No Cashless Treatment from September 1 for Bajaj Allianz (and Possibly CARE), Says AHPI

AHPI Pulls Cashless Facility for Bajaj Allianz Policyholders

Effective September 1, 2025, hospitals under the Association of Healthcare Providers–India (AHPI)—a network of more than 20,000 hospitals including Max Super Speciality and Fortis Escorts—will cease offering cashless treatment to Bajaj Allianz General Insurance policyholders across North India. The move comes amid mounting complaints of outdated reimbursement rates, delayed claim settlements, and unilateral deductions, prompting hospitals to withdraw from the cashless system. While treatment remains available, patients will now need to pay upfront and seek reimbursement later.

CARE Health Insurance Also Under AHPI’s Radar

AHPI has also issued a notice to CARE Health Insurance, demanding a response by August 31, 2025. If unresolved, cashless services may also be suspended for CARE policyholders. CARE expressed surprise at the lack of details in AHPI's communication and emphasized its ongoing attempts to clarify the situation with hospital representatives.

Why the Suspension and What Lies Ahead

AHPI’s action stems from the 7–8% annual rise in medical inflation, which has not been matched by reimbursement rates from Bajaj Allianz. Hospitals accuse insurers of ignoring biannual tariff revisions, pressuring them to lower accepted rates, and implementing delayed and reduced payments. These practices, AHPI warns, risk compromising patient care. Both insurers—Bajaj Allianz and CARE—have stated their willingness to resolve differences, with discussions scheduled shortly. The situation underscores systemic issues in India's health insurance-provider ecosystem and may require regulatory intervention if an agreement isn’t reached.