AHPI asks hospitals to stop cashless treatment for Bajaj Allianz customers

New Delhi: The Association of Healthcare Providers - India (AHPI), representing over 15,000 hospitals nationwide, has instructed its member hospitals in North India to suspend cashless treatment for policyholders of Bajaj Allianz General Insurance Company, effective September 1.

The move comes after hospitals reportedly faced repeated challenges with the insurer over reimbursement rates, delays in payments, and prolonged approval times for pre-authorisation and discharge processes. AHPI stated that many of the existing agreements were based on now-expired contracts and that hospitals were being pressured to accept lower tariffs despite rising medical costs.

“Medical inflation consistently hovers around 7-8 per cent per year due to increases in medicines, consumables, utilities, and other overheads,” AHPI Director General Girdhar Gyani said. “While hospitals strive to improve efficiency, operating at outdated rates—or lowering them—is unsustainable and threatens patient care, which we will not compromise.”

AHPI said it had previously communicated these concerns to Bajaj Allianz, but did not receive a response, prompting the decision to halt cashless services.

AHPI has consistently proposed that tariffs be reviewed every two years in line with medical inflation. This ensures hospitals can sustain operations without compromising standards of treatment. Unfortunately, Bajaj Allianz General Insurance Company has not only rejected reasonable requests for rate revisions but has also sought further tariff reductions, creating an unsustainable situation for healthcare providers.

“Given this untenable position, AHPI after its meeting with member hospitals is constrained to advise the providers to temporarily suspend cashless services for customers of Bajaj Allianz Insurance Company until fair and sustainable tariff agreements are reached,” the association said.

“Member hospitals shall, however, continue to provide treatment to patients with policies from Bajaj Allianz Insurance Company at self-pay rates, who shall seek reimbursement from their insurer on post basis.”

“In view of the above, a majority of AHPI member hospitals across the country have now resolved to suspend cashless services for beneficiaries of Bajaj Allianz Insurance Company effective 1st September 2025,” AHPI added.

AHPI also issued a similar notice to Care Health Insurance on August 22, 2025, requesting a response by August 31, 2025. If unresolved, member hospitals may be forced to discontinue cashless treatment for Care Health Insurance beneficiaries as well.

Despite the standoff, AHPI reaffirmed its commitment to collaboration with insurers. “We remain dedicated to partnering with insurance companies to ensure affordable, accessible, and high-quality healthcare for all,” the association said. “We remain open to constructive engagement and hope for a positive resolution that serves the interests of both patients and healthcare providers.”

Reacting to the announcement, Bajaj Allianz General Insurance expressed surprise and said it is working with AHPI to find a solution that benefits policyholders. Bhaskar Nerurkar, head of the company’s Health Administration Team, said, “We have always believed that policyholders should receive the best possible hospitalisation experience with fair rates, seamless claims, and quality service. We are confident of working amicably with AHPI and its member hospitals to arrive at a solution in the best interests of our customers.”with agency inputs