AHPI noted that tariffs had not been revised by Bajaj Allianz for many years, leading to undue financial stress on hospitals
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The impasse between the Association of Healthcare Providers of India (AHPI) and Bajaj Allianz General Insurance Company on cashless health insurance has been resolved for now, with AHPI revoking the order to suspend these services, that were to kick in on September 1.
The decision follows a meeting between representatives on both sides, much to the reprieve of several policy holders. “Bajaj Allianz agreed to submit formal actions to AHPI by September 29, 2025,” AHPI said, referring to the contentious issues listed out for discussion between both.
Responding to the latest development, Bajaj Allianz General Insurance Managing Director and CEO Tapan Singhel said, “We are pleased that the matter has been resolved in the interest of policyholders and citizens who must never face interruptions in their access to cashless healthcare. Cashless access is the backbone of health insurance and should never be compromised.
Singhel, also Chairman of the General Insurance Council, said insurers have always worked directly with hospitals to address operational realities. “And we will continue to do so in a spirit of partnership,” he added. According to him, episodes of this nature only reinforce the urgent need for a “strong health regulator” which general insurance companies and standalone health insurance companies (SAHIs) have been proposing for a while now to safeguard citizens’ interests and ensure “transparency and fairness” across the healthcare ecosystem.
“Every stakeholder, including hospitals insurers and policymakers, must work together not just to maintain uninterrupted services, but to build enduring trust. Our guiding principle has always been simple and clear, citizens must come first and their right to quality healthcare must always be protected,” Singhel pointed out.
Contentious issues
Among the issues on AHPI’s eight-point agenda was “new empanelment”. AHPI alleged that insurers delayed empanelling new hospitals with “endless discussions and commercial negotiations…Of late, the GIC (General Insurance Council)-led common empanelment process is being mooted,” it said.
Another repeated refrain of the healthcare providers is that “Insurers have not revised rates for years, leading to undue financial stress on the hospitals.” AHPI members “are being threatened that unless they reduce rates, cashless services will be stopped. The insurers are coming up with similar rates – clearly colluding with each other and using collective bargaining to pressurise the hospitals,” the Association alleged.
The Association further claimed that “member hospitals face deductions at the time of payments and settlements.” For example, during cashless authorisation, “certain items like implants are left open. However, when the bill is presented, even for implants with reputed manufacturers, the cost is disputed, and deductions made for the differential cost.”
The Association also pointed to advanced interventions, saying that “insurers dispute payments related to new medical technologies such as Robotics and new age cancer drugs.” ‘
Touching on clinical decisions made by doctors, the Association said, “insurers are increasingly questioning the clinical decisions of the treating doctors, pushing for the usage of cheaper drugs/ implants, which may not be in the interest of the patient.”
Insurers are often issues “pre-AUTHs, stipulating that hospitals cannot charge patients with consumables etc, which they themselves are unwilling to pay for”, the AHPI said.
A key contention was that AHPI member hospitals were “threatened with stoppage of cashless services on frivolous grounds,” it said. Girdhar Gyani, Director-General of AHPI, called on insurers to revise “outdated rates”, set up transparent grievance mechanisms, and respect clinical autonomy.
Published on August 29, 2025
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