Finance Ministry Launches ‘Paripoorna Mediclaim Ayush Bima’ for CGHS Beneficiaries

Union Finance Ministry has launched a new optional health insurance scheme for CGHS beneficiaries. Named Paripoorna Mediclaim Ayush Bima, the policy offers enhanced hospitalisation coverage with flexible premium options. The initiative aims to supplement existing CGHS benefits and provide greater financial protection against rising medical costs.

Why in News?

On January 14, 2026, the Ministry of Finance launched Paripoorna Mediclaim Ayush Bima, a new retail health insurance policy offering coverage of up to ₹20 lakh exclusively for beneficiaries of the Central Government Health Scheme (CGHS).

What is Paripoorna Mediclaim Ayush Bima?

• Paripoorna Mediclaim Ayush Bima is an optional retail health insurance policy designed to complement CGHS benefits. It provides indemnity-based in-patient hospitalisation coverage within India.
• Beneficiaries can choose a sum insured of ₹10 lakh or ₹20 lakh, making it suitable for both routine and high-cost medical needs.
• The scheme is intended to offer seamless healthcare access, improved coverage flexibility, and enhanced financial confidence for central government employees and pensioners covered under CGHS.

Key Coverage Features and Co-Payment Options

• The policy introduces flexible co-payment models, allowing beneficiaries to choose between 70:30 or 50:50 cost-sharing between the insurer and the subscriber.
• In return, subscribers receive discounted premiums of 28% and 42%, respectively, compared to regular health insurance policies.
• This structure gives beneficiaries control over premium costs while retaining substantial insurance protection.
• The scheme is positioned as a cost-effective alternative to high-premium comprehensive health covers.

Insurer and Additional Benefits

• The scheme is offered by state-run New India Assurance. Additional features include room rent caps of 1% of the sum insured for normal rooms and 2% for ICU per day.
• A cumulative bonus of 10% is provided for every claim-free year, up to a maximum of 100% of the sum insured.
• The policy also covers pre-hospitalisation expenses for 30 days and post-hospitalisation expenses for 60 days, enhancing overall treatment coverage.

Linked Salary Account Initiative

• Alongside the insurance launch, the Department of Financial Services introduced a Composite Salary Account Package for central government employees in collaboration with public sector banks (PSBs).
• This unified framework offers a single-window solution combining salary accounts, banking services, and insurance benefits.
• The initiative aims to provide modern banking access and comprehensive financial protection for government employees, who play a crucial role in public administration.

Significance for CGHS Beneficiaries

• The new scheme addresses long-standing concerns of CGHS beneficiaries regarding limited coverage for high-cost treatments.
• By offering a voluntary, discounted, and flexible insurance option, the government has strengthened healthcare affordability and risk protection.
• The initiative is also aligned with broader goals of financial inclusion, social security, and healthcare resilience.

Background of CGHS and Health Insurance

• The Central Government Health Scheme (CGHS) provides healthcare services to serving and retired central government employees and their dependents.
• While CGHS offers extensive medical benefits, optional insurance products like Paripoorna Mediclaim Ayush Bima help bridge gaps in advanced or high-expense treatments, especially in private healthcare facilities.

Key Summary at a Glance

Question

Q. Paripoorna Mediclaim Ayush Bima is launched for beneficiaries of which scheme?

A. Ayushman Bharat
B. ESIC
C. Central Government Health Scheme
D. PM-JAY