AHPI Hospitals in North India to Suspend Cashless Treatment for Bajaj Allianz Policyholders

The Association of Healthcare Providers-India (AHPI) has decided to suspend cashless treatment facilities for Bajaj Allianz General Insurance policyholders at its member hospitals in North India, starting September 1, 2025. This move comes after hospitals raised concerns about low reimbursement rates and delays in claim settlements.

Why Are Hospitals Doing This for Bajaj Allianz Policyholders?

AHPI, which represents over 15,000 hospitals, including major healthcare providers like Max Healthcare and Medanta, said the decision follows repeated complaints from hospitals about several issues. These include:

• Low reimbursement rates that have not been revised despite rising medical costs
• Unilateral deductions in payments by the insurer
• Delays in claim settlements
• Long waiting times for approval of pre-authorisation and discharge requests

Hospitals have reported that continuing treatments at the current reimbursement rates is no longer financially sustainable.

Rising Medical Costs Add Pressure

Girdhar Gyani, Director General of AHPI, explained that the annual medical inflation rate in India is about 7–8%, caused by increasing costs of manpower, medicines, utilities, and overheads. Despite these rising costs, Bajaj Allianz has not revised its reimbursement tariffs in recent years. AHPI said it has asked the insurer to revise these tariffs every two years, but the insurer has instead sought further rate reductions.

What Did Bajaj Allianz Say?

Bhaskar Nerurkar, Head of the Health Administration Team at Bajaj Allianz General Insurance, said the company is committed to resolving these issues amicably. Bajaj Allianz has scheduled a meeting with AHPI representatives on August 28, 2025, to discuss and address their concerns.

Nerurkar assured that the company aims to maintain smooth access to quality healthcare for customers and is confident that through open discussions, both parties will find solutions that prioritise patient care.

What Does This Mean for Bajaj Allianz Policyholders?

While cashless treatment will be suspended, AHPI hospitals will continue to treat Bajaj Allianz policyholders on a self-pay basis. This means patients will need to pay hospital bills upfront and later claim reimbursements from Bajaj Allianz directly.

Read more: Can Banks Deny Loans for Low CIBIL Score? Here’s What the Finance Ministry Says.

Conclusion

The suspension of cashless facilities by AHPI hospitals reflects ongoing challenges between healthcare providers and insurers in India. Rising medical costs and delays in payments make current reimbursement rates unsustainable for hospitals. The upcoming talks between AHPI and Bajaj Allianz could lead to solutions benefiting both hospitals and patients. Meanwhile, Bajaj Allianz policyholders in North India should prepare to pay hospital bills upfront until the issue is resolved.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.