Cashless Facility Suspended
New Delhi
Niva Bupa Health Insurance on Monday announced the suspension of cashless treatment at Max Hospitals nationwide, affecting thousands of policyholders. Patients will now have to pay hospital bills upfront and claim reimbursement later.
Dr. Bhabhtosh Mishra, Director and COO of Niva Bupa, explained that the insurer’s agreement with Max Hospitals expired in May 2025. Efforts to revise premiums and renew the agreement did not yield a consensus, prompting the temporary halt in cashless services. He noted that other insurers, including Star Health and Care Health, are facing similar challenges with Max Hospitals.
The insurer said the decision came after “exhausting all other options,” citing administrative and process-related hurdles. Niva Bupa reassured customers that treatments at Max Hospitals can continue on a reimbursement basis and highlighted that its cashless facility remains active across over 10,000 partner hospitals nationwide. Max Hospitals has not yet responded to the developments.
This issue extends beyond Niva Bupa, with Bajaj Allianz General Insurance and Care Health policyholders also potentially losing cashless access at several hospitals from September 1, following concerns raised by the Association of Healthcare Providers (India) or AHPI. Conflicting reports suggest AHPI may have issued an advisory reversing the suspension, though no official confirmation has been provided.
The General Insurance Council criticised AHPI’s move, warning that abrupt disruptions in cashless services could force patients into large upfront payments, endanger lives in emergencies, and undermine trust in health insurance. With rising healthcare costs and the IRDAI pushing for 100% cashless treatment nationwide, such disputes highlight the growing challenges of ensuring accessible and affordable medical care in India.
