‘Unjust and arbitrary’: AHPI demands Star Health restore cashless services at major hospitals

The Association of Healthcare Providers of India (AHPI) has raised alarm over the suspension of cashless treatment services by Star Health Insurance at several prominent hospitals, calling the move arbitrary and harmful to patients. The organisation, along with the Indian Medical Association (IMA) Hospital Board, has urged the insurer to restore services immediately and expedite pending empanelments.

AHPI said cashless services have been suddenly withdrawn from a list of major hospitals, forcing patients into out-of-pocket expenses and reimbursement claims. Among those affected are Care Hospitals (Ramnagar, Vizag), Manipal Hospital (Delhi and Gurugram), Max Hospitals (North India), Metro Hospital (Faridabad), Medanta (Lucknow), Rajiv Gandhi Cancer Hospital (New Delhi), Sarvodaya Hospital (Faridabad), and Yatharth Hospitals.

The suspension, AHPI noted, is creating “unnecessary hardship” and severely undermining patient trust in health insurance.

In addition to suspensions, Star Health has slowed or denied empanelment of several prominent hospitals, limiting policyholders’ options for cashless care. Hospitals facing empanelment delays include Care Health City (Vizag), Care Hospital (Malakpet, Hyderabad), Fortis Hospital (Manesar), Jupiter Hospital (Indore), Max Hospital (Dwarka), and Medanta (Noida).

“This dual policy of suspension and refusal to empanel is forcing families into the reimbursement route, which defeats the purpose of health insurance,” AHPI said in its statement.

AHPI’s stand against arbitrary action

Responding to a recent press release by the General Insurance Council (GIC), AHPI emphasised that its decision to highlight the issue was not arbitrary but a “necessary response” to Star Health’s unilateral withdrawal of services.

Dr Girdhar Gyani, Director General of AHPI, and Dr Abul Hasan, Chairman of the IMA Hospital Board, issued a joint statement after a meeting on September 14: “Patients buy health insurance with the clear expectation of receiving cashless treatment at quality hospitals. It is unjust for insurers to withhold this facility after collecting premiums, leaving families to scramble for funds at the time of hospitalization. Patients deserve seamless access, and hospitals deserve fair treatment as service providers.”

The two leaders stressed that Star Health must act urgently to restore trust and ensure patients are not penalised for their choice of hospital.

The Association of Healthcare Providers – India (AHPI) is an umbrella body representing over 15,000 hospitals across the country. It works to promote excellence in healthcare delivery and actively engages with policymakers on reforms, infrastructure, health insurance, and equitable access to care.

Statement from Star Health 

In a statement, Star Health said that it had not received any case of cashless suspension from its network partners with whom it had bilateral agreements. "AHPI has chosen to issue threats of suspending cashless services in a manner that is arbitrary, lacking clarity or actionable details. AHPI’s abrupt press statement has only prejudiced the interests of policyholders across the country and created unnecessary confusion at a time when the government is promoting healthcare as a basic necessity by exempting GST on health insurance."

"We reassure our customers that their access to healthcare through Star Health Insurance will not be impacted. Even if this were to happen, we will ensure that customers get their claim payments before paying the hospital," the statement added.