The Association of Healthcare Providers India (AHPI) has announced that its member hospitals will be pulling out of cashless services for certain insurance providers due to rising medical inflation and unsustainable treatment tariffs. The AHPI cites an annual medical inflation rate of 7-8%, which has led to increased costs for staff salaries, medicines, consumables, utilities, and operational overheads. According to Dr. Girdhar Gyani, Director General of AHPI, continuing to operate at outdated tariffs would compromise patient care, which is unacceptable.
The General Insurance Council has criticized the AHPI’s move, stating that it is abrupt and one-sided, and could undermine public trust in health insurance. The Council argues that such disruptions create fear and confusion among policyholders and put patients’ lives at risk in emergency situations. The IRDAI is currently pushing for 100% cashless treatment nationwide, making this development particularly concerning.
Bajaj Allianz has been specifically targeted by the AHPI, with the association directing its member hospitals to stop cashless services for Bajaj Allianz customers due to issues such as outdated tariffs, unauthorized deductions, delayed payments, and prolonged approvals. Bajaj Allianz has responded by seeking an immediate resolution and committing to constructive discussions with the AHPI to ensure uninterrupted healthcare for its customers.
Care Health Insurance has also been warned by the AHPI, with a notice issued on August 22 stating that services will be suspended if concerns are not addressed by August 31. The COO of Care Health Insurance, Manish Dodeja, has expressed surprise at the notice, stating that the communication was vague and lacked specifics. Despite this, he is confident that the matter can be resolved amicably.
The implications of this development are significant for patients, who will now have to pay medical bills directly and later file for reimbursement until an agreement is reached. This tussle exposes deepening cracks in India’s healthcare financing system, highlighting the need for urgent reform to ensure seamless cashless treatment for patients. The situation is complex, with multiple stakeholders involved, and a resolution will require constructive dialogue and cooperation between the AHPI, insurance providers, and regulators.