Summary of this article
AHPI restores cashless services for Bajaj Allianz after policy dispute.
Hospitals flagged stalled package rates, deductions, and consumables non-payment.
Bajaj Allianz promised a detailed action plan by September-end.
Patients regain cashless access, but insurer-hospital cost tussle continues.
The Association of Healthcare Providers of India (AHPI) has called off its suspension of cashless services for Bajaj Allianz General Insurance, according to a press statement issued by AHPI. The climbdown came after a long meeting where both sides thrashed out sticking points that had pushed hospitals to the brink.
Hospitals Push Back On Stalled Rates And Deductions
Hospitals had complained of endless delays in empanelment, rates that haven’t been revised in years, and last-minute deductions that left them out of pocket. The cost of implants, robotic surgery, and new cancer drugs had also become flashpoints, with insurers disputing bills and pressing doctors to opt for cheaper options.
Another sore point was insurers refusing to pay for consumables, while at the same time stopping hospitals from billing patients directly. Several members said they were routinely threatened with suspension of cashless services, sometimes on flimsy grounds.
1 August 2025
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After a hard exchange, Bajaj Allianz agreed to file a detailed action plan by the end of September. On that promise, AHPI rolled back its suspension and restored cashless facilities immediately.
Dr. Girdhar Gyani, director general, said hospitals were willing to work with insurers, but not at the cost of patient safety or clinical independence. “When cashless services stop, patients and families end up paying the price. That is what we want to avoid,” he said.
For Bajaj Allianz customers, the decision is a relief. They can once again walk into AHPI member hospitals and access cashless treatment. But the larger tussle between hospitals and insurers, how to balance rising healthcare costs with affordable insurance, remains unsettled.
Bigger Battle Between Hospitals And Insurers
Industry watchers say this is not an isolated fight. Across the country, private hospitals have been flagging similar concerns with other insurers. Package rates for procedures such as angioplasty or knee replacement have remained frozen for years, even as input costs, from medical staff to imported devices, have gone up sharply. Many providers argue that insurers use their combined bargaining power to push hospitals into accepting unsustainable rates, leaving little room for quality upgrades.
On the other side, insurers say unchecked hospital charges would mean higher premiums for policyholders, eroding affordability. That tug-of-war often plays out in cashless arrangements, with patients ending up as collateral damage.
The AHPI–Bajaj Allianz settlement may have prevented a bigger disruption, but it also shows how fragile the hospital–insurer relationship has become. Unless both sides agree on a more transparent framework, covering rates, newer technologies, and grievance redressal, such flashpoints are likely to return. For now, though, policyholders can breathe easy.
