The Association of Healthcare Providers India (AHPI) has advised over 15,000 member hospitals, including top chains like Max Healthcare and Medanta, to suspend cashless treatment facilities for Bajaj Allianz policyholders starting September 1, 2025. Patients can still get treated, but they must pay upfront and claim reimbursements later, shifting the financial burden onto families.
Why Hospitals Took This Step
Hospitals argue that medical inflation of 7–8% annually, outdated tariffs, delayed claim settlements, and unilateral deductions have made cashless treatments unsustainable. Continuing care under outdated, underpriced contracts, they say, risks financial viability and compromises patient safety. AHPI has long demanded a tariff review every two years, but claims Bajaj Allianz instead pushed for further cuts.
Impact on Policyholders
For policyholders, this suspension could be deeply disruptive. Without cashless facilities, patients may struggle with upfront costs, especially in emergencies requiring costly surgeries, ICU care, or long hospital stays. This change not only creates financial stress but also risks treatment delays, undermining one of the core benefits of health insurance.
Insurers Push Back
Bajaj Allianz expressed “surprise” at the announcement, stating it remains committed to fair practices, smooth claim settlements, and quality healthcare access. The insurer emphasized that it is actively engaging with hospitals to resolve disputes and minimize inconvenience to its customers.
What’s Next?
This standoff reflects a larger friction between hospitals and insurers, as medical costs surge but reimbursement rates fail to keep pace. AHPI has also issued a notice to Care Health Insurance, raising fears of similar disruptions for more patients. For now, policyholders remain caught in the middle, uncertain about whether their insurance will truly protect them when needed most.
