The Association of Healthcare Providers – India (AHPI), representing over 15,000 hospitals nationwide, has announced that its member hospitals in North India will suspend cashless treatment for policyholders of Bajaj Allianz General Insurance Company, effective September 1. This decision comes after hospitals faced repeated challenges with the insurer over reimbursement rates, delays in payments, and prolonged approval times for pre-authorisation and discharge processes.
According to AHPI Director General Girdhar Gyani, medical inflation has consistently been around 7-8% per year, making it unsustainable for hospitals to operate at outdated rates. Despite previous communications with Bajaj Allianz, the insurer has not responded, prompting AHPI to halt cashless services. AHPI has proposed that tariffs be reviewed every two years to keep up with medical inflation, but Bajaj Allianz has rejected these requests and sought further tariff reductions.
As a result, member hospitals will temporarily suspend cashless services for Bajaj Allianz policyholders, although they will continue to provide treatment at self-pay rates, allowing patients to seek reimbursement from their insurer later. AHPI has also issued a similar notice to Care Health Insurance, requesting a response by August 31, 2025, and warning that member hospitals may discontinue cashless treatment for Care Health Insurance beneficiaries if the issue is not resolved.
Despite the standoff, AHPI remains committed to collaboration with insurers and is open to constructive engagement to find a solution that serves the interests of both patients and healthcare providers. Bajaj Allianz General Insurance has expressed surprise at the announcement and stated that it is working with AHPI to find a solution that benefits policyholders. The company’s head of Health Administration Team, Bhaskar Nerurkar, emphasized that the company wants to ensure that policyholders receive the best possible hospitalization experience with fair rates, seamless claims, and quality service.
The dispute between AHPI and Bajaj Allianz highlights the ongoing challenges in India’s healthcare sector, where hospitals and insurers often have differing views on reimbursement rates and payment terms. The suspension of cashless services may cause inconvenience to policyholders, but AHPI hopes that the move will prompt Bajaj Allianz to reconsider its stance and engage in constructive dialogue to find a mutually beneficial solution. With the deadline of September 1 looming, it remains to be seen how the situation will unfold and whether a resolution can be reached that satisfies both parties.