Fixed Medical Allowance (FMA) Proposal for Pensioners

Fixed Medical Allowance (FMA) Proposal for Pensioners

Introduction:
To address the healthcare needs of elderly pensioners and reduce overcrowding in hospitals, we propose raising the Fixed Medical Allowance (FMA) for Central Government (C.G.) Pensioners to at least Rs 5000/- per month, without any distance restrictions. This will encourage pensioners to opt out of OPD services while ensuring necessary financial support for their healthcare.

Justification for FMA Increase

1. Historical Government Estimates

   • The Committee of Secretaries (COS) meeting on 15.04.2010 cited CGHS OPD expenses at Rs 1369 per month for serving personnel (2007-08 estimates).
   • Adjusting for inflation over 16 years, OPD costs have significantly increased.

2. DRPSC Report to Rajya Sabha (2021)

   • The Department-Related Parliamentary Standing Committee (DRPSC) Report 110 (presented on 10.12.2021) recommended Rs 3000/- per month for FMA.
   • By 1.1.2026 (likely 8th CPC implementation date), inflation-adjusted costs will exceed Rs 5000/- per month.

Key Requests & Suggestions

1. Increase FMA to Rs 5000/- Per Month

   • Remove distance restrictions to ensure all pensioners, irrespective of location, receive the benefit.
   • This will reduce hospital overcrowding by incentivizing OPD opt-outs.

2. Link FMA to Dearness Relief (DR)

   • Ensuring automatic revision of FMA with rising medical costs, similar to pension adjustments.

3. Tax Exemption on FMA

   • Medical reimbursements are non-taxable; FMA, being a compensatory allowance for OPD expenses, should be exempt from Income Tax.

Conclusion

A revised FMA of Rs 5000/- per month, linked to Dearness Relief, with no distance restrictions and tax exemption, will provide much-needed financial relief to elderly pensioners. We urge the government to implement this under the 8th CPC proposals to ensure affordable and accessible healthcare for all pensioners.

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