Responding to news reports on The Association of Healthcare Providers – India (AHPI)’s warning that cashless services for Star Health policyholders will be withdrawn from 22 September 2025 unless the insurer addresses concerns, Star Health Insurance responded denying that any network hospitals had suspended cashless services.
In a statement the insurer said, “We have not received any case of cashless suspension from our network partners with whom we have 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.”
Supporting Star Health’s stance, the General Insurance Council (GIC) in its statement said AHPI’s unilateral and unwarranted action threatens suspension of cashless services, prejudices policyholder interests, and risks undermining trust in the health insurance ecosystem. The Council stated it had proactively scheduled a meeting with AHPI on September 2, 2025, to resolve concerns, which AHPI rescheduled without confirmation of a new date, but still proceeded with its warning. It emphasised that tariff negotiations and billing practices are routine business activities that should not compromise patient care, and assured uninterrupted healthcare access for Star Health policyholders.
The Council further pointed out that any disruption in cashless services would directly burden families with higher upfront expenses and risk patient well-being in emergencies. It highlighted industry-wide reforms such as Cashless Everywhere and the National Health Claims Exchange (NHCX), along with the GST exemption on health insurance premiums, as measures that strengthen financial protection for policyholders.
The Council urged AHPI to immediately withdraw its warning and engage constructively with insurers to ensure uninterrupted cashless services.
AHPI, which represents more than 15,000 hospitals and healthcare institutions, had said in its press release that the grievances include a continued refusal to revise tariffs in line with healthcare cost inflation, pressure to further reduce outdated tariffs, arbitrary withdrawal of cashless services, unexplained deductions from hospital bills and claim rejections after final approval. The association said such practices may lead to compromised patient safety and quality of care. (https://www.expresshealthcare.in/news/ahpi-issues-notice-to-star-health-insurance-warns-of-suspension-of-cashless-services-from-september-22-2025/450709/)