Good news for central government employees and pensioners! The central government has made major changes to the Central Government Health Scheme (CGHS) rates, effective October 13, 2025. In the wake of this revision in rates, a new billing process and digital system (TMS 2.0) have also been implemented.
These changes are expected to benefit approximately 4.6 million CGHS beneficiaries. The government states that the new rates are based on hospital accreditation, city category, hospital type, and patient ward.
What’s the big change: Rate revision after 10 years
The last major increase in CGHS rates was in 2014. Since then, only a few minor revisions have occurred.
Employees and pensioners used to complain that due to the old rates, many hospitals refused to provide cashless treatment, forcing patients to bear the cost out of their own pockets and receiving refunds that took months.
Private hospitals had their own arguments, stating that rates were not covering existing medical costs. This is why the government has now revised the rates, making the entire system digital.
New System: TMS 2.0 and Digital Cards Required
CGHS has now migrated to the National Health Authority (NHA) platform — under TMS 2.0, UMP, and HEM 2.0.
Under this new system, patients will be required to submit an OTP verification upon receiving treatment at the hospital. This requires the beneficiary’s mobile number to be updated in the CGHS database.
If the mobile number is outdated or not registered, it can be updated by visiting the nearest CGHS Wellness Center.
The digital CGHS card will also be valid—beneficiaries can download it from the CGHS website, from the ‘My CGHS 2.0’ mobile app, or show it through DigiLocker.
Different CGHS rates before and after October 13th
Under the new billing system:
New CGHS rates are being applied to all services from October 13th, 2025 (12 midnight).
Services provided until October 12th, 2025, will be billed at the old rates.
Furthermore, if the hospital charges for any ‘inadmissible’ item, a separate bill/receipt will be issued. This bill will not be claimed from CGHS.
Emphasis on transparency and patient consent
The government has directed hospitals to take geotagged photographs at the time of treatment to maintain transparency. Additionally, at the time of discharge, every patient or their attendant will be required to fill out a feedback form, which will also include whether the hospital charged any additional fees during treatment.
Strictness on Grievances and Misuse
It has been made mandatory to establish a Grievance Redressal Desk in every empanelled hospital. If a beneficiary receives any suspicious message or fraudulent information, they must immediately inform the office of the relevant Additional Director (AD City).
The government has warned that action will be taken against both the beneficiary and the hospital for misuse of the CGHS card.
Major Decision Taken on Demand of Employee Unions
For the past few months, employee unions have been demanding a revision of CGHS rates.
In August 2025, the National Federation of Central Government Employees Unions submitted a memorandum to the government stating that the lack of cashless treatment was causing significant difficulties for employees and pensioners.
Following this, the government took this important decision.