The Association of Healthcare Providers of India (AHPI) said on Friday it had restored cashless hosptalisation services to private health insurer, Bajaj Allianz General Insurance, after a meeting between officials of the two to resolve their dispute.
On August 22, AHPI had announced its intent to suspend cashless hospitalisation services by its member hospitals for customers of Bajaj Allianz General Insurance and Care Health Insurance from September 1, 2025.
The hospitals’ association comprising 15,200 hospitals across India as its members had claimed of a series of repeated complaints from hospitals that Bajaj Allianz refused to revise hospital reimbursement rates in line with rising medical costs and, in fact, pressured hospitals to further reduce tariffs that were agreed upon years ago under now-expired contracts.
"We are pleased that the matter has been resolved in the interest of policyholders and citizens who must never face interruptions in their access to cashless healthcare. Cashless access is the backbone of health insurance and should never be compromised," said Bajaj Allianz General Insurance MD & CEO, Tapan Singhel, in a statement.
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However, he also emphasised that episodes of this nature reinforce the urgent need for a strong health regulator which he said they had been proposing for a while now to safeguard citizens’ interests and ensure transparency and fairness across the healthcare ecosystem.
Commenting on the issue, APHI Director General Girdhar Gyani said, "We urge all the insurers to work in partnership with hospitals and restore cashless services, as the disruption is placing an unfair financial and emotional burden on patients. They also need to engage with the member hospitals regularly to revise outdated rates, setting up transparent grievance mechanisms, and respecting clinical autonomy."
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