The ECHS has made a major change in treatment rates. The Ex-Servicemen Contributory Health Scheme (ECHS) has decided to adopt the new package rates of the Central Government’s CGHS. According to a notification issued by the Ministry of Health on October 3, 2025, these new rates will become effective December 15, 2025.
The ECHS has made a major change in treatment rates. The Ex-Servicemen Contributory Health Scheme (ECHS) will now adopt the Central Government’s new CGHS rate package. The Ministry of Health issued a notification regarding this on October 3, 2025. These new rates will be effective from December 15, 2025. This will directly benefit ex-servicemen and their families who receive treatment at ECHS-empanelled hospitals. Under the new rules, the updated CGHS rates will be directly applicable to all OPD and IPD services and medical reimbursement claims.
According to a report published in the Economic Times, starting December 15, treatment at all ECHS-affiliated hospitals will be provided at these new CGHS rates. Furthermore, these new rates will also apply to reimbursement claims made by beneficiaries. Service pensioners and other authorized categories will continue to receive cashless treatment as before. The new rates list considers semi-private wards. However, OPD consultations, investigations, radiotherapy and day-care procedures will not be affected by the patient’s ward eligibility and their rates will remain the same for all.
New rates will provide relief to employees
According to the report, the biggest changes in the new rates are based on the quality of the hospital and the city category. Hospitals without NABH or NABL accreditation will see their rates reduced by 15%, while super-specialty hospitals will receive 15% more than the standard NABH rates. Similarly, compared to Tier-I cities, rates for Tier-II cities will be 10% lower, and rates for Tier-III cities will be 20% lower.
The North-Eastern states, Jammu and Kashmir, and Ladakh have also been placed in the Y-category. This means that the location of the hospital and its quality will now determine the total cost of treatment. The new list considers semi-private wards as the basis for ward eligibility.
New rates will be determined by this formula
ECHS has also clarified the formula for calculating rates. If A is the base price of the package, A – 5% will be added to the bill for general wards, A for semi-private wards, and A + 5% for private wards. The hospital will calculate this based on the ward entitlement listed on the patient’s ECHS card. ECHS is a major government scheme providing affordable, streamlined, and reliable healthcare to veterans and their families across the country, offering cashless treatment through military hospitals, polyclinics, and private panel hospitals.
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