AHPI Defers Plan To Drag Insurers To CCI, IRDAI
“We will propose that the pricing of medical treatment has to be decided by an independent body namely the Institute of Cost Accounts. The other issue that will be discussed will be of rebate. When a large insurer gives big business to a hospital, it is given a rebate by the hospital say 20 per cent. The rebate cannot be the same for smaller insurers that give me less business.”: Reports
MUMBAI: The Association of Healthcare Providers-India (AHPI) has put off its plans to approach the Competition Commission of India (CCI) and the insurance regulator over insurance companies’ decision to enforce tariffs for various treatments as the two would be meeting next week
to find an amicable solution.
The AHPI would also be meeting representatives of Bajaj Allianz General Insurance on Thursday to discuss the suspension of cashless services. According to sources, AHPI (association of over 15000 hospitals) in its meeting with the General Insurance Council (association of non-life insurance companies) next week while opposing the package rates decided by insurers would be advocating that Institute of Cost Accountants of India be appointed to do the costing for various medical treatments and procedures.
A senior member official at AHPI told FC, “We will propose that the pricing of medical treatment has to be decided by an independent body namely the Institute of Cost Accounts. The other issue that will be discussed will be of rebate. When a large insurer gives big business to a hospital, it is given a rebate by the hospital say 20 per cent. The rebate cannot be the same for smaller insurers that give me less business.”
“While insurers have formed a cartel offering the same pricing to hospitals, we deferred plans to approach the CCI and IRDAI for the time being based on the outcome of the negotiations with the insurers. Regarding the issue on suspension of cashless services for Bajaj Allianz policyholders, we have formed a group of 5-6 chief financial officers from various hospitals to amicably find a solution with Bajaj Allianz,” added the AHPI official.
Last week, AHPI asked its members in North India to stop providing cashless treatment facilities for Bajaj Allianz General Insurance Company and Care Health Insurance policyholders, with effect from
September 1. The decision was made in response to several hospital complaints that AHPI has received about Bajaj Allianz's failure to update hospital reimbursement rates in line with growing medical expenses.
In another development, the General Insurance Council has recently rolled out its initiative called Common Empanelment of hospitals onboarding hospitals and nursing homes for cashless treatments across the country that agree to its standardized package rates for various treatments. However, hospitals have objected to imposition of standard rates for medical procedures citing varying quality of treatment and fluctuating medical inflation.