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The Association of Healthcare Providers – India (AHPI), representing hospitals and healthcare institutions across the country, has advised its members in north India to stop providing cashless treatment facilities for policyholders of Bajaj Allianz General Insurance Company, with effect from September 1.
Illustration: Dominic Xavier/Rediff
Expressing surprise over AHPI’s decision, Bajaj Allianz General Insurance Company said it is working with the association to arrive at a solution that is in the best interests of customers.
The association with 15,200 hospitals across India as its members said its decision follows repeated complaints from hospitals that Bajaj Allianz has refused to revise hospital reimbursement rates in line with rising medical costs and has, in fact, pressured hospitals to further reduce tariffs that were agreed upon years ago under now-expired contracts.
In addition, member hospitals complained of unilateral deductions by the company, delay in payments and unduly high time taken for issuing pre-auth and pre-discharge approvals, AHPI said in a statement on Friday.
AHPI alleged that it had earlier written to Bajaj Allianz, however, the insurer did not respond to its communication.
“We are surprised by this announcement. At Bajaj Allianz, we have always believed that policyholders should receive the best possible hospitalisation experience with fair rates, seamless claims and quality service.
“Also, we proactively engage with all hospitals to settle any queries or dues from our side.
“We are confident of working amicably with AHPI and its member hospitals to arrive at a solution that is in the best interests of our customers,” Bajaj Allianz General Insurance head (Health Administration Team) Bhaskar Nerurkar said in a statement.
Explaining the rationale for this decision, AHPI director general Girdhar Gyani said, medical inflation consistently hovers around 7-8 per cent per annum, driven byan increase in input costs, higher prices of medicines, consumables, utilities, and other overheads.
“While we continuously strive to improve efficiency and control costs, continuing at outdated rates, let alone lowering them, is unsustainable and risks compromising patient care – something AHPI and its members will not accept,” he said.
Further, a similar notice has been served to Care Health Insurance on August 22, 2025, with a request for their response by August 31, 2025.
Failing this, member hospitals will be constrained to discontinue cashless services to Care Health Insurance beneficiaries as well, it said.
The company has also reached out to few tertiary care providers (members of AHPI) who haven’t mentioned any challenges with services, Care Health chief operating officer Manish Dodeja said in a statement.
“We are confident of amicably resolving any issues with the said forum, provided our customers’ interests remain the sole objective for any productive outcome,” he added.
AHPI and its members reiterate their commitment to partnering with insurers to ensure affordable, accessible, and high-quality healthcare for all.
We remain open to constructive engagement and look forward to a positive resolution in the best interests of patients and healthcare providers alike, it added.
