Why 15,200 hospitals stopped cashless care for Bajaj Allianz policyholders

The insurer has refused to revise outdated reimbursement rates despite 7-8% annual medical inflation, pressured hospitals to cut tariffs further, and made unilateral deductions on claims.

Imagine rushing a loved one to the hospital, only to be told that your “cashless” insurance card won’t work anymore. That’s the reality facing lakhs of Bajaj Allianz health insurance policyholders across North India starting September 1, 2025, as over 15,000 hospitals, including big names like Max Healthcare and Medanta, have decided to withdraw cashless treatment facilities.

 

The standoff stems from a bitter dispute between hospitals and the insurer. According to the Association of Healthcare Providers of India (AHPI), reimbursement rates offered by Bajaj Allianz have not been updated in years, even though medical inflation in India has been climbing at 7–8% annually. Hospitals also allege that the insurer makes unilateral deductions and often delays settlement of claims, putting financial strain on healthcare providers.

 

 

What triggered this response?

 

The Association of Healthcare Providers of India (AHPI), which represents these hospitals, says the move follows long-standing disputes with the insurer over reimbursement rates, payment delays, and claim settlement practices.

 

Refused to Revise Tariffs

 

Hospitals say Bajaj Allianz continues to pay at outdated reimbursement rates, even though medical inflation is 7–8% annually, driven by rising costs of medicines, equipment, staff salaries, and utilities.

 

In fact, hospitals allege the insurer has pressured them to cut tariffs further, despite agreements having expired years ago.

 

Unilateral Deductions

 

Several hospitals reported that even when claims were submitted as per agreed rates, Bajaj Allianz made arbitrary cuts, lowering final payouts without adequate explanation.

 

Payment Delays & Approvals

 

Hospitals also flagged delayed payments and excessive time taken for issuing pre-authorisation (pre-auth) and pre-discharge approvals—causing both cash flow issues for hospitals and delays for patients at discharge.

 

“Continuing at outdated rates, let alone lowering them, is unsustainable and risks compromising patient care—something AHPI and its members will not accept,” said Dr. Girdhar Gyani, Director General, AHPI.

 

In short: Hospitals believe they can’t continue offering cashless treatment if they’re being underpaid, shortchanged, and forced to wait months for settlements. They say the system is unsustainable unless Bajaj Allianz agrees to revise tariffs and improve claim processing.

 

For policyholders, the immediate impact is clear: no more on-the-spot cashless treatment Instead, patients will now have to pay upfront for surgeries, consultations, or hospital stays—even at empanelled hospitals—and later file for reimbursement from Bajaj Allianz. That could mean scrambling to arrange lakhs of rupees during emergencies.

 

The insurer, however, expressed surprise at the decision. "At Bajaj Allianz, we have always believed policyholders should receive the best possible hospitalisation experience with fair rates, seamless claims and quality service. We proactively engage with all hospitals to settle any queries or dues. We are confident of working amicably with AHPI to find a solution in the best interests of our customers,” said Bhaskar Nerurkar, Head – Health Administration Team, Bajaj Allianz General Insurance.

 

What Policyholders Should Do Now

 

Keep emergency funds handy: With cashless unavailable, liquidity becomes critical.

 

File claims quickly: Save every bill, discharge summary, and test report to avoid disputes.

 

Track updates: The suspension is not permanent; cashless may return once new tariffs are negotiated.

 

For now, Bajaj Allianz customers must brace for a more cumbersome, cash-driven process, even as talks continue between the insurer and hospital networks. Until the deadlock breaks, policyholders may want to double-check hospital payment policies before an emergency strikes.

 

What to Do If You’re a Bajaj Allianz Policyholder

 

Check Hospital Status

 

Before admission, call the hospital to confirm if cashless is available.

 

Be Prepared to Pay Upfront

 

Keep emergency funds or credit options ready, as you may need to settle bills first.

 

Collect All Documents

 

Save discharge summaries, prescriptions, bills, and diagnostic reports—these are essential for reimbursement.

 

File for Reimbursement Promptly

 

Submit claims to Bajaj Allianz with complete documents as soon as possible to avoid delays.

 

Track Your Claim

 

Use Bajaj Allianz’s online portal or customer helpline to monitor claim status.

 

Stay Updated

 

Watch for announcements from AHPI and Bajaj Allianz, as cashless services may resume once disputes are resolved.