Starting September 1, 2025, the Association of Healthcare Providers India (AHPI) has directed member hospitals around 15,000 of them, including prominent names such as Max Healthcare and Medanta, to withdraw cashless treatment services for Bajaj Allianz General Insurance policyholders. The AHPI initiated the move, citing low reimbursement rates, unilateral deductions, and delays in approvals and payments.
Association of Healthcare Providers (India) represents the majority of healthcare providers in India.
It works as “not for profit” organization and advocates with the government, regulatory bodies and other stake holders on issues, which have bearing on enabling its members organizations to deliver appropriate healthcare services to community at large.
Why hospitals are suspending cashless treatment
Hospitals accuse Bajaj Allianz of failing to adjust reimbursement rates in line with medical inflation (currently averaging 7–8% annually) since last 2 years and even pushing for deeper rate cuts under expired contracts. They also report arbitrary payment deductions, slow claim settlements, and prolonged pre-authorisation and pre-discharge approvals.
AHPI's stance and expectations
AHPI, representing more than 20,000 member and affiliate hospitals, issued a notice in North India recommending a temporary suspension of cashless services until “fair and sustainable tariff agreements” are reached. Hospitals will still treat Bajaj Allianz policyholders under self-pay terms, allowing patients to later seek reimbursement from the insurer. A similar notice went to Care Health Insurance, with hospitals requesting a response by August 31, or they will also suspend its cashless services.
The Association of Healthcare Providers India (AHPI) is set to meet Bajaj Allianz General Insurance Company executives on Thursday, August 28, 2025, to discuss the suspension of cashless treatment services.
Bajaj Allianz Response
Bhaskar Nerurkar, Head of Health Administration at Bajaj Allianz General Insurance, said the company expressed surprise at the AHPI announcement. He added that Bajaj Allianz expects to work amicably with AHPI to find a solution benefitting customers.
There had been previous reimbursement issues and cashless treatment facility for Tata AIG, Star Health and CARE Health were cancelled in April in Ahmedabad by the Ahmedabad Hospital and Nursing Home Association (AHNA). But in May, it was reinstated CARE and Star Health and not for TATA AIG.
CARE Health had also ceased to provide a cashless treatment facility at Max Hospitals across Delhi-NCR effective February 17, 2025.
(Rh/Eth/TL/MSM)