Cashless Services To Return At AHPI Hospitals After Agreement with Star Health

The uncertainty over cashless treatment at several hospitals is finally set to end. On September 21, the Association of Healthcare Providers of India (AHPI) and Star Health and Allied Insurance said in a press statement that they had reached an agreement that will bring back cashless facilities at AHPI member hospitals from October 10.

The move reverses an earlier advisory by AHPI that had asked hospitals to stop offering cashless treatment from September 22, after disagreements over tariffs and other issues. For patients, the restoration means one thing above all: they won’t have to worry about arranging large sums of money before being admitted.

Relief For Patients And Families

Both AHPI and Star Health said the decision was taken in the interest of policyholders. The two sides have also agreed to keep talking so that pending matters, including tariff revisions, can be settled by the end of October. AHPI has further promised to create a panel of industry leaders who will work with insurers to prevent similar breakdowns in the future.

“This decision has been taken in the best interest of patients and policyholders, ensuring they continue to receive timely, hassle-free access to healthcare services without financial distress,” the joint statement said.

Dr. Girdhar Gyani, director general, AHPI, added in the press statement: “We are pleased that our dialogue with Star Health Insurance has resulted in this positive outcome. The restoration of cashless services will ease the burden on patients and their families, who deserve uninterrupted access to care.”

Star Health, too, struck a conciliatory note. Anand Roy, its MD and CEO, said: “Our foremost priority is the well-being of our policyholders. Restoring cashless services at member hospitals reflects our commitment to ensuring accessible, affordable, and seamless healthcare for our customers.”

Why Cashless Matters

Cashless hospitalisation has become the most valued feature of health insurance for many families. Instead of paying bills first and waiting weeks for reimbursement, patients can simply present their policy card and let the insurer settle directly with the hospital. In emergencies, this often makes the difference between quick admission and stressful delays.

India’s rising medical costs have made this facility even more critical. A single hospitalisation can wipe out months of savings if families are forced to pay upfront. For this reason, the restoration of services at AHPI’s 15,000-plus hospitals — covering a wide geographical spread — is a significant win for consumers.

Star Health, which leads the standalone health insurance market and has settled over one crore claims, has built much of its reputation on smooth claims handling. Any breakdown in cashless arrangements, therefore, had the potential to dent consumer trust.

By coming together, both AHPI and Star Health have reassured policyholders that their interests remain central. For households already battling inflation and rising healthcare bills, the return of cashless services means one less worry when facing a medical emergency.