AHPI May Suspend Cashless Services for Star Health

By siliconindia | Saturday, 13 September 2025, 06:47 Hrs

AHPI may suspend cashless services for Star Health policyholders from September 22 due to unresolved tariff and claim issues.
Hospitals report rising costs without tariff revisions, claim deductions, and sudden service withdrawals.
AHPI urges dialogue with Star Health to protect patients and healthcare providers.

The Association of Healthcare Providers India (AHPI), representing over 15,000 hospitals nationwide, has warned that its member hospitals may stop offering cashless services to Star Health Insurance policyholders starting September 22, 2025. The move comes amid ongoing disputes over tariffs and claim settlements that have not been resolved.

AHPI’s concerns include the lack of tariff adjustments despite rising healthcare costs, pressure on hospitals to reduce existing tariffs, frequent deductions from approved claims, claim rejections even after final approvals, and sudden withdrawal of cashless benefits. These issues, the association says, harm patient care and threaten hospital finances.

Girdhar Gyani, Director General of AHPI, said, “We must protect the interests of both patients and healthcare providers.” He emphasized that even if cashless services are suspended, hospitals will still treat Star Health policyholders on a self-pay basis, allowing patients to file for reimbursement after discharge.

The association highlighted data from the Insurance Ombudsman Annual Report 2023-24, showing over 13,300 complaints against Star Health, with more than 10,000 related to claim rejections. AHPI also raised concerns about insurers’ collective bargaining, which it says suppresses hospital tariffs and limits fair negotiation.

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Despite the warning, AHPI remains open to discussions with Star Health. Gyani added, “We hope for a constructive dialogue and a positive resolution that benefits both patients and healthcare providers”.

As this issue develops, policyholders are advised to stay informed and prepare for possible changes in their cashless service options with Star Health.