#AHPI #HealthInsurance #BajajAllianz #CareHealth #CashlessFacility #HealthcareIndia #MedicalInsurance #PatientCare #InsuranceSector #Policyholders
New Delhi: In a major relief for policyholders and patients, the Association of Healthcare Providers-India (AHPI) has revoked its advisory directing member hospitals to suspend cashless services for Bajaj Allianz General Insurance and Care Health Insurance customers. The decision follows a meeting held on August 28 between AHPI’s core committee and senior representatives of Bajaj Allianz, where both sides reached a broad agreement on contentious issues.
Background: Cashless Services Under Threat
On August 22, 2025, AHPI had issued a directive to hospitals in North India advising them to suspend cashless facilities for Bajaj Allianz and Care Health policyholders starting September 1. The advisory stemmed from long-standing grievances raised by hospitals against insurers, including:
-
Delays in empanelment of new hospitals.
-
Outdated reimbursement rates that do not match current treatment costs.
-
Unilateral deductions in claims without prior consultation.
-
Disputes over coverage of advanced treatments.
-
Insurers questioning clinical decisions of doctors.
The announcement triggered widespread concern across the insurance, healthcare, and policyholder ecosystem, raising fears of disruption to patients’ access to affordable and timely healthcare.
The General Insurance Council (GIC), the representative body of insurers, strongly criticized AHPI’s move, calling it “arbitrary, lacking clarity or actionable details.” GIC urged AHPI to withdraw the advisory and instead engage in constructive dialogue to resolve disputes amicably.
Breakthrough Meeting with Bajaj Allianz
Responding to the concerns, AHPI convened a meeting on August 28 with senior representatives of Bajaj Allianz General Insurance.
The discussion was described as “open, constructive, and solution-oriented,” with both sides acknowledging the importance of uninterrupted healthcare access for policyholders.
As a result of the meeting:
-
Bajaj Allianz committed to submit formal action plans addressing AHPI’s concerns by September 29, 2025.
-
Both sides agreed to restore cashless services immediately across AHPI member hospitals.
-
Insurers promised to take a collaborative approach in resolving issues around reimbursement, empanelment, and claims processing.
AHPI’s Perspective
Dr. Girdhar Gyani, Director General of AHPI, emphasized that the advisory was never intended to hurt patients but to bring attention to systemic challenges faced by hospitals.
“Our goal is to engage in constructive dialogue with insurers to resolve issues in the larger interest of patients. The disruption of cashless services places an unfair financial and emotional burden on patients. We thank Bajaj Allianz for working with us to resolve these matters promptly,” he said.
Gyani further highlighted that healthcare providers seek transparent processes, timely payments, and respect for clinical autonomy, all of which are essential for smooth insurer–hospital partnerships.
Bajaj Allianz’s Assurance
Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance and Chairman of GIC, welcomed the resolution, stressing the insurer’s commitment to policyholders.
“We are pleased that the matter has been resolved in the interest of policyholders and citizens, who must never face interruptions in their access to cashless healthcare. Cashless access is the backbone of health insurance and should never be compromised. Episodes of this nature reinforce the urgent need for a strong health regulator to safeguard citizens’ interests and ensure transparency and fairness across the healthcare ecosystem. Every stakeholder—including hospitals, insurers, and policymakers—must work together to maintain uninterrupted services and build enduring trust,” Singhel stated.
Larger Implications for Healthcare & Insurance Ecosystem
This episode underscores the fragility of insurer–hospital relations in India’s healthcare ecosystem. While cashless health insurance has been a major step in making healthcare affordable and accessible, friction between hospitals and insurers often threatens its stability.
Key takeaways from this development include:
-
Need for a Health Regulator – Industry leaders have repeatedly called for an independent regulator to oversee health insurance and hospital networks, ensuring fairness for both patients and providers.
-
Collaboration over Confrontation – The AHPI–Bajaj Allianz resolution demonstrates that dialogue and transparency can help avoid disruptions.
-
Patient-Centric Focus – Ultimately, patients bear the brunt of disputes. Policymakers, insurers, and hospitals must ensure that policyholders are insulated from service disruptions.
-
Revisiting Tariffs & Processes – With rising healthcare costs and technological advancements, outdated reimbursement rates and procedural bottlenecks must be addressed to keep the system sustainable.
What’s Next?
The focus now shifts to the implementation of Bajaj Allianz’s action plan, expected by September 29. Hospitals will closely watch how insurers address key issues such as reimbursement updates, faster empanelments, and dispute resolution mechanisms.
Meanwhile, Care Health Insurance, which was also included in AHPI’s original advisory, is expected to engage in similar discussions with the association to ensure uninterrupted cashless services.
The outcome of these talks could set a precedent for future insurer–provider negotiations and potentially pave the way for policy reforms in India’s health insurance sector.
Conclusion
The withdrawal of AHPI’s advisory marks a positive resolution to a potentially disruptive standoff. By prioritizing dialogue over confrontation, both hospitals and insurers have reaffirmed their commitment to patient welfare.
However, experts caution that unless structural reforms are introduced, such disputes may resurface in the future. A regulatory framework, combined with transparent negotiations and fair practices, will be key to sustaining the growth of India’s health insurance sector and maintaining public trust.
Hashtags
#AHPI #HealthInsurance #BajajAllianz #CareHealth #CashlessFacility #HealthcareIndia #MedicalInsurance #PatientCare #InsuranceSector #Policyholders
