New Delhi : The Association of Healthcare Providers – India (AHPI) issued a formal notice to Star Health Insurance on Friday, accusing the insurer of unfair practices and warning that member hospitals may suspend cashless services for policyholders.
AHPI highlighted persistent issues faced by member hospitals, including refusal to revise tariffs according to healthcare cost inflation, pressure to reduce outdated tariffs, arbitrary withdrawal of cashless services, unjustified deductions, and claim rejections even after final approval.
“These practices have caused serious hardship to patients and their families,” the association stated, adding that they could compromise patient safety and care quality.
AHPI warned that unless Star Health addresses these concerns promptly, it may withdraw cashless services from September 22, 2025. The association represents over 15,000 hospitals and healthcare institutions nationwide.
Repeated complaints from member hospitals and the Insurance Ombudsman Annual Report 2023-24 support AHPI’s claims. Star Health topped the list with over 13,300 complaints in FY24, including more than 10,000 related to partial or full claim rejections.
Dr. Girdhar Gyani, AHPI Director General, said, “Star Health’s failure to address legitimate grievances and its unfair practices leave us no choice but to act. We must safeguard patient interests and protect hospital financial viability.”
Member hospitals will continue treating Star Health patients on a self-pay basis, allowing them to seek post-discharge reimbursement. AHPI urges hospitals to support affected patients through alternative payment and reimbursement methods.
Dr. Gyani added, “We remain open to constructive engagement and hope for a positive resolution that benefits both patients and healthcare providers.”
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