Daijiworld Media Network - New Delhi
New Delhi, Aug 23: Starting September 1, hospitals affiliated with the Association of Healthcare Providers – India (AHPI) in North India will no longer offer cashless treatment to policyholders of Bajaj Allianz General Insurance Company. The move follows growing frustration among hospitals over outdated reimbursement rates that, according to AHPI, no longer reflect the steep rise in healthcare costs.
Dr. Girdhar Gyani, Director General of AHPI, said the decision was made after repeated efforts to engage with Bajaj Allianz yielded no response. Hospitals have complained of mounting challenges, including demands from the insurer to lower already outdated tariffs, unexplained payment deductions, delayed reimbursements, and long waiting times for pre-authorisation and discharge clearances.
“Medical inflation in India runs at 7–8% annually due to rising costs in staffing, medicines, consumables, and utilities,” said Dr. Gyani. “Continuing operations at rates fixed years ago, or worse, slashing them further, is simply unsustainable. It risks the quality of care that patients receive — something we cannot compromise on.”
AHPI insists that reimbursement rates should be reviewed and updated every two years in line with inflation. However, the association claims Bajaj Allianz has not only refused to consider this recommendation but has also pushed for rate reductions, creating what AHPI has termed an “untenable” situation.
Hospitals will continue to treat Bajaj Allianz policyholders, but only on a self-pay basis. Patients will need to pay upfront and claim reimbursements directly from the insurer.
In a related development, AHPI has also served notice to Care Health Insurance, demanding a response by August 31. If a resolution is not reached, cashless facilities for Care Health Insurance customers could also be withdrawn next month.
Despite the strong stance, AHPI reiterated its willingness to engage in constructive dialogue with insurers, stressing that the shared goal must be sustainable, quality, and affordable healthcare for patients.