The Association of Healthcare Providers of India (AHPI) has announced that it may withdraw cashless services for Star Health Insurance policyholders from September 22. This decision comes after persistent complaints against the company, with over 13,000 complaints received, including more than 10,000 related to claim rejections. AHPI alleges that Star Health has refused to revise old tariff rates in line with rising costs, instead pressuring hospitals to reduce charges.
As a result, thousands of patients may face difficulties in accessing medical care. If cashless services are withdrawn, policyholders will have to pay hospitals upfront and later file a claim for reimbursement. This could put significant financial pressure on patients, particularly in emergency situations where immediate payment is required. AHPI represents over 15,000 hospitals and has stated that this step is being taken to protect patient safety and the financial condition of hospitals.
AHPI has emphasized that hospitals will continue to provide treatment to patients on a payment basis, and will assist patients in the reimbursement process. However, this change could still have a significant impact on patients who rely on cashless services. The Insurance Ombudsman’s 2023-24 report highlights the large number of complaints against Star Health, with many related to claim rejections.
The potential withdrawal of cashless services is a significant concern for Star Health Insurance customers, who may need to make alternative arrangements for medical care. AHPI has stated that it is taking this step out of compulsion, and that it hopes Star Health will address the concerns of hospitals and revise its policies to ensure that patients receive the care they need. If a resolution is not reached, patients may face significant difficulties in accessing medical care, particularly in emergency situations.