From September 1, 15,000 Hospitals to End Cashless Treatment for This Insurance Company – Details Inside

The Association of Healthcare Providers – India (AHPI) has announced a significant decision that will affect thousands of patients in North India. Beginning September 1, hospitals affiliated with AHPI will stop offering cashless treatment facilities to policyholders of Bajaj Allianz General Insurance Company. This move, according to AHPI, comes after repeated complaints from member hospitals over the insurer’s failure to update reimbursement rates in line with rising medical costs.

Why Cashless Treatment is Being Stopped

AHPI, which represents over 15,200 hospitals across the country, stated that hospitals have raised concerns about outdated reimbursement tariffs that no longer match current medical expenses. Medical inflation in India has consistently ranged between 7–8 percent annually, driven by rising input costs, medicine prices, and consumables. However, Bajaj Allianz has allegedly not adjusted its reimbursement rates, and in some cases, has even pressured hospitals to lower tariffs that were agreed upon years ago.

Complaints from Hospitals

According to AHPI, hospitals have repeatedly voiced grievances about several practices by Bajaj Allianz. These include unilateral deductions from claims, frequent payment delays, and prolonged waiting times for pre-authorization and discharge approvals. Hospitals argue that such practices not only put financial strain on institutions but also lead to distress among patients who expect quick and hassle-free services under their insurance policies.

Bajaj Allianz Responds to AHPI’s Decision

In reaction to the announcement, Bajaj Allianz General Insurance Company expressed surprise, stating that it was not expecting such a step from AHPI. The insurer said it is actively working with the association to resolve the issues in a manner that safeguards the interests of policyholders. The company added that discussions are ongoing and it is committed to finding a fair solution.

AHPI’s Communication Efforts

AHPI officials, however, maintain that the association had previously written to Bajaj Allianz to highlight the concerns of hospitals but did not receive a formal response. Dr. Girdhar Gyani, Director General of AHPI, said the decision to stop cashless services was unavoidable given the economic realities. He emphasized that medical service providers are grappling with rising expenses and cannot continue offering services at outdated rates without financial stress.

Warning to Other Insurers

This is not the first time AHPI has raised concerns with insurers. On August 22, 2025, the association issued a similar warning to Care Health Insurance, cautioning that cashless services may be withdrawn if issues remain unresolved. AHPI clarified that unless insurers respond positively by addressing tariff and payment concerns, hospitals may be forced to suspend cashless services for other companies as well.

Care Health Insurance’s Reaction

Responding to AHPI’s warning, Care Health Insurance said it had received the association’s communication but claimed it lacked specific details. According to Manish Dodega, Chief Operating Officer of Care Health Insurance, the company has always maintained a strong partnership with AHPI and continues to engage with both the association and individual hospitals. He added that the company is confident that any issues can be resolved amicably and that many hospitals have not reported challenges with their services.

Impact on Policyholders

The suspension of cashless facilities could cause difficulties for Bajaj Allianz policyholders, especially those seeking urgent or planned hospitalization in North India. Patients may now have to pay expenses upfront and later seek reimbursement, a process that could create both financial and logistical stress. Industry experts believe that the decision underlines the need for insurers and healthcare providers to regularly update tariffs in line with rising costs to prevent such disputes.