Following discussions with Bajaj Allianz General Insurance, Association of Healthcare Providers India (AHPI), has urged the insurer to immediately restore cashless services at its member hospitals, that were earlier removed from the cashless list of the insurer. AHPI has indicated that it will review the advisory to stop cashless services from 1st September, which was given to its members, once the insurer resumes cashless services at various hospitals in the next couple of days.
In the past Bajaj Allianz stopped cashless services for many of its member hospitals, which it has now asked the insurer to resume. "Following the meeting today, Bajaj Allianz General has restored cashless services at Medanta Lucknow and Manipal Hospital , Delhi . This is a positive step and a move towards resolving the issue, " says Dr. Sunil K. Khetarpal, the Deputy Director General of AHPI
Earlier, AHPI had advised its member hospitals in North India to withdraw cashless treatment facilities for policyholders of Bajaj Allianz General Insurance starting September 1, 2025.
Girdhar Gyani, Director General of AHPI, said: “Our goal is to engage in constructive dialogue with the insurers to resolve these issues in the larger interest of patients. We urge all the insurers to work in partnership with hospitals and immediately restore cashless services at member hospitals. They also need to engage with the member hospitals regularly to revise outdated rates, setting up transparent grievance mechanisms, and respecting clinical autonomy."
"The issues we have raised are not about commercial disputes alone, but about the sustainability of hospitals and the rights of patients. Patients are the biggest sufferers when insurers refuse to revise tariffs, deny claims, and interfere in medical decisions. These practices are coercive, unfair, and go against the principles of accessible healthcare," he added.
According to AHPI, the decision followed repeated complaints by member hospitals that the insurer refused to revise reimbursement rates in line with rising medical costs, and instead pressured healthcare providers to cut tariffs agreed upon years ago under now-expired contracts. Hospitals have also alleged unilateral deductions, delays in payments and excessive time taken for pre-authorization and pre-discharge approvals, which they claim have further strained operations.
A similar notice was served to Care Health Insurance on 22nd August 2025, with a request for their response by 31st August 2025. "Failing this, our member hospitals will be constrained to discontinue cashless services to Care Health Insurance beneficiaries as well," stated AHPI in the press release.
General Insurance Council (GIC) on August 26 said the decision of AHPI to suspend cashless facility for Bajaj Allianz policyholders in North India from September as "arbitrary, lacking clarity".
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