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Insurers’ Council Urges AHPI to Withdraw Threat to Halt Star Health Cashless Care on Sept. 22

Star Health denies any cashless suspensions, promising pre-payment of claims if arrangements collapse.

Overview

  • AHPI warned its 15,000-plus member hospitals could stop cashless treatment for Star Health policyholders from September 22 unless long-running grievances are addressed.
  • Member hospitals cite refusal to update tariffs, unjustified deductions, claim rejections after approval, and abrupt withdrawal of cashless tie-ups as the core issues.
  • The General Insurance Council opposed AHPI’s move, called for talks to resume, and cautioned that suspensions would burden patients with upfront hospital payments.
  • The council said a mediation meeting set for September 2 was postponed by AHPI, while Star Health maintained it has received no suspension notices and pledged to ensure claim settlement even if cashless fails.
  • AHPI referenced Ombudsman data showing Star Health led FY24 complaints at 13,308—over 10,000 tied to claim rejections—and noted a recent advisory against Bajaj Allianz was withdrawn after negotiations.