Ahmedabad-based hospitals and nursing homes will indefinitely suspend cashless services for policyholders of Star Health & Allied Insurance Co Ltd, Care Health Insurance, and Tata AIG Health Insurance starting the 2nd of April, 2025. The decision follows ongoing disputes over low reimbursement rates, unjustified deductions, and the exclusion of hospitals without due process.

The Ahmedabad Hospitals and Nursing Homes Association (AHNA) stated that despite multiple discussions, these issues remain unresolved, affecting both patients and healthcare providers. "Despite repeated assurances and negotiations, these companies have persisted with their unfair practices, adversely impacting both patients and healthcare providers," AHNA said in a statement.

Citing data from the 2023-24 annual report of the Council of Insurance Ombudsman, AHNA highlighted that Ahmedabad ranked third in the country for health insurance-related complaints, following Mumbai and Pune, with 3,300 grievances recorded last year.

AHNA is also exploring cashless payment alternatives for affected patients, though these may not extend to Star Health policyholders due to the severity of concerns raised.