The Association of Healthcare Providers–India (AHPI), representing more than 15,000 hospitals across the country, has cautioned that its member hospitals may suspend cashless services for Star Health Insurance policyholders from September 22, 2025, if concerns raised with the insurer are not addressed.

 

In a formal communication, AHPI said member hospitals have highlighted issues such as the absence of tariff revisions in line with rising healthcare costs, pressure to reduce existing tariffs, deductions from approved claims, claim rejections after final approval, and sudden withdrawal of cashless services.

 

The association said these practices affect both patient care and the financial stability of hospitals.

 

“Our primary responsibility is to safeguard the interests of both patients and healthcare providers,” said Girdhar Gyani, Director General of AHPI.

 

If cashless services are suspended, AHPI noted that hospitals will continue to provide treatment to Star Health policyholders on a self-pay basis, with patients able to seek reimbursement from the insurer after discharge.

 

AHPI also referred to the Insurance Ombudsman Annual Report 2023–24, which recorded more than 13,300 complaints against Star Health, over 10,000 of them related to partial or full claim rejections.

 

The association further expressed concern over what it described as collective bargaining by insurers, which it said suppresses hospital tariffs and limits fair negotiations.

 

AHPI said it remains open to discussions with Star Health. “We remain open to constructive engagement and look forward to a positive resolution in the best interests of patients and healthcare providers alike,” Gyani added.

 

Star Health, however, said it has not received any case of cashless suspension from the network partners with whom they have bilateral agreements.

 

“AHPI has chosen to issue threats of suspending cashless services in a manner that is arbitrary, lacking clarity or actionable details. AHPI’s abrupt press statement has only prejudiced the interests of policyholders across the country and created unnecessary confusion at a time when the government is promoting healthcare as a basic necessity by exempting GST on health insurance,” Star Health said in a statement.

 

The insurer reassured its customers that their access to healthcare will not be impacted. Even if this were to happen, the company will ensure that customers get their claim payments before paying the hospital.