Hospitals in North India to stop cashless handling for Bajaj Allianz Policyholders from September 2025 prevalent suspension of cashless services by Over 15,000 Member Hospitals.
The Association of Healthcare Providers-India (AHPI) announced on Friday that more than 15,000 member hospitals across North India, along with key healthcare providers like Max Healthcare and Medanta, will assign cashless treatment services for Bajaj Allianz General Insurance policyholders starting September 1, 2025.
The decision follows current disputes over low repayment rates, overdue payments, and random deductions by the insurer.
AHPI cited regular complaints from hospitals associated to Bajaj Allianz’s refusal to revision reimbursement tariffs to reflect increasing medical costs. Hospitals informed significant suspensions in issuing pre-authorization and discharge consents, contributing to functional challenges. AHPI highlighted that medical inflation in India turns between 7 to 8 percent annually, driven by rises in labour, medicine, and overhead costs, which recent repayment rates flop to accommodate.
Impact on Policyholders and Hospitals
In spite of the interruption of cashless services, hospitals will treat Bajaj Allianz policyholders on a self-pay basis. Patients will be required to pay upfront and pursue reimbursement directly from their insurer subsequently.
AHPI also issued a parallel warning to Care Health Insurance, challenging a response by August 31. Should discussions fail, a comparable suspension of cashless treatment could be imposed for Care Health Insurance recipients.
AHPI mentioned that supporters for a biennial review of tariffs affiliated with medical inflation to safeguard hospitals can continue service quality without cooperating patient care.
The association emphasized that Bajaj Allianz’s persistence on dropping rates under expired agreements has placed healthcare providers under unjustifiable financial pressure.
Response from Bajaj Allianz
These development highlights ongoing tensions between healthcare businesses and insurers in India’s developing health insurance market. The significances of these negotiations will be thoroughly monitored by patients and industry stakeholders similarly.
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