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ECHS: FM Sitharaman denies withholding funds; blames billing discrepancies for payment delays

"I would like to clarify that ex-servicemen are not being denied hospital treatment due to pending payments," said the FM.
March 17, 2026 / 22:51 IST
Finance Minister Nirmala Sitharaman (file image)
Snapshot AI
  • Govt: No ECHS funds withheld for ex-servicemen
  • ECHS payment delays due to billing verification, not fund issues
  • Govt ensures continuous healthcare for ex-servicemen

Finance Minister Nirmala Sitharaman said on Tuesday that the Centre is addressing issues with regards to Ex-Servicemen Contributory Health Scheme (ECHS), and stated that no funds are being withheld by the government.

"I would like to address the concern raised regarding the Ex-Servicemen Contributory Health Scheme (ECHS) and the provision of medical treatment to our ex-servicemen. We have also made provisions for contingencies to ensure that any such requirements are adequately met, as this is a matter of utmost importance," said the FM.

ECHS--launched on April 1, 2003--is a government-funded healthcare program in India designed to provide comprehensive, cashless medical care to retired Armed Forces personnel and their eligible dependents. At present, the total strength of the ex-servicemen and their dependents across the country is around 67 lakh.

On December 4, South Goa Member of the Parliament (MP) Captain Viriato Fernandes (retd), had told Lok Sabha that Goa’s only hospital, empanelled with Ex-Servicemen Contributory Health Scheme (ECHS), has halted services to defence veterans owing to non-payment of bills amounting to Rs 5.2 crore by the defence ministry.

Fernandes had noted that the root cause for the halt in services is the “systemic failure of the defence ministry to release ECHS funds in a timely and adequate manner”. The same was echoed by the Comptroller and Auditor General (CAG) of India. On December 18, in a report tabled in the Parliament, the CAG said that there were delays in payment to empanelled hospitals and reimbursement of individual claims of beneficiaries. And this resulted in empanelled hospitals opting out of the ECHS.

"I would like to clarify that ex-servicemen are not being denied hospital treatment due to pending payments. However, there have been certain issues with some empanelled hospitals where accounts have not been maintained in a fully transparent manner. The Department of Ex-Servicemen Welfare is actively addressing these matters," said the FM.

"Hospitals are required to provide proper explanations for discrepancies and mismatches in billing. As a result of such verification processes, there may occasionally be delays in payments. However, these delays are not due to any withholding of funds by the government. I would like to emphasize that the government remains fully committed to ensuring uninterrupted and quality healthcare services for our ex-servicemen," she added.

Priyansh Verma

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