From September 1, hospitals affiliated with the Association of Healthcare Providers—India (AHPI)—in northern India will no longer offer cashless treatment to Bajaj Allianz General Insurance policyholders. The network includes major names like Max Healthcare and Medanta. AHPI says the insurer has neglected repeated pleas to align reimbursement rates with medical inflation, putting patient care at risk.
Hospitals Sound the Alarm Over Costs and Delays
AHPI reports that continued unilateral deductions, payment delays, and sluggish pre-authorisation processes have had a significant operational impact. Meanwhile, the reimbursement rates have not been updated in line with India’s annual medical inflation—estimated at seven to eight percent. AHPI warns that continuing to operate under old terms—or worse, reduced rates—is unsustainable and detrimental to patient care.
BHPO (Hospitals) will continue to offer treatment, but only at self-pay rates; patients would need to seek reimbursement later. Similar notices have been dispatched to Care Health Insurance, giving them until August 31 to respond before services to their policyholders face a similar fate.
Insurer Offers to Talk; Hospitals Hold Their Ground
Bajaj Allianz expressed surprise at the move, stating that the company “believes policyholders should receive the best possible hospitalisation experience with fair rates, seamless claims and quality service.” The insurer said it is ready to engage with AHPI in good faith for solutions.
But as medical costs climb, AHPI remains firm that periodic tariff reviews—ideally every two years—are essential. Until then, the cashless services freeze stands, leaving patients in a bind.