New Delhi, Sep 12 The Association of Healthcare Providers – India (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to revise tariffs for several years in line with prevailing healthcare cost inflation, pressure to further reduce outdated tariffs, arbitrary withdrawal of cashless services, unjustified deductions from hospital bills, and claim rejections post final approval,” the statement said.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 decision follows repeated complaints from member hospitals about the questionable practices.
In addition, the Insurance Ombudsman Annual Report 2023-24 corroborates the systemic malpractice of Star Health Insurance, which topped the list with over 13,300 complaints in FY24, over 10,000 of which related to partial or full claim rejections -- a number exceeding the combined complaints against the next four largest health insurers.
“The systemic failure of Star Health Insurance to address legitimate grievances, combined with their unfair practices, leaves us with no choice but to take appropriate action. Our primary responsibility is to safeguard the interests of both patients and healthcare providers. No insurer should be allowed to jeopardise patient care or undermine the financial viability of hospitals for commercial gain,” said Dr. Girdhar Gyani, Director General at AHPI.
Member hospitals shall continue to provide treatment to patients with policies from Star Insurance Company at self-pay rates, who shall seek reimbursement from their insurer on a post-discharge basis.
AHPI strongly urges member hospitals to continue supporting affected patients by facilitating access to care via alternate payment and reimbursement channels. AHPI and its members reiterate their commitment to partnering with insurers to ensure affordable, accessible, and high-quality healthcare for all.
“We remain open to constructive engagement and look forward to a positive resolution in the best interests of patients and healthcare providers alike," added Dr. Gyani.
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