AHPI Revokes Cashless Suspension for Bajaj Allianz and Care Health Policyholders

The Association of Healthcare Providers of India (AHPI) has officially withdrawn its advisory to suspend cashless treatment services for policyholders of Bajaj Allianz General Insurance and Care Health Insurance, as per news reports. The move comes after successful discussions with insurance stakeholders and leading hospital chains, ensuring continued access to hassle-free treatment for thousands of policyholders.

Cashless Services Restored Following Hospital-Insurer Dialogue

As per the news report, AHPI reversed its earlier decision following a key meeting involving senior executives from Bajaj Allianz General Insurance and representatives from top hospital groups. The meeting addressed critical concerns over outdated rates, delayed claim settlements, and pre-authorisation delays. The consensus ensured continuity of vital cashless treatment services across North India’s AHPI-affiliated hospitals.

Original Advisory Stemmed from Financial Pressures on Hospitals

On August 22, 2025, AHPI advised member hospitals in North India to suspend cashless services starting September 1 due to unresolved issues, including unrealistic tariffs, long claim processing timelines, unilateral deductions, and inflation-induced costs. Hospitals expressed that further reduction in treatment rates would severely impact service quality and sustainability.

General Insurance Council’s Reaction and Industry Concerns

The General Insurance Council (GIC) publicly criticised the advisory, labelling it arbitrary and lacking actionable clarity. It warned of potential disruption to health services and highlighted how families facing sudden medical crises could be exposed to out-of-pocket expenses, eroding trust in health insurance systems. The GIC urged collaborative engagement rather than abrupt actions.

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AHPI & Insurer Commit to Constructive Dialogue

AHPI reiterated its intention to protect patient interests while calling out unfair practices in claim processing and tariff consistency. Director General Girdhar Gyani stressed that hospitals should not be pressured to operate under outdated payment terms, especially given rising input costs. Bajaj Allianz, in a parallel statement, expressed readiness for ongoing cooperation to ensure ethical and efficient healthcare delivery.

Conclusion

The resolution between AHPI and insurers marks a critical step towards reinforcing the cashless health ecosystem in India. By revoking the suspension, both parties have shown willingness to negotiate in good faith, ultimately safeguarding policyholders’ access to timely healthcare.

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