Hospitals To Suspend Cashless Services For Bajaj Allianz Policyholders From Sept. 1

In a move that could impact thousands of policyholders, Association of Healthcare Providers India has advised its member hospitals across North India to suspend cashless treatment facilities for customers of Bajaj Allianz General Insurance Company starting September 1, the press release said.

This development is crucial as over 15,000 member hospitals including Max Healthcare and Medanta, which would now stop cashless treatment by Bajaj Allianz.

The decision comes after repeated grievances from hospitals that the insurer has refused to revise reimbursement rates in line with rising medical costs, and has instead pressured providers to further reduce tariffs agreed upon years ago under expired contracts.

Hospitals have also flagged unilateral deductions, delayed payments, and lengthy approval processes for pre-authorisations and discharges.

"Medical inflation in India hovers around 7-8% annually due to rising manpower costs, medicines, utilities and overheads. Continuing treatment at outdated rates is unsustainable and risks compromising patient care," Girdhar Gyani, Director General of AHPI said.

"We have always advocated for tariff reviews every two years, but Bajaj Allianz has rejected fair revisions and demanded further reductions."

AHPI clarified that hospitals will continue to treat Bajaj Allianz policyholders, but only on a self-pay basis, with patients seeking reimbursement directly from the insurer.

The association also revealed that a similar notice was issued to Care Health Insurance on August 22, seeking a response by August 31. Failing a resolution, cashless services for Care Health Insurance customers may also be suspended, the press release said.

AHPI reiterated its willingness to engage with insurers to ensure affordable and quality healthcare but stressed that sustainability of hospitals cannot be compromised.

This development could create uncertainty for policyholders, who may face out-of-pocket expenses until a fresh agreement is reached between insurers and hospitals.

"We are surprised by this announcement. At Bajaj Allianz, we have always believed that policyholders should receive the best possible hospitalisation experience with fair rates, seamless claims and quality service," the company said in its response.

Bajaj Allianz said that it is proactively engaging with all hospitals to settle any queries or dues from its side.

"We are confident of working amicably with AHPI and its member hospitals to arrive at a solution that is in the best interests of our customers," the company added.