contribution Rs 300 per month,it adds up to nearly Rs 100 crore a month,about Rs 1,200 annually.
According to the new revision,the entitlement for free diet has also been upwardly revised. Now,a person having pay/pension/family pension up to Rs 7,450 per month will be eligible in normal ailment. In case of TB/mental diseases,the band is of Rs 11,160 per month,the order says. However,those retired employees who have secured a life-time CGHS card by paying a lump sum amount equivalent to 10 years contribution will not be required to pay any additional amount as part of the revision in the rates of contribution,the order says.


