In a major move affecting health insurance holders, over 15,000 hospitals in northern India will suspend cashless treatment for Bajaj Allianz General Insurance policyholders from September 1, 2025. This decision, announced by the Association of Healthcare Providers–India (AHPI), includes major hospital chains like Max Healthcare, Medanta, and PSRI. The AHPI cited outdated reimbursement rates, rising medical inflation, delayed settlements, and arbitrary payment cuts as key reasons for the action. Despite repeated appeals, Bajaj Allianz has not updated its reimbursement tariffs, which AHPI says are no longer viable due to rising healthcare costs.
Patients can still receive treatment at these hospitals, but must pay upfront and later claim reimbursement. AHPI emphasized this is a temporary suspension, pending fair tariff negotiations. The association has also issued a similar warning to Care Health Insurance, requesting a response by August 31.
Bajaj Allianz expressed surprise and stated its commitment to resolving issues. Care Health Insurance also responded, saying it had only recently received communication from AHPI and is working to clarify the matter. For now, uncertainty looms for Bajaj Allianz policyholders needing care at major hospitals.