In a significant move aimed at resolving long-standing healthcare access issues, the Municipal Corporation of Delhi (MCD) has rolled out a new cashless medical treatment scheme for its serving employees and their families. This initiative is designed to provide cashless indoor treatment for approximately 1.4 lakh employees and their dependants at private hospitals associated with the Central Government Health Scheme (CGHS).
Overcoming Past Financial Hurdles
The launch of the MCD Employees' Health Scheme comes after the previous medical plan collapsed due to the civic body's severe financial crisis. Officials explained that delayed payments to hospitals led to many establishments refusing treatment to both current staff and pensioners. Under the old system, serving employees had to pay hospital bills upfront and wait for reimbursement, while pensioners were supposed to receive cashless care—a promise that often went unfulfilled.
"The financial crunch meant we couldn't clear pending hospital bills, causing serious inconvenience," a senior MCD official stated, highlighting the need for a sustainable new model.
How the New Cashless Scheme Works
The cornerstone of the revised framework is a mandatory monthly contribution from the salaries of all regular in-service employees. The amount will range from Rs 250 to Rs 1,000, depending on the employee's pay scale. These funds will be pooled into a dedicated escrow account created specifically for the scheme.
"Since not all employees require treatment simultaneously, this pooled fund will allow for efficient cashless treatment," the official added. The corporation is also planning to extend this model to pensioners in the future. Payments for treatments will be made directly by the MCD to the hospitals, eliminating out-of-pocket expenses for covered procedures.
Scope, Limitations, and Emergency Provisions
The scheme's coverage is tied to the CGHS package rates. Treatments or procedures that fall outside these predefined rates will not be eligible for cashless payment; for such cases, the existing reimbursement process will remain. The MCD is currently in the process of fresh empanelment of private hospitals and revising Memoranda of Understanding (MoUs) to facilitate this cashless service.
For emergencies, accidents, or other exceptional situations, the order allows beneficiaries to visit the nearest available hospital. However, cashless treatment will not apply in these scenarios. Reimbursement for such emergency treatments will be limited to the rates applicable under CGHS for Delhi. Furthermore, employees can continue to access medical services at all MCD health units free of charge, and reimbursement for treatment in government hospitals will follow the Central Services (Medical Attendance) Rules, 1944.
This revamped health scheme represents a structured effort by the MCD to provide reliable healthcare to its workforce, learning from the failures of the past and establishing a financially viable system for the future.
