The Association of Healthcare Providers – India (AHPI) has issued a warning to Star Health Insurance, threatening to suspend cashless facilities to policyholders due to the insurer’s questionable practices. The association, which represents over 15,000 hospitals and healthcare institutions, has raised several concerns, including the insurer’s refusal to revise tariffs despite high healthcare cost inflation, arbitrary withdrawal of cashless services, and unjustified deductions from hospital bills.
AHPI has pointed out that these practices may compromise patient safety and quality of care, and has warned that unless Star Health Insurance addresses these concerns in a timely manner, cashless services for policyholders may be withdrawn from September 22, 2025. The association has also cited the Insurance Ombudsman Annual Report 2023-24, which shows that Star Health Insurance had the highest number of complaints, with over 13,300 complaints in FY24, mostly related to partial or full claim rejections.
AHPI has expressed similar concerns about other insurers, including Bajaj Allianz General Insurance and Care Health Insurance. The association is also opposed to the proposed GIC-led common empanelment process, which it views as anti-competitive and lacking a sound legal basis. The process involves insurers abruptly stopping cashless services to pressure hospitals into lowering tariffs, which AHPI believes is unfair and may harm patients.
The issues raised by AHPI are significant, and the association’s warning to Star Health Insurance is a clear indication of the tensions between healthcare providers and insurers in India. The association’s concerns about patient safety and quality of care are also valid, and it remains to be seen how Star Health Insurance will respond to the warning. If the insurer fails to address the concerns, it may lead to a disruption in cashless services for policyholders, which could have serious consequences for patients and their families.
Overall, the dispute between AHPI and Star Health Insurance highlights the need for greater transparency and fairness in the insurance industry, particularly when it comes to healthcare costs and patient care. The association’s efforts to protect the interests of healthcare providers and patients are crucial, and it is essential that insurers respond to these concerns in a constructive and timely manner.