New Delhi: Citing a dispute over the reimbursement rates offered by Bajaj Allianz General Insurance Company, the Association of Healthcare Providers India (AHPI) has advised its member hospitals in North India to stop providing cashless treatment facilities for policyholders of the insurer.
In its note, AHPI alleged that during discussions for a new contract, the insurance company refused to revise hospital reimbursement rates in line with rising medical costs and further pressured hospitals to reduce tariffs that were agreed upon in the previous cycle.
Additionally, the body stated that its member hospitals have reported complaints of unilateral deductions by the company, delays in payments, and “unduly high time” taken for issuing pre-authorisation (required for starting cashless treatment) and pre-discharge approvals.
The body has also issued a similar notice to Care Health Insurance, demanding a response by August 31, 2025. Should no resolution be reached, member hospitals will cease providing cashless services to Care Health Insurance policyholders.
“We continuously strive to improve efficiency and control costs, but continuing at outdated rates is unsustainable and risks compromising patient care. We will not accept this,” said Dr. Girdhar Gyani, Director General, AHPI.
“After a meeting with our members, AHPI hospitals across the country have now resolved to suspend cashless services for beneficiaries of Bajaj Allianz Insurance Company from September 1, 2025,” he added.
“Until fair and sustainable tariff agreements are reached, we advise providers to temporarily suspend cashless services for customers of Bajaj Allianz Insurance Company,” AHPI said.
However, member hospitals will continue treatment for cash-paying patients who seek reimbursement from their insurer on a post-treatment basis, it added.
Subsequently, the hospitals’ body served a similar notice to Care Health Insurance, demanding a response by August 31, 2025. It warned that if the issue remains unresolved, member hospitals will “discontinue services for Care Health Insurance policyholders as well.”
According to AHPI, India experiences annual medical inflation of 7–8 per cent, driven by rising prices of consumables, utilities, and other overheads, and continuing with the same rates is creating an unsustainable situation for healthcare providers.
