Daybreak The rivalry between hospitals and insurers will always be heated
7 snips
Jan 25, 2026 A deep dive into the clash between hospitals and insurers in India and why cashless care is breaking down. Shortages in updated reimbursement rates and rising medical costs are crippling smaller hospitals. Financial strains and internal inefficiencies at insurers are worsening the dispute. Attempts at standardization and temporary compromises are explored as millions face sudden out-of-pocket bills.
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Policyholders Left At The Counter
- A person hands over their cashless insurance card after surgery and the hospital says cashless is suspended.
- Millions of Indians face the same shock when hospitals and insurers cut each other off, forcing out-of-pocket payments.
A Power Struggle Between Giants
- Major hospitals and insurers have repeatedly suspended cashless services in recent months.
- Each side blames the other over rates and billing, leaving 550 million policyholders uncertain.
Outdated Rates Versus Rising Costs
- Many smaller hospitals still work with insurance rates unchanged since 2011 while surgery costs have tripled since 2016.
- Hospitals claim slim profits reinvested into tech and say they need higher tariffs to survive.