CHENNAI: The Association of Healthcare Providers – India (AHPI), representing over 15,000 hospitals and healthcare institutions across the country, warned suspension of cashless facility to Star Health Insurance policyholders over the latter’s questionable practices. The association issued a formal communication to Star Health Insurance on Friday.
The issues raised by the association include the insurer’s continued refusal to revise tariffs for several years despite high healthcare cost inflation, arbitrary withdrawal of cashless services, unjustified deductions from hospital bills and claim rejections after final approval. The hospital body has pointed out these issues may lead to compromised patient safety and quality of care by the member hospitals.
AHPI has warned that unless Star Health Insurance takes definitive steps to address the concerns expressed by member hospitals in a timely manner, AHPI and its member hospitals may withdraw cashless services for the policyholders of Star Health Insurance, effective from 22 September 2025.
In a statement issued on Friday, the hospital body also pointed out Star Health’s questionable practices.
“These include coercive demands to further reduce rates at the expense of patient care, unexplained deductions on approved claims, and abrupt withdrawal of cashless services from member hospitals. Collectively, these practices have caused serious disservice and hardship to patients and their families,” said the association in the statement.
To buttress its point, AHPI cited the Insurance Ombudsman Annual Report 2023-24, in which Star Health Insurance topped the list with over 13,300 complaints in FY24, with over 10,000 related to partial or full claim rejections.
AHPI has raised similar concerns with regards to Bajaj Allianz General Insurance and Care Health Insurance. The association has also expressed concern over the proposed GIC-led common empanelment process and abrupt stoppage of cashless services by insurers to pressurise member hospitals in lowering tariffs which it viewed as anti-competitive and lacking a sound legal basis.