GI Council responds to AHPI’s suspension of cashless services

Mumbai, Aug 28

On August 22, the Association of Healthcare Providers (India) [AHPI] announced its intent to suspend cashless hospitalisation services for customers of Bajaj Allianz General Insurance and Care Health Insurance from September 1. This action was arbitrary, lacking clarity or actionable details.

This sudden unilateral action on part of AHPI has created unnecessary confusion and concerns amongst citizens, impacting the trust in the health insurance ecosystem. Instead of enabling dialogue and resolution, a press statement was abruptly issued, prejudicing the interests of policyholders across the country.

The health insurance industry in India has consistently worked to make quality healthcare accessible and affordable for all. Initiatives such as Cashless Everywhere and the National Health Claims Exchange (NHCX) have been launched with the sole aim of ensuring that citizens can avail seamless treatment anywhere in the country without financial stress. Insurers have invested heavily in building these reforms and have supported crores of health ensure enrolments and settled more than Rs. 87000 Cr. In claims during 2023-24, a direct demonstration of their commitment to the people of India.

The Council strongly believes that any action which disrupts cashless access ultimately harms the citizens. Disruption in cashless service not just directly impacts families through higher upfront spends on treatments and out-of-pocket expenses, it also threatens survival of patients in critical medical conditions requiring immediate medical attention. Such action on part of AHPI undermines the sanctity of a human life, especially in cases requiring emergency hospitalisation, where a policyholder should not be denied cashless treatment and be forced to make financial arrangement. It’s a combined responsibility of entire healthcare ecosystem to protect lives and ensure that health insurance remains a reliable and affordable safety net for every Indian citizen.

As an industry, we stand united: when an insurer is unfairly targeted, the issue is much serious as it adversely affects interests of crores of citizens who depend on health insurance for financial protection and access to healthcare. More importantly, our solidarity is with the people of India. Patients and families must never be put to such level of uncertainty and hardships for such reasons.

The General Insurance Council denounces the unilateral approach adopted by AHPI. We urge AHPI to immediately withdraw the advice to its members and ask them to engage constructively with the insurance companies by continuing cashless services for all health insurance policyholders. We remain committed to build a healthier and more resilient India, and we invite all stakeholders to come together in a spirit of partnership so that every citizen can continue to access quality healthcare without financial hardship.

EoM.