Cashless Treatment Suspended for Bajaj Allianz Policyholders at Over 15,000 Hospitals
Hospitals Cite Cost, Payment Issues; Patients Must Pay First, Claim Later
New Delhi / Chennai: More than 15,200 hospitals across India, including major healthcare providers such as Max Healthcare, Medanta, and PSRI, have announced the suspension of cashless treatment facilities for policyholders of Bajaj Allianz General Insurance, effective September 1, 2025.
Hospitals Cite Rising Costs and Payment Issues
The decision follows mounting grievances from hospitals over Bajaj Allianz’s failure to revise reimbursement rates for several years despite annual medical inflation rates of 7–8%. Hospitals report that the rising costs of staff salaries, medicines, and consumables have not been adequately reflected in insurance payouts.
In addition, hospitals have expressed frustration over alleged unilateral deductions in claim settlements, delayed payments, and sluggish pre-authorisation and pre-discharge approval processes, which have strained hospital operations and finances.
The Association of Healthcare Providers of India (AHPI) has urged insurers to implement regular tariff revisions, ideally every two years, to align insurance payouts with prevailing medical inflation and ensure sustainable healthcare delivery.
Insurer Responds, Talks Underway
Bajaj Allianz expressed surprise at the collective move by hospitals and reaffirmed its commitment to fair reimbursement rates, timely claim processing, and high-quality service. The insurer stated that negotiations with hospital networks, including AHPI members, are ongoing to resolve the dispute amicably.
The company emphasized that it proactively addresses dues and claim-related queries and remains hopeful of reaching a mutually beneficial agreement in the interest of policyholders.
Impact on Policyholders
Starting September 1, policyholders will no longer be able to avail of cashless treatment at empanelled hospitals under Bajaj Allianz policies. Patients will need to pay hospital bills upfront and subsequently seek reimbursement from the insurer, a process that can be cumbersome during medical emergencies.
Policyholders are advised to check with hospitals in advance to confirm whether cashless treatment under Bajaj Allianz is still available. In case it isn’t, they should be prepared to make upfront payments by arranging emergency funds or flexible payment options. It is also important to retain all medical documentation, including discharge summaries, bills, and prescriptions, to ensure a smooth reimbursement process. Once treatment is complete, claims should be submitted promptly and monitored through Bajaj Allianz’s online portal.
Wider Implications for Healthcare Financing
This dispute highlights broader challenges within India’s healthcare insurance sector, particularly the sustainability of cashless treatment schemes. While cashless insurance coverage eases patient burden during emergencies, unresolved conflicts over tariff rates and claims processing risk undermine this convenience.
Similar tensions have been observed in government insurance programs such as Ayushman Bharat – PM-JAY, where hospitals have frequently cited unsustainable package rates as reasons for limiting participation.
Both AHPI and Bajaj Allianz appear committed to continuing discussions aimed at resolving the impasse. If successful, cashless services could be reinstated for Bajaj Allianz policyholders. Until then, affected policyholders must adapt to reimbursement-based care and exercise caution during hospital admissions.