Does Employer Health Insurance And Central Government Health

Employer Health Insurance

The accessibility and quality of health services often vary across different segments of the population. Two significant players in this scenario are employer health insurance and the Central Government Health Scheme (CGHS). While both aim to provide health coverage, the question that arises is whether relying on both constitutes a double standard or a strategic move towards comprehensive healthcare. In this exploration, we’ll navigate the nuances of employer health insurance and CGHS, dissecting their roles, and examining whether the combination is a harmonious partnership or a potential source of disparity.

Understanding employer health insurance:

Employer health insurance is a benefit provided by companies to their employees, offering coverage for medical expenses and ensuring a degree of financial protection in times of illness. This form of health coverage is part of the employee benefits package, playing a pivotal role in attracting and retaining a talented workforce.

Key features of employer health insurance:

  1. Comprehensive coverage: Employer health insurance plans are designed to offer comprehensive coverage, often encompassing hospitalization, surgeries, diagnostics, and sometimes even maternity benefits. The aim is to provide a safety net for employees, addressing a range of healthcare needs.
  2. Cost sharing: The cost of employer health insurance is typically shared between the employer and the employee. This cost-sharing mechanism enhances affordability, making health coverage accessible to a broader spectrum of the workforce.
  3. Tailoring to workforce needs: Employers have the flexibility to tailor health insurance plans to the specific needs of their workforce. This can include the addition of riders for critical illnesses, dental coverage, or other benefits, ensuring that the coverage aligns with the diverse healthcare requirements of employees.

Introduction to Central Government Health Scheme (CGHS):

On the governmental front, the Central Government Health Scheme (CGHS) is a health service that provides comprehensive medical care to the Central Government employees and pensioners. CGHS is a significant initiative by the government to ensure that those in public service have access to quality healthcare without financial constraints.

Key features of CGHS:

  1. Extensive network of dispensaries and hospitals: CGHS operates through a network of dispensaries and empanelled hospitals across the country. This network ensures that beneficiaries have access to a wide range of healthcare services, including consultations, diagnostics, and hospitalization.
  2. Cashless transactions: Similar to employer health insurance, CGHS facilitates cashless transactions, easing the financial burden on beneficiaries. The direct settlement mechanism at empanelled hospitals simplifies the payment process, ensuring a seamless healthcare experience.
  3. Coverage for dependents: CGHS extends its coverage to the dependents of Central Government employees and pensioners, providing a family-oriented approach to healthcare. This ensures that the health needs of the entire family unit are taken into consideration.

Examining the dual approach: Employer Health Insurance and CGHS:

  1. Addressing different segments: One perspective is that employer health insurance and CGHS cater to different segments of the population. Employer health insurance is accessible to those in the private sector, ensuring that employees of various industries have healthcare coverage. On the other hand, CGHS targets Central Government employees and pensioners, providing healthcare services to those serving the public sector.
  2. Potential disparities in coverage: While the intention is to provide healthcare coverage to all, the combination of employer health insurance and CGHS can lead to potential disparities. Employees in the private sector may have varying levels of coverage, depending on their employer’s policies, while those in the public sector may have access to CGHS with standardized benefits. This dual approach could inadvertently create discrepancies in the extent and quality of healthcare coverage.
  3. Comprehensive healthcare safety net: Another viewpoint is that the combination of employer health insurance and CGHS can create a comprehensive healthcare safety net for individuals and their families. Employer health insurance may cover a broader spectrum of medical expenses, including critical illnesses, while CGHS can provide specialized services through its network of hospitals and dispensaries.

Points to consider for employees:

  1. Understanding the scope of coverage: Employees should thoroughly understand the scope of coverage offered by their employer’s health insurance plan. This includes the range of medical expenses covered, any exclusions, and the process for claims.
  2. Evaluating CGHS benefits: For those eligible for CGHS, a careful evaluation of the benefits offered is crucial. Understanding the network of hospitals, the coverage for specific medical treatments, and the process for availing services is essential.
  3. Assessing potential gaps: Employees should assess whether there are potential gaps in coverage between their employer health insurance and CGHS. Identifying these gaps can help in making informed decisions about additional coverage or the need for supplementary insurance.


The combination of employer health insurance and the Central Government Health Scheme can be viewed as a strategic approach towards achieving comprehensive healthcare coverage. However, it requires careful consideration and evaluation to ensure that there are no unintended disparities in the level and quality of coverage. Employees should actively engage in understanding the intricacies of both schemes, assessing their individual healthcare needs, and making informed decisions to bridge potential gaps.

Ultimately, the goal is to create a healthcare safety net that caters to the diverse needs of individuals and their families. Whether in the private or public sector, access to quality healthcare is a fundamental right, and the dual approach of employer health insurance and CGHS should contribute to fostering a healthier and more secure society.