Hospitals To Stop Cashless Services For Bajaj Allianz, Patients To Pay Upfront From Sept 1

New Delhi: From September 1, thousands of policyholders of Bajaj Allianz General Insurance may lose access to cashless treatment in several top hospitals across North India. The Association of Healthcare Providers India (AHPI) has advised its 15,000 member hospitals — including Max Healthcare and Medanta — to suspend cashless facilities for Bajaj Allianz customers.

Why hospitals are taking this step

Hospitals allege that Bajaj Allianz has not revised reimbursement tariffs in line with rising healthcare costs. Instead, the insurer has been pushing hospitals to cut rates further, despite existing agreements having already expired.

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They also flagged unilateral deductions, delayed claim payments, and slow approvals for treatments and discharges.

“Medical inflation in India is nearly 7–8 percent every year due to rising staff costs, medicines, utilities and overheads. Continuing at outdated rates is unsustainable and may hurt patient care,” said Dr. Girdhar Gyani, Director General of AHPI.

Impact on policyholders

From September, Bajaj Allianz policyholders can still seek treatment at these hospitals, but they must pay out of pocket first and later file for reimbursement directly with the insurer. This could mean more hassle and financial stress for patients seeking urgent or expensive care.

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Possible action against another insurer

AHPI also shared that it has issued a similar notice to Care Health Insurance on August 22, asking the company to respond by August 31. If issues are not resolved, cashless services for Care Health customers may also be suspended.