The Association of Healthcare Providers of India (AHPI) has announced that over 15,000 hospitals across India will suspend cashless treatment for patients insured with Bajaj Allianz General Insurance starting September 1, 2025. This decision is expected to affect a large number of families who rely on health insurance for smooth and stress-free medical care. The hospitals have claimed that insurance companies are delaying payments and not settling claims on time, making it difficult for them to continue offering cashless services.
According to AHPI, medical inflation in India is around 7-8% every year, driven by rising staff costs, medicines, consumables, utilities, and overheads. However, insurance reimbursements are not keeping pace, making it challenging for hospitals to operate at outdated reimbursement rates. The director general of AHPI, Dr Girdhar Gyani, stated that continuing under such terms risks compromising patient care, which AHPI and its members cannot allow.
For patients, the biggest change is financial. They will now need to pay upfront and later apply for reimbursement, which can be a significant stress, especially in emergencies. The reassurance of cashless care, especially in critical situations, will now be missing. This move is expected to affect patients who rely on health insurance for smooth and stress-free medical care.
The announcement highlights the tension between hospitals and insurers, with patients becoming the most vulnerable in this tug-of-war. Hospitals demand fair reimbursement, while insurers aim to control costs. However, unless a resolution is reached, many patients will have to prepare for a reimbursement-only model. Such disputes need urgent attention because disruptions in insurance services directly affect patient well-being and access to timely healthcare.
The suspension of cashless treatment is a significant development that can have far-reaching consequences for patients and the healthcare industry. It remains to be seen how the situation will unfold, but one thing is certain – patients will be the ones who will bear the brunt of this decision. The AHPI has confirmed the suspension from September 1, but there is still room for negotiation. It is essential for hospitals, insurers, and regulatory bodies to come together to find a solution that works for all parties involved, ensuring that patients continue to receive the care they need without financial stress.