15,000 Hospitals to Suspend Cashless Services for Bajaj Allianz Policyholders from September 1
New Delhi/Mumbai, August 23, 2025 — In a significant move impacting health insurance policyholders, the Association of Healthcare Providers-India (AHPI) has announced that over 15,000 member hospitals will suspend cashless treatment services for Bajaj Allianz General Insurance Company starting September 1, 2025.
Why the Suspension?
According to AHPI, the decision was prompted by:
- Low reimbursement rates that have not been revised in line with rising medical costs.
- Unilateral payment deductions made by the insurer.
- Delays in payment clearance and in granting pre-authorisation and discharge approvals.
Hospitals claim that Bajaj Allianz has refused to update reimbursement rates despite repeated requests. Current tariffs, agreed upon years ago, have become unsustainable due to medical inflation, which averages 7–8% annually.
Impact on Patients
The suspension affects leading healthcare providers such as Max Healthcare, Medanta, and PSRI. While cashless services will be on hold, hospitals confirmed that treatment will still be available under a self-pay model, with patients able to claim reimbursement directly from the insurer afterward.
AHPI’s Broader Action
AHPI, which represents over 15,200 hospitals, has also issued a similar notice to Care Health Insurance, asking the insurer to respond by August 31, 2025. Failure to reach an agreement could lead to suspension of cashless services for Care Health Insurance policyholders as well.
AHPI’s Standpoint
Dr. Girdhar Gyani, Director General of AHPI, emphasized that continuing patient care at outdated reimbursement rates is unsustainable.
“Medical inflation in India is driven by rising staff costs, higher prices of medicines, consumables, utilities, and other overheads. Hospitals cannot continue at outdated rates without compromising quality of care,” Gyani said.
AHPI has recommended a biennial review of hospital tariffs in line with medical inflation, but alleges that Bajaj Allianz not only rejected the proposal but also pushed for further tariff cuts.
Bajaj Allianz Responds
In response, Bhaskar Nerurkar, Head of Health Administration at Bajaj Allianz, expressed surprise at the decision:
“We have always believed in providing the best hospitalisation experience to policyholders with fair rates and seamless claims. We are confident of resolving this matter amicably with AHPI in the best interests of our customers.”
What Policyholders Should Do
- Check with your hospital before admission regarding cashless coverage.
- Be prepared for upfront payments and reimbursement claims if admitted to an AHPI member hospital.
- Stay updated on negotiations between AHPI and insurers, as changes may occur.
📌 References
- Association of Healthcare Providers-India (AHPI) – Official Website
- Business Standard. “15K hospitals to suspend cashless services for Bajaj Allianz policyholders” (Published August 22, 2025).
