In a major setback for policyholders, over 15,000 hospitals across India, including top chains like Max Healthcare and Medanta, will suspend cashless treatment services for customers of Bajaj Allianz General Insurance from September 1, 2025.

The decision, announced by the Association of Healthcare Providers-India (AHPI), follows long-standing disputes over low reimbursement rates, arbitrary deductions, delayed payments, and extended approval timelines for pre-authorisation and discharge.

AHPI said Bajaj Allianz has consistently refused to revise reimbursement rates in line with medical inflation, which has risen 7–8% annually due to higher staffing costs, medicines, consumables, and utilities.

Hospitals argue that continuing at outdated or reduced rates is unsustainable and risks compromising patient care. While cashless facilities are being suspended, hospitals clarified that Bajaj Allianz policyholders will still be treated on a self-pay basis, with the option to seek post-treatment reimbursement from the insurer.

AHPI has also issued a similar notice to Care Health Insurance, demanding a response by August 31, failing which cashless services for its policyholders may also be discontinued.

Reacting to the announcement, Bhaskar Nerurkar, Head of Health Administration at Bajaj Allianz, expressed surprise, stating the company has always aimed to provide policyholders with fair rates and seamless claims. He added that Bajaj Allianz will continue engaging with AHPI to reach a resolution in the best interest of customers.