The Association of Healthcare Providers India (AHPI) has issued an advisory to its member hospitals in North India, recommending the suspension of cashless treatment facilities for Bajaj Allianz General Insurance Company policyholders. This move arises from a dispute concerning reimbursement rates, which the AHPI claims have not been revised to align with rising medical costs.
In response to concerns over increasing medical expenses, AHPI alleged that Bajaj Allianz refused to adjust hospital reimbursement rates. Additionally, complaints from member hospitals included unilateral deductions, payment delays, and “unduly high time” taken for pre-authorisation and pre-discharge approvals necessary for cashless treatments.
According to a report in Economic Times, Dr Girdhar Gyani, Director General of AHPI, stated: “We continuously strive to improve efficiency and control costs, but continuing at outdated rates is unsustainable and risks compromising patient care.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.” Following discussions with member hospitals, it has been resolved that AHPI hospitals will suspend cashless services for Bajaj Allianz beneficiaries starting September 1, 2025.
“Until fair and sustainable tariff agreements are reached, we advise providers to temporarily suspend cashless services for customers of Bajaj Allianz Insurance Company,” it said, as per the report. However, treatment will continue for cash-paying patients seeking reimbursement post-treatment. This ensures that while cashless services are paused, patients can still access necessary medical care.
Beyond Bajaj Allianz, AHPI has also issued notice to Care Health Insurance, demanding resolution by August 31, 2025. If unresolved, AHPI warns that member hospitals will “discontinue services for Care Health Insurance policyholders as well”. In defence, Manish Dodeja, COO of Care Health Insurance, expressed surprise at the situation, stating: “We are surprised to see this reportage as we are in receipt of a mail from only today and the said communication is generic and does not carry any details such as, names of affected providers, tariff or claim deduction challenges etc.”
Care Health Insurance stated it has maintained its relationship with AHPI, and cited communication with Dr Khetarpal (DDG, AHPI), who, it said, could not provide specific details. Tertiary care providers also have not mentioned any challenges with their services, it said. The company said it was optimistic about resolving any issues, provided that customer interests are prioritised.
The AHPI highlighted that the ongoing medical inflation rate of 7-8 per cent in India, driven by rising costs of consumables and utilities, exacerbates the unsustainability of current reimbursement rates.
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