Daijiworld Media Network - New Delhi

New Delhi, Sep 12: The Association of Healthcare Providers – India (AHPI) has issued a stern warning to Star Health Insurance, threatening to suspend cashless services for its policyholders starting September 22, 2025, if persistent issues are not resolved immediately.

In a formal notice released on Friday, AHPI — which represents over 15,000 hospitals across India — accused Star Health of “unfair trade practices” that have led to growing tensions between the insurer and healthcare providers.

Key Allegations Against Star Health:

• Tariff Stagnation: Refusal to revise outdated tariffs despite inflation in healthcare costs.
• Pressure Tactics: Coercion to reduce rates even further.
• Cashless Denials: Arbitrary withdrawal of cashless service facilities.
• Claim Issues: Unjustified bill deductions and claim rejections even after final approval.

“These practices have caused serious hardship to patients and jeopardised quality care,” said AHPI in its statement, warning that such actions compromise patient safety and undermine hospital operations.

Star Health Tops Complaints List

According to the Insurance Ombudsman’s Annual Report (2023–24), Star Health recorded 13,300+ complaints, with over 10,000 involving claim rejections — more than the combined total of the next four largest health insurers.

AHPI Speaks Out

“The systemic failure of Star Health Insurance to address legitimate grievances, combined with their unfair practices, leaves us with no choice but to act,”
— Dr. Girdhar Gyani, Director General, AHPI

What This Means for Patients

• From Sep 22, Star Health policyholders may no longer get cashless treatment at AHPI-affiliated hospitals.
• Patients would need to pay upfront and seek reimbursement from the insurer after discharge.
• AHPI urged hospitals to facilitate alternate payment options to ensure no disruption in care.

Path to Resolution Still Open

While tensions are high, AHPI said it remains open to dialogue with Star Health to find a constructive resolution.

“Our priority is patient care. We want a solution that respects both the rights of patients and the sustainability of healthcare providers,” Dr. Gyani said.

If no agreement is reached soon, thousands of patients across India could face major disruptions in accessing cashless healthcare through Star Health — just weeks before the festival season.