New Delhi [India], September 15 : The Association of Healthcare Providers of India (AHPI) and the Indian Medical Association (IMA) Hospital Board raised alarm over Star Health Insurance's suspension of cashless services at several prominent hospitals across India, leaving patients in distress.
AHPI and IMA hospital board, including some of the large tertiary care hospital chains, are facing an alarming situation, after 'Star Health Insurance' has suspended cashless services, leaving hospitals to manage irate and distressed patients who are suddenly denied the most basic facility of cashless treatment.
Hospitals and Nursing Homes, part of the Indian Medical Association Hospital Board, also share the same concerns. Star Health has slowed or stopped empanelling new hospitals, limiting patient access.
According to AHPI and IMA, "Star Health has also slowed down or outright stopped the empanelment of new hospitals, denying patients wider access to cashless services. This dual policy of suspension and refusal to empanel is creating unnecessary hardship for patients and undermining the credibility of health insurance."
Based on information available with AHPI, cashless services have been suspended in an arbitrary manner in many hospitals, and to name a few - Care Hospitals - Ramnagar, Vizag, Manipal Hospital - Delhi and Gurugram, Max Hospitals - North India, Metro Hospital- Faridabad, Medanta Hospital - Lucknow, Rajiv Gandhi Cancer Hospital - New Delhi Sarvodaya Hospital, Faridabad and Yatharth Hospitals.
Further, empanelment of several prominent hospitals has also been denied by Star Health thereby refusing the benefit of cashless to the communities living in that region. Again, to name a few, Care Health city, Vizag, Care Hospital, Malakpet, Hyderabad, Fortis Hospital, Manesar, Jupiter Hospital, Indore, Max Hospital, Dwarka, Medanta Hospital, Noida etc.
Such delays in empanelment are restricting patient choice and affecting hospitals, to protect patients from financial and emotional stress and empanelment of new hospitals must be expedited, forcing many families into the reimbursement route, which defeats the purpose of health insurance.
"Cashless services must be restored immediately to all, so that patients can access care across India without disruption," said AHPI
According to the release issued by the General Insurance Council (GIC), AHPI would like to state that AHPI's decision was neither arbitrary nor unilateral, but a necessary response to the unilateral and arbitrary actions of Star Health Insurance in de-empanelling hospitals and withdrawing cashless services.
Dr Girdhar Gyani (AHPI) and Dr Abul Hasan (IMA Hospital Board) urge Star Health to restore cashless services immediately, ensuring patients receive seamless care and hospitals are treated fairly. "Patients deserve seamless access, and hospitals deserve fair treatment," they stated
In a meeting held on September 14, 2025, they issued a joint statement, "Patients buy health insurance with the clear expectation of receiving cashless treatment at quality hospitals. It is unjust for insurers to withhold this facility after collecting premiums, leaving families to scramble for funds at the time of hospitalisation. Patients deserve seamless access, and hospitals deserve fair treatment as service providers. Star Health must act urgently to restore trust and ensure that its insured members are not penalised for choosing the hospitals best suited to their medical needs."
Meanwhile, the General Insurance Council (GIC) affirmed its commitment to Star Health Insurance to safeguard policyholders.
"GIC today announced its support to Star Health and Allied Insurance following the unilateral and unwarranted action taken by the Association of Healthcare Providers (India) (AHPI), threatening suspension of cashless services for policyholders. Such arbitrary action prejudices the interests of policyholders and risks undermining trust in the health insurance ecosystem," read GIC press release,
The AHPI's decision to potentially suspend cashless services has caused quite a stir, worrying patients and insurers alike.
"The Council had proactively scheduled a meeting with AHPI on September 2, 2025, to constructively resolve concerns. However, AHPI rescheduled the meeting to a future date yet to be confirmed. Despite this, AHPI has proceeded with its unilateral action, signalling a preference for disruption over collaboration to improve customer service and protect patient interests," added the release.
Star Health policyholders can breathe easy - their access to healthcare stays uninterrupted. "Tariff negotiations and billing practices are regular business activities between hospitals and insurers and should never be used to compromise patient care. Star Health policyholders will continue to have uninterrupted access to healthcare, ensuring their coverage remains fully protected. Any disruption in cashless services directly impacts families through higher upfront expenses and risks patient well-being in emergencies," added the release.
The GIC further urged AHPI to immediately withdraw its warning and engage constructively with insurers, ensuring uninterrupted cashless services for all policyholders.