Star Health Insurance's Cashless Services May Get Stopped From Sept 22, AHPI Warns

The Association of Healthcare Providers – India (AHPI), on Friday said that it issued a formal communication to Star Health Insurance, warning the company of potential withdrawal of cashless services for its policyholders.

Persistent issues faced by member hospitals with the insurance provider include continued refusal to revise tariffs for several years in line with prevailing healthcare cost inflation, pressure to further reduce outdated tariffs, unjustified deductions from hospital bills and claim rejections post final approval, stated a release from AHPI.

"AHPI and its member hospitals are left with no choice but to withdraw cashless services for the policyholders of Star Health Insurance, effective from September 22, 2025, unless Star Health Insurance takes definitive steps to address the concerns expressed by member hospitals in a timely manner," it said.

This decision follows repeated complaints from member hospitals regarding Star Health Insurance’s questionable practices, according to the release.

"These include coercive demands to further reduce rates at the expense of patient care, the raising of frivolous queries that undermine treating doctors’ clinical judgement, unexplained deductions on approved claims, and abrupt withdrawal of cashless services from member hospitals," the association stated.

Collectively, these practices have caused serious disservice and hardship to patients and their families, it added in the release.

AHPI has accused Star Health of anti-competitive conduct. The company, often in concert with other insurers, engages in collective bargaining practices designed to arbitrarily suppress hospital tariffs, it alleged.

Dr Girdhar Gyani, Director General at AHPI, said that “the systemic failure of Star Health Insurance to address legitimate grievances, combined with their unfair practices, leaves us with no choice but to take appropriate action."

Previously, the association had called for the withdrawal of cashless services of Bajaj Allianz General Insurance Company. The instructions were later withdrawn, following talks between the association and the company.