New Delhi: A major row has erupted between leading hospital associations and Star Health Insurance after the insurer suspended cashless services in several hospitals across the country, leaving patients and families facing unexpected financial burdens.
The Association of Healthcare Providers of India (AHPI) and the Indian Medical Association (IMA) Hospital Board said the abrupt suspension has triggered panic and distress among patients who bought insurance expecting cashless treatment. “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, leaving families to scramble for funds at the time of hospitalization,” said Dr. Girdhar Gyani, Director General of AHPI, and Dr. Abul Hasan, Chairman of the IMA Hospital Board, in a joint statement issued after a meeting on 14 September.
According to AHPI, cashless services have been suspended at several hospitals, including Care Hospitals (Ramnagar, Vizag), Manipal Hospital (Delhi and Gurugram), Max Hospitals (North India), Metro Hospital (Faridabad), Medanta Hospital (Lucknow), Rajiv Gandhi Cancer Hospital (New Delhi), Sarvodaya Hospital (Faridabad) and Yatharth Hospitals.
The associations further alleged that Star Health has slowed or outright stopped empanelment of new hospitals, thereby limiting patient access to cashless care. Hospitals reportedly denied empanelment include Care Health City (Vizag), Care Hospital (Malakpet, Hyderabad), Fortis Hospital (Manesar), Jupiter Hospital (Indore), Max Hospital (Dwarka) and Medanta Hospital (Noida). AHPI warned that such actions are “restricting patient choice and forcing many families into the reimbursement route, which defeats the very purpose of health insurance.”
The associations strongly demanded that Star Health restore cashless facilities without delay and expedite the empanelment of pending hospitals. “Patients deserve seamless access, and hospitals deserve fair treatment as service providers. Star Health must act urgently to restore trust and ensure that its insured members are not penalised for choosing the hospitals best suited to their medical needs,” Dr. Gyani and Dr. Hasan said.
While the General Insurance Council (GIC) had earlier defended insurers, AHPI clarified that its decision to intervene was “neither arbitrary nor unilateral, but a necessary response” to Star Health’s actions.