Cashless Treatment to Stop for Two Health Insurers from September 1, Lakhs of Patients Likely to Be Affected
Cashless Treatment Halted for Bajaj Allianz, Care Health Policyholders from September 1: Lakhs to be Hit
Starting September 1, 2025, lakhs of health insurance customers across North India could face a major disruption as hospitals under the Association of Healthcare Providers India (AHPI) will stop offering cashless treatment for policyholders of Bajaj Allianz General Insurance and Care Health Insurance.
The decision comes after months of deadlock over treatment reimbursement rates, forcing patients to pay bills upfront and later seek reimbursement — a move that raises concerns about the affordability and accessibility of healthcare.
Why Are Hospitals Pulling Out?
AHPI says rising medical inflation, pegged at 7–8% annually, has made it unsustainable to continue treatments at outdated tariffs. Hospitals cite rising costs of staff salaries, medicines, consumables, utilities, and operational overheads.
“Running operations at old tariffs compromises patient care — something our hospitals cannot accept,” said Dr. Girdhar Gyani, Director General, AHPI.
Insurers Push Back
The General Insurance Council has slammed AHPI’s move as abrupt and one-sided, warning it could undermine public trust in health insurance at a time when IRDAI is pushing for 100% cashless treatment nationwide.
“Such disruptions create fear and confusion among policyholders and risk patients’ lives in emergencies,” the Council said.
Bajaj Allianz Under Fire
AHPI has directed its member hospitals to stop cashless services for Bajaj Allianz customers citing issues like outdated tariffs, unauthorized deductions, delayed payments, and prolonged approvals.
Bajaj Allianz has responded, saying it is seeking an immediate resolution:
“We are committed to constructive discussions with AHPI to ensure uninterrupted healthcare for our customers,” said Bhaskar Nerurkar, Head of Health Administration, Bajaj Allianz.
Care Health Insurance Next in Line?
On August 22, AHPI issued a notice to Care Health Insurance, warning that services will also be suspended if concerns aren’t addressed by August 31.
Manish Dodeja, COO of Care Health Insurance, expressed surprise:
“The communication was vague and lacked specifics. We’ve always had a steady relationship with AHPI and are confident of resolving this matter amicably.”
What It Means for Patients
Until an agreement is reached, patients under both insurers will have to pay medical bills directly and later file for reimbursement. This tussle exposes deepening cracks in India’s healthcare financing system, even as regulators push for seamless cashless treatment.
