From April 1, 2025, hospitals and nursing homes in Ahmedabad will no longer offer cashless services to patients with Star Health and Tata AIG General Insurance policies. This decision was made due to growing tensions between healthcare providers and insurance companies, resulting from unjustified deductions, low reimbursement rates, non-renewal of tariff rates, and insurance companies’ tendency to blacklisting hospitals. Hospitals have reported difficulties in continuing cashless services due to delayed and reduced payments from insurance companies.
The Ahmedabad Hospital and Nursing Association (AHNA) has expressed concerns about non-transparent pricing policies and the financial strain it puts on healthcare providers due to arbitrary tariff structures. As a result, starting April 1, patients with Star Health and Tata AIG policies will need to pay medical expenses upfront and then claim reimbursements, which could be a significant challenge for policyholders who rely on cashless services for convenient treatment.
This move may disproportionately affect policyholders in Ahmedabad, where medicial treatment is already a significant expense. The suspension of cashless services may lead to added financial stress for patients, especially those who rely on health insurance to cover healthcare costs. However, insurance companies’ policies towards healthcare providers seem to be a major factor in this decision, highlighting the need for a more collaborative approach between the two to ensure seamless access to medical care for patients.