From September 1, thousands of Bajaj Allianz General Insurance policyholders may no longer enjoy cashless treatment at major hospitals across North India. The Association of Healthcare Providers India (AHPI), which represents over 15,000 hospitals including well-known names like Max Healthcare and Medanta, has advised its members to suspend cashless facilities for Bajaj Allianz customers.
Why Hospitals Are Taking a Stand
Hospitals argue that the insurer has failed to update reimbursement rates in line with rapidly increasing medical costs. Instead, they claim Bajaj Allianz has been pressuring them to further reduce charges, even though previous agreements have already lapsed.
Healthcare providers also raised concerns about arbitrary deductions, delays in clearing claims, and slow approvals for treatments and patient discharges.
“Medical costs in India rise by around 7–8% annually, driven by salaries, medicines, utilities, and other overheads. Continuing at outdated rates isn’t sustainable and could ultimately impact patient care,” explained Dr. Girdhar Gyani, Director General of AHPI.
What This Means for Policyholders
From September onwards, Bajaj Allianz customers will still be able to get admitted to these hospitals, but they will have to bear the treatment costs upfront. Reimbursements can then be claimed directly from the insurer. This change could create inconvenience and financial strain, especially for patients needing urgent or high-value treatments.
Meanwhile, AHPI has also issued a notice to Care Health Insurance, asking the company to address similar concerns before August 31. If not resolved, Care Health customers may soon face the same suspension of cashless benefits.
