Ensure Smooth Cashless Claims, Standardise Treatment Protocol: FinMin Nudges Insurers, Hospitals

The Secretary of the Department of Finanical Services M. Nagaraju advised insurers and hospitals to take steps to reduce health insurance costs on Thursday.

Nagaraju advised them to take measures such as devising standardised treatment protocols, common empanelment norms as well as seamless cashless claims processing, according to a post on the social media platform X.

"Secretary DFS, Shri M. Nagaraju chaired a meeting of representatives of leading insurers, hospitals, General Insurance Council and Association of Healthcare Providers (India) to discuss the issue of medical inflation and rising premium costs," official X handle of DFS posted.

He emphasised that the hospitals and insurance companies should work together to ensure transparency and efficiency and make healthcare affordable and accessible for policyholders, according to the post.

The Association of Healthcare Providers, in August, had plans to write to the Competition Commission of India over allegations of collusion by insurance companies for the reimbursement costs negotiated with the nation's medical institutions.

The AHPI representing hospitals and healthcare institutions across the country, decided to advise its member hospitals to stop providing cashless treatment facilities for policyholders of Bajaj Allianz General Insurance Company, with effect from Sept. 1, 2025.

The advisory followed complaints from AHPI member hospitals that Bajaj Allianz General Insurance Company has refused to revise hospital reimbursement rates in line with rising medical costs, a press release by the hospital association said. Sources said the course of action will depend on how the discussions with both companies pan out, and if these ongoing issues are resolved the association will withdraw the advisory.