CGHS New Rule: The Central Government has changed an important rule for serving employees under the Central Government Health Scheme (CGHS). Employees who live or are posted outside the CGHS-covered area can now choose to join the scheme.
The change was announced through an Office Memorandum issued by the Ministry of Health and Family Welfare on September 17, 2026. The new rule has taken effect immediately.
Earlier, an employee’s location played a major role in deciding CGHS eligibility. Serving employees outside the prescribed CGHS area were generally covered under the Central Services (Medical Attendance) Rules, 1944, also called CS(MA) Rules.
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The government has now removed this geographical condition after reviewing the problems faced by employees living or working in places where CGHS facilities aren’t available. The ministry said it has decided to “completely remove the existing geographical criterion” for deciding the eligibility of serving central government employees for CGHS facilities.
One-Time Choice to Join CGHS
Employees who are currently covered under CS(MA) Rules only because they live or work outside the CGHS area can now make a one-time choice to become CGHS beneficiaries. They still have to meet all other eligibility rules and pay the required CGHS contribution or subscription.
This choice can’t be changed later. Once an employee opts for CGHS, the decision will be final and binding, subject to the applicable eligibility conditions. The choice made by the main beneficiary will also cover all eligible dependents.
A family can’t divide its medical benefits between CGHS and CS(MA).
CGHS And CS(MA) Benefits: What Changes?
The two systems work differently. Under CS(MA) Rules, eligible employees can claim reimbursement for medical treatment and medicines. CGHS beneficiaries can use cashless medical facilities under the scheme at eligible facilities.
However, an employee or family can’t use both CGHS and CS(MA) medical benefits at the same time. Those choosing CGHS also won’t get TA/DA for travelling to receive treatment or obtain medicines under CGHS. An undertaking is required confirming that neither the employee nor eligible family members will claim benefits under both systems.
Employees who live or work within a CGHS-covered area will continue to be covered under CGHS mandatorily. They can’t choose CS(MA) instead. Those eligible for the new option who don’t choose CGHS will continue under the CS(MA) Rules, 1944.
