AHPI alleges insurers' body using anti-competitive tactics to push down hospital tariffs

The Association of Healthcare Providers of India (AHPI) voiced concern that the general insurers’ body is using anti-competitive steps to push down hospital tariffs, citing the proposed GIC-led common empanelment process and sudden suspension of cashless services as pressure tactics that lack legal backing.

In a statement to media AHPI said, “the proposed GIC-led common empanelment process and abrupt stoppage of cashless services to pressurise AHPI member hospitals in lowering tariffs which it viewed as anti-competitive and lacking a sound legal basis.”

The comment from AHPI follows a rift that has emerged between General Insurance Council and AHPI early this week over latter warning it would suspend cashless facilities for the policyholders of Bajaj Allianz from September 1.

AHPI – which has over 20000 hospitals under its network- claimed that Bajaj Allianz General has not updated reimbursement rates in years though medical inflation in India has been climbing at 7–8% annually.

Senior officials of Bajaj Allianz and AHPI met today to resolve the matter. During the meeting, the two parties talked about insurers committing to revision of rates, doing away with unexpected deductions for member hospitals and resolving disputes related to new medical technologies like robotics and new age cancer drugs.

The association also stated that insurance companies must immediately restore cashless services at the AHPI member hospitals “as this is causing undue suffering to patients and the hospitals are facing irate patients who are unable to access cashless services at hospitals of their choice.”

Bajaj Allianz officials are expected to meet members of the General Insurance Council (GIC) of India on September 2, according to people in the know.

If cashless service is suspended, policyholders of Bajaj Allianz General Insurance will have to pay for any medical or hospitalisation-related expenses upfront and later claim reimbursements from the insurer.

A similar notice was also sent to CARE Health Insurance formerly known as Religare Health Insurance, with AHPI seeking a response by August 31, 2025.