AHPI and Star Health to Restore Cashless Health Insurance Services from October 10, 2025
New Delhi, September 22, 2025 - The Association of Healthcare Providers of India (AHPI) and Star Health and Allied Insurance Company have agreed to reinstate cashless health insurance services at AHPI-member hospitals nationwide starting October 10, 2025, resolving a heated dispute over tariffs, empanelment, and claim practices. “We are pleased that our dialogue with Star Health Insurance has resulted in this positive outcome,” said Dr. Girdhar Gyani, AHPI’s Director General, emphasizing that the restoration “will ease the burden on patients and their families, who deserve uninterrupted access to care,” per Moneycontrol.
The Agreement and Timeline
AHPI, representing over 15,000 hospitals, revoked its September 22 advisory to suspend cashless services for Star Health policyholders, averting widespread disruption. Both parties committed to resuming services on October 10 and resolving tariff revisions, empanelment issues, and claim adjudication disputes by October 31, 2025. Anand Roy, Star Health’s MD & CEO, stated, “Restoring cashless services reflects our commitment to ensuring accessible, affordable, and seamless healthcare for our customers.”
Why the Dispute Arose
The conflict arose from hospitals’ demands for tariff revisions to address rising costs in radiology and oncology, alongside other advanced technologies. “Some insurers have not revised rates since 2017, while technology and super-specialist salaries have surged,” Gyani noted. Insurers, including Star Health, delisted hospitals, citing unsustainable tariffs and alleged fraud in some claims. A Max Healthcare spokesperson countered, “We strongly reject allegations of overcharging, as insurers pre-approve every hospital bill.”
Scope and Significance
The resolution affects AHPI’s vast network, including major hospitals such as Max, Manipal, and Medanta, which were among those impacted during the suspension dispute. It also covers Star Health’s 11,300+ hospital network, which reported a ₹17,553 crore gross written premium in FY25. Had the standoff persisted, patients faced potential out-of-pocket expenses, disrupting care across India.
Ensuring Future Stability
AHPI will form an industry leader group to negotiate sector-wide agreements with insurers, supported by initiatives like the National Health Claims Exchange (NHCX) to standardize claims. Mahavir Chopra, Founder of Beshak.org, highlighted, “These negotiations will benefit customers in the long run by reducing claim deductions and stabilizing premiums.” Talks through October 31 aim to strengthen hospital-insurer collaboration.
Related Trend: Cashless Withdrawal by Insurers Elsewhere
According to an article we previously covered in Medbound Times published on September 4, 2025, Niva Bupa has ended cashless treatment for all its policyholders at Max Hospitals as of August 16, 2025, following failed negotiations over updated tariff rates. Policyholders now must pay upfront and seek reimbursement.
Impact on Patients and Policyholders
The restoration ensures patients can access direct insurer billing, relieving financial stress. Policyholders should verify cashless status before admission, retain bills for reimbursements, and promptly escalate issues to insurer or AHPI helplines if services are denied.
(Rh/Eth/VK/MSM)
