AHPI has proceeded with its unilateral action, signalling a preference for disruption over collaboration to improve customer service and protect patient interests, alleged the GI Council
Mumbai: General Insurance Council(GI Council), the official representative body of general insurers. today announced its support to Star Health and Allied Insurance following the unilateral and unwarranted action taken by the Association of Healthcare Providers (India) (AHPI), threatening suspension of cashless services for policyholders.
The Council has urged AHPI to immediately withdraw its warning and engage constructively with insurers, ensuring uninterrupted cashless services for all policyholders.
Such arbitrary action prejudices the interests of policyholders and risks undermining trust in the health insurance ecosystem, said GI Council in a statement.
The Council had proactively scheduled a meeting with AHPI on September 2, 2025, to constructively resolve concerns. However, AHPI rescheduled the meeting to a future date yet to be confirmed.
Despite this, AHPI has proceeded with its unilateral action, signalling a preference for disruption over collaboration to improve customer service and protect patient interests, alleged the council.
“Tariff negotiations and billing practices are regular business activities between hospitals and insurers and should never be used to compromise patient care. Star Health policyholders will continue to have uninterrupted access to healthcare, ensuring their coverage remains fully protected. Any disruption in cashless services directly impacts families through higher upfront expenses and risks patient well-being in emergencies,” stated Council.
The (AHPI) on Friday issued a formal notice to Star Health Insurance against “unfair practices” and warned suspension of cashless services for its policyholders by hospitals.
In a statement, AHPI listed the persistent issues faced by member hospitals associated with Star Health.
These include “continued refusal to revise tariffs for several years in line with prevailing healthcare cost inflation, pressure to further reduce outdated tariffs, arbitrary withdrawal of cashless services, unjustified deductions from hospital bills, and claim rejections post final approval,” the statement said.
“Collectively, these practices have caused serious disservice and hardship to patients and their families,” it added.
AHPI pointed out that these issues may lead to compromised patient safety and quality of care by the member hospitals.
“Unless Star Health Insurance takes definitive steps to address the concerns expressed by member hospitals in a timely manner, AHPI and its member hospitals may be constrained to take appropriate action, including withdrawal of cashless services for the policyholders of Star Health Insurance, effective from September 22, 2025,” warned the association, representing over 15,000 hospitals and healthcare institutions across the country.
The health insurance industry has consistently invested in reforms to make quality healthcare accessible and affordable. Initiatives such as `Cashless Everywhere’ and the National Health Claims Exchange (NHCX) ensure seamless treatment for citizens nationwide.
The recent removal of GST on health insurance premiums has further strengthened financial protection for all policyholders.
The Council and the insurance industry remain committed to providing better services, a seamless customer experience, and reliable access to quality healthcare across India.