Cashless Claims For Star Health Insurance Customers To Be Restored By Oct 10
Last week, AHPI had threatened to suspend cashless services for Star Health Insurance policyholders from September 22: Reports
MUMBAI: In a significant relief to policyholders of Star Health Insurance policyholders, the Association of Healthcare Providers of India (AHPI) has revoked its advisory on suspension of cashless services that was to kick in from Monday. AHPI representing 15000 hospitals and healthcare institutions announced that cashless services for the insurer’s customers will resume from October 10. While AHPI has stated that both parties will work towards resolving the long-standing issue of tariff revision by October 31, 2025, it said that the failure to resolve this may result in another round of suspension of cashless claim settlement for Star Health Insurance policyholders.
Last week, AHPI had threatened to suspend cashless services for Star Health Insurance policyholders from September 22. It accused Star Health Insurance of indulging in unfair practices and said that the
insurer refused to revise hospital tariffs in line with rising healthcare costs, indulged in unjustified deductions from bills and rejected claims even after final approvals. However, both the parties
negotiated to address ongoing concerns and reinstate continuity of patient services on a cashless basis.
Health insurance policyholders are again witnessing sporadic cases of suspension of cashless hospitalization as hospitals and insurers spar over the issue of tariff rates for medical treatments. Last month saw Niva Bupa Health Insurance suspending cashless treatment facility at Max Hospitals. In another incident last month AHPI had announced the suspension of the cashless claim settlement facility for Bajaj Allianz.
General Insurance, effective September 1, 2025, stating that Bajaj Allianz had not “revised tariffs for many years, despite consistent medical inflation and rising operational costs, and the member
hospitals cannot lower the tariffs further without compromising on clinical quality”. However, after negotiations both the factions reconciled.
Ironically, these developments come at a time when the Insurance Regulatory and Development Authority of India (IRDAI) is pushing for 100 per cent cashless treatment across India.