Hospitals across North India will soon restart cashless treatment facilities for Bajaj Allianz General Insurance customers, after the Association of Healthcare Providers of India (AHPI) resolved its standoff with the insurer over tariff and reimbursement issues.
Following a meeting between both sides, AHPI announced that Bajaj Allianz had assured them of formal measures to address long-standing concerns. “There was broad agreement on all issues. With Bajaj Allianz’s commitment, we are immediately withdrawing the suspension of cashless services,” the association said.
Dr. Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance, welcomed the resolution, stating: “We are pleased that the matter has been resolved in the best interest of policyholders. Access to cashless healthcare should never be disrupted. We remain committed to working in partnership with hospitals to overcome operational challenges.”
AHPI represents more than 15,000 hospitals across India, including large private chains such as Max and Fortis. Just a few days ago, it had instructed its members to suspend cashless services for Bajaj Allianz policyholders, accusing the insurer of unfair pricing practices and resisting justified rate revisions.
The association argued that hospitals are under financial stress as insurers have not updated rates for years, despite India facing annual medical inflation of 7–8% due to rising costs of consumables, utilities, and manpower. It also alleged that insurers were pressuring hospitals to accept further rate cuts, even threatening to block cashless services, while also interfering with clinical decisions by urging doctors to use cheaper drugs or implants.
On the other hand, insurers contend that non-transparent hospital pricing and wide variations in treatment costs call for greater oversight. Many have called for a central regulator to standardize rates and reduce recurring disputes.
One proposed solution is the wider adoption of the National Health Claims Exchange (NHCX) a digital platform developed by the Ministry of Health and Family Welfare to streamline and standardize health insurance claims. Already used by insurers and TPAs, the system promises greater transparency in pricing and efficiency in processing. It covers both government-funded schemes like Ayushman Bharat and private insurance reimbursements.
