Cashless treatment standoff: AHPI withdraws advisory against Bajaj Allianz General Insurance

AHPI withdraws cashless advisory

The Association of Healthcare Providers India (AHPI) has withdrawn advisory that has asked member hospitals in the north to suspend cashless services for Bajaj Allianz General Insurance Company customers from September 1.

“Our goal is to engage in constructive dialogue with the insurers to resolve issues in the larger interest of patients. We urge all the insurers to work in partnership with hospitals and restore cashless services at member hospitals, as the disruption is placing an unfair financial and emotional burden on patients,” Dr Girdhar Gyani, Director General of AHPI, said on August 30.

“They also need to engage with the member hospitals regularly to revise outdated rates, setting up transparent grievance mechanisms, and respecting clinical autonomy."

Bajaj Allianz has agreed to restore cashless services with member hospitals.

The decision comes after AHPI held talks with Bajaj Allianz on August 28, urging the insurer to immediately restore services at its member hospitals.

On August 22, AHPI directed its hospitals to suspend cashless facilities to customers of Bajaj Allianz General Insurance and Care Health Insurance from September 1.

According to AHPI, the decision to stop cashless services for Bajaj Allianz 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 August 22, seeking a response by August 31, 2025. "Failing this, our member hospitals will be constrained to discontinue cashless services to Care Health Insurance beneficiaries as well," AHPI said in the press release.

On August 26, insurers’ industry lobby the General Insurance Council hit back at the hospitals, terming the move arbitrary and against the interest of patient-policyholders.