The Association of Healthcare Providers of India (AHPI) has called on Star Health Insurance to immediately restore cashless services at several major hospitals, alleging that the insurer unilaterally suspended the facility and left patients stranded in the middle of treatment.
In a statement on September 15, AHPI said patients in hospitals such as Manipal (Delhi and Gurugram), Max (across North India), Medanta (Lucknow), Rajiv Gandhi Cancer Institute (Delhi), Metro (Faridabad), Care (Vizag), and Sarvodaya (Faridabad) have been denied the basic benefit of cashless hospitalisation.
“This dual policy of suspension and refusal to empanel is creating unnecessary hardship for patients and undermining the credibility of health insurance,” the association said.
AHPI also accused Star Health of refusing or delaying empanelment requests from several prominent hospitals, including Fortis Manesar, Jupiter Indore, Medanta Noida, Max Dwarka, and Care Malakpet in Hyderabad, thereby limiting patient choice and forcing families into reimbursement claims.
The development comes even as AHPI itself has warned Star Health that its member hospitals may suspend cashless services across the insurer’s network from September 22 if longstanding grievances, such as claim rejections, arbitrary deductions, and non-revision of tariffs, are not addressed.
The General Insurance Council (GIC) had also earlier, on September 13, urged AHPI to withdraw that threat, calling it unilateral and harmful to policyholders.
Defending its stance, AHPI maintained that its position is a “necessary response” to Star Health’s own actions. “Patients buy health insurance with the clear expectation of receiving cashless treatment at quality hospitals. It is unjust for insurers to withhold this facility after collecting premiums, leaving families to scramble for funds at the time of hospitalization,” said Girdhar Gyani, Director General of AHPI, and Dr. Abul Hasan, Chairman of the IMA Hospital Board, in a joint statement issued after a meeting on September 14.
AHPI said it remains open to dialogue with all stakeholders but stressed that patient welfare must remain the top priority.
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