In a major boost for over 11 million central government employees and pensioners, the Centre has announced the biggest overhaul of the Central Government Health Scheme (CGHS) in 15 years—revising package rates for nearly 2,000 medical procedures, effective October 13, 2025.

The move follows longstanding complaints from beneficiaries who were routinely denied cashless treatment at CGHS-empanelled hospitals. “Hospitals refused service or demanded upfront payment because old package rates were outdated and reimbursements were delayed,” the National Federation of Central Government Employees Unions (GENC) stated in a recent memorandum. Advertisement

The government’s new pricing structure addresses this. Rates will now vary by city tier and hospital accreditation:

Tier-II cities: 19% lower

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