Major Relief for Central Government Employees and Pensioners, New Government Announcement

Central Employees Update: If you are a central government employee or pensioner, this news may be very important for you. The lengthy filing process for reimbursement of large medical bills is about to end. The Ministry of Health issued an Office Memorandum (OM) on February 16, 2026, increasing the approval limit for medical claims. Let’s explore this in detail.

Direct Approval Up to Rs. 10 Lakh

Now, Heads of Departments (HODs) can directly approve medical claims up to Rs. 10 lakh without consulting the Integrated Finance Division (IFD). Previously, this limit was only Rs. 5 lakh. This means that bills under Rs. 5 lakh will no longer require a lengthy process.

If the bill is within the government rate, the claim will be settled quickly. However, if the hospital bill exceeds the government rate and you want a discount, it will still go to higher authorities.

Increase in Settlement Limit

The Ministry of Health has also decided to increase the settlement limit from ₹2 lakh to ₹5 lakh in cases where no discounts are applied, and payment is made solely at CGHS rates. This means that large bills can now be settled faster.

How to Claim

The process is now simpler for pensioners and employees. An application must be submitted to the CMO of their wellness center within 6 months of treatment or discharge.

Learn about the required documents:

A copy of the discharge summary and referral/permission slip

Emergency certificate (if applicable)

Original hospital bills and receipts

Copy of a valid CGHS card and a canceled check for bank details

Ambulance Expenses

Ambulance expenses can also be reimbursed. The condition is that an ambulance will be available within the city only if the doctor states in writing that transporting the patient by another vehicle could pose a risk to the patient. This new decision will bring significant relief to millions of central government employees and pensioners. They will no longer have to wait months for their medical bills to be refunded.

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