Telangana Launches New Cashless Health Scheme for 38 Lakh Government Employees, Pensioners and Dependents

Hyderabad, July 2026 : In a major welfare initiative for its workforce, the Telangana government on Friday launched the New Employees Health Scheme (NEHS), offering comprehensive cashless healthcare facilities to government employees, pensioners and their dependent family members. The scheme is expected to benefit nearly 38 lakh people, significantly expanding access to quality medical care across the state.

Deputy Chief Minister Mallu Bhatti Vikramarka, along with Health Minister Damodar Rajanarasimha, formally launched the scheme at the State Secretariat. During the event, they distributed health cards to employees and unveiled the dedicated NEHS digital portal, which will serve as the central platform for registration, hospital access and claims processing.

The new scheme has been designed to provide quality, accessible and affordable healthcare through a completely cashless treatment model. It aims to improve transparency, simplify medical procedures and ensure seamless digital services while expanding the network of empanelled hospitals available to beneficiaries.

According to the government, the initiative will directly benefit around eight lakh government employees and pensioners, along with 29.8 lakh dependent family members. Beneficiaries will be able to receive cashless inpatient treatment at 886 empanelled private hospitals spread across Telangana.

The scheme covers 1,816 medical procedures, surgeries and treatments, with package rates aligned to the Central Government Health Scheme (CGHS), ensuring uniformity in treatment costs and healthcare standards. Officials believe this will provide employees access to advanced medical care without the burden of out-of-pocket expenses.

Addressing the gathering, Deputy Chief Minister Bhatti Vikramarka said the government had established a special trust to administer the scheme. The trust includes equal representation from government officials and employee union representatives to ensure transparency, accountability and smooth implementation.

He described the initiative as a reflection of the government’s commitment to building a strong health security system for its employees. According to him, the scheme was introduced with the objective of giving government staff and their families confidence that quality medical treatment would always be available whenever required.

The Deputy Chief Minister said the government had closely observed the financial hardships faced by many employees who were forced to borrow money or incur heavy debts to meet medical expenses during serious illnesses. He noted that the present government had introduced the cashless healthcare programme to eliminate such financial stress and provide comprehensive medical protection.

Calling the NEHS a symbol of the government’s concern for its employees, Bhatti Vikramarka said Chief Minister A. Revanth Reddy viewed government employees as members of the state’s extended family. With this vision, the Chief Minister constituted a Cabinet sub-committee to study the issues faced by employees and recommend long-term solutions.

Bhatti Vikramarka chaired the committee, while Ministers Duddilla Sridhar Babu, Ponnam Prabhakar and Seethakka served as its members. He said the committee held extensive consultations with employee organisations before finalising the policy framework that ultimately resulted in the New Employees Health Scheme.

The Deputy Chief Minister also criticised the previous Bharat Rashtra Samithi (BRS) government, alleging that it had neglected employee welfare and left pending bills amounting to nearly Rs 10,000 crore. He said the present government had adopted a humanitarian approach by systematically clearing these dues.

He revealed that nearly Rs 2,000 crore is being released every month to settle outstanding bills and added that he personally reviews the progress every fortnight to ensure that pending payments are cleared without delay.

Highlighting the government’s broader welfare agenda, Bhatti Vikramarka said education and healthcare remain the top priorities of the Revanth Reddy administration. He pointed out that the state had already doubled the Rajiv Arogyasri health insurance coverage from Rs 5 lakh to Rs 10 lakh, enabling over 1.06 crore eligible families to access free corporate-level medical treatment.

The Deputy Chief Minister urged government employees to reciprocate the government’s commitment by serving the public with renewed dedication and efficiency. He appealed to them to act as a bridge between the government and citizens by effectively implementing flagship welfare programmes, including the supply of quality rice to poor families, free bus travel for women, free electricity for farmers and 200 units of free electricity for eligible households.

Chief Secretary Sanjay Jaju, Health Principal Secretary Dr Christina Z. Chongthu, Education Secretary Yogita Rana, senior government officials and leaders of various employee unions were present at the launch ceremony. The government expressed confidence that the new health scheme would strengthen employee welfare while ensuring timely access to high-quality healthcare across Telangana.