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The Association of Healthcare Providers India (AHPI) has announced that more than 15,000 hospitals in North India, including Max Healthcare and Medanta, will discontinue cashless treatment for the Bajaj Aaliyanz General Insurance and potential Care Health Insurance Policy holders from September 1, 2025. This decision affecting millions of people stems from controversies arising over the old reimbursement rates amid annual medical inflation of 7-8%. AHPI has refused to amend the tariff by Bajaj Aaliyanz, arbitrary deductions, delays and slow pre-authorization procedures, which puts pressure on hospital operations. A similar notice has been issued to Care Health Insurance, seeking answers by August 31, 2025, otherwise cashless services may be discontinued.

The General Insurance Council (GIC) condemned the AHPI’s move, describing it as “arbitrary” and disruptive and warned that it reduces confidence in health insurance and puts patients in emergency conditions and forces patients to pay advance and take their lives at risk. The GIC urged AHPI to withdraw this advice and start negotiations by highlighting initiatives like Cashless Everyware and National Health Claims Exchange.

Bajaj Alianj expressed surprise, while Health Administration Head Bhaskar Nerurkar emphasized the ongoing conversation with AHPI to ensure uninterrupted customer experience. COO of Care Health, Manish Dodeja, described the lack of specific complaints in AHPI’s communication of 22 August, but expressed confidence to resolve the issues in a cordial manner.

Due to hospitals adopting self-paying models, policyholders may, especially in emergency situations, may face potential financial burden. The Director General of AHPI, Dr. Girdhar Giani stressed that the old rates are threats to the quality of patient care, and a meeting is scheduled on August 28 to resolve concerns. The result will shape the future of access to cashless healthcare in India.