Another Big Gift After 8th Pay Commision. CGHS Limit Increased After 15 Years.

The Central Government has given another gift to its employees and pensioners. After increasing the Dearness Allowance (DA), the government has now made a major reform in the Central Government Health Scheme (CGHS) by revising the package rates for medical procedures.

On 3rd October 2025, the government announced revised rates for about 2,000 medical procedures, marking the biggest change in the last 15 years. These new rates will come into effect from 13th October 2025. The earlier rates had become outdated, creating challenges for both hospitals and beneficiaries. The revision is expected to resolve long-pending issues and streamline healthcare access for central employees and pensioners.

🔹 What’s Included in the New Revision

The new rates will vary depending on the city category (Tier-I, Tier-II, Tier-III) and the hospital quality standards such as NABH accreditation.

• Tier-II cities: 19% lower than the base rate

• Tier-III cities: 20% lower than the base rate

• NABH-accredited hospitals: Will charge base rate

• Non-NABH hospitals: 15% lower rates

• Super-specialty hospitals (200+ beds): 15% higher rates

💊 Key Benefits for Employees and Pensioners

• Cashless treatment becomes easier – Hospitals will find the new package rates practical, ensuring more seamless cashless care.

• Reduced out-of-pocket expenses – Beneficiaries won’t need to pay large sums upfront.

• Simplified reimbursement process – Delays in repayment will be minimized.

• Better access to trusted hospitals – CGHS cardholders can now approach empaneled hospitals with greater confidence.

🩺 Why This Reform Was Needed

For years, central government employees and pensioners faced difficulties because hospitals often refused cashless treatment, citing low and outdated CGHS package rates. Patients had to pay large amounts upfront and then wait months for reimbursement.

Hospitals argued that the government’s rates were too low and payments were delayed. In August 2025, the National Federation of Central Government Employees (GENC) submitted a memorandum highlighting this issue, demanding a fair revision to protect employees’ financial and health interests.

This reform finally addresses those long-standing concerns and ensures smoother collaboration between hospitals and CGHS beneficiaries across India.