Is Star Health Insurance Engaging in Unfair Practices?

New Delhi, Sep 12 (NationPress) The Association of Healthcare Providers – India (AHPI) has formally addressed a notice to Star Health Insurance over allegations of “unfair practices”, cautioning that cashless services for its policyholders might be suspended by hospitals.

In their statement, AHPI enumerated the ongoing challenges faced by member hospitals linked with Star Health.

These challenges encompass “persistent refusal to adjust tariffs for several years in accordance with rising healthcare cost inflation, undue pressure to lower outdated tariffs, arbitrary cessation of cashless services, unwarranted deductions from hospital bills, and claim rejections even after final approval,” as stated.

“These actions collectively have inflicted significant hardship on patients and their families,” it further stated.

AHPI highlighted that such issues could jeopardize patient safety and the quality of care provided by member hospitals.

“If Star Health Insurance does not take prompt and decisive action to resolve the concerns raised by member hospitals, AHPI and its hospitals may have no option but to pursue necessary measures, including the withdrawal of cashless services for Star Health Insurance policyholders, starting from September 22, 2025,” the association, which represents over 15,000 healthcare institutions nationwide, warned.

This decision comes on the heels of continual complaints from member hospitals regarding questionable practices.

Moreover, the Insurance Ombudsman Annual Report 2023-24 verifies the systemic malpractice of Star Health Insurance, which received over 13,300 complaints in FY24, with more than 10,000 concerning partial or full claim rejections—a figure surpassing the combined complaints against the next four largest health insurers.

“The ongoing failure of Star Health Insurance to address valid grievances, alongside their unfair practices, compels us to take suitable action. Our foremost duty is to protect the interests of both patients and healthcare providers. No insurer should be permitted to compromise patient care or threaten the financial stability of hospitals for profit,” stated Dr. Girdhar Gyani, Director General at AHPI.

Member hospitals will continue to treat patients holding policies from Star Insurance Company at self-pay rates, allowing them to seek reimbursement from their insurer post-discharge.

AHPI strongly encourages member hospitals to persist in aiding affected patients by providing access to care through alternative payment and reimbursement channels. AHPI and its members reaffirm their dedication to collaborating with insurers to ensure that healthcare remains affordable, accessible, and high-quality for everyone.

“We are open to constructive discussions and aspire for a favorable resolution that benefits both patients and healthcare providers,” added Dr. Gyani.