Big boost for CG employees: Govt overhauls CGHS rates

October 6, 2025 Hot from the Oven Valli Sarvani

In a major move to improve healthcare services, the central government has revamped the CGHS (Central Government Health Scheme) after years of complaints.

This overhaul brings new treatment rates for around 2,000 medical procedures, coming into effect from October 13, 2025.

The decision follows rising frustration among government employees and pensioners.

Many faced delays in reimbursements and were denied cashless treatment at private hospitals.

Hospitals, too, claimed the rates were outdated and payments were often delayed.

To address these concerns, the government has revised package rates based on city categories and hospital types.

This is the most significant change in CGHS in the last 15 years.

Key highlights of the revision:

Tier-II cities will have rates 19% lower than the base.
Tier-III cities will get rates 20% lower than the base.
NABH-accredited hospitals will follow the base rate.
Non-NABH hospitals will be paid 15% less.
Large super-speciality hospitals with over 200 beds will get 15% more.

This reform aims to streamline payments and attract more private hospitals to the CGHS network.

With fair pricing and updated rates, hospitals are expected to offer cashless services more willingly.

Earlier, patients had to pay large sums upfront and wait months for refunds.

Now, with improved rates, the system is expected to reduce financial pressure on patients and delays in care.

In August 2025, the National Confederation of Central Government Employees (GENC) formally raised these issues with the government. The response has been swift and impactful.

This step is not just about numbers; it’s about access, dignity, and timely care.

The CGHS reform ensures fair hospital payments and patient support, aiming to improve healthcare access and affordability for lakhs of central government employees and pensioners across India.

With this update, the Modi government aims to strengthen healthcare delivery for those who serve the nation, ensuring better treatment without the financial stress.

Image Credit: Cabblow, CC BY-SA 4.0, via Wikimedia Commons