The Association of Healthcare Providers of India (AHPI) has raised alarm over Star Health Insurance’s withdrawal of cashless health services at several leading hospitals. AHPI said the move is restricting patient access to treatment and undermines the core purpose of health insurance. Major institutions impacted include Care Hospitals in Vizag, Manipal Hospitals in Delhi and Gurugram, Max Hospitals across North India, Metro Hospital in Faridabad, Medanta in Lucknow, Rajiv Gandhi Cancer Hospital in New Delhi, Sarvodaya Hospital in Faridabad, and Yatharth Hospitals.
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Delays in Empanelment of New Facilities
In addition to existing disruptions, AHPI flagged significant delays or outright refusals in the empanelment of new hospitals. These include Care Health City Vizag, Care Hospital Malakpet Hyderabad, Fortis Hospital Manesar, Jupiter Hospital Indore, Max Hospital Dwarka, and Medanta Hospital Noida. The association noted that such actions force families to shift from cashless benefits to reimbursement claims, which are both time-consuming and financially burdensome.
Patients’ Rights Must Be Protected
“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,” said Girdhar Gyani, Director General of AHPI, and Abul Hasan, Chairman of the Indian Medical Association Hospital Board, in a joint statement released on September 14.
Call for Immediate Action
AHPI has demanded that Star Health immediately restore cashless services and expedite the empanelment of new hospitals to ensure uninterrupted healthcare access. It dismissed the General Insurance Council’s (GIC) claim that its move was unilateral, clarifying that the decision was a direct response to Star Health’s actions.
While AHPI remains open to discussions with stakeholders, it emphasized that patient welfare must take precedence. Unless cashless services are restored quickly, the association warned, patients will continue to face hurdles in receiving timely care, weakening public trust in the health insurance system.