Care Health Insurance Policyholders Face Trouble as Cashless Treatment Suspended at Telangana Hospitals

Care Health Insurance policyholders have been hit by a major setback as the Telangana Specialty Hospitals Association (TSHA) has announced the suspension of cashless treatment services at its member hospitals. The association cited several concerns, including delays in claim settlements, unexplained deductions from approved claims, rejection of claims without proper reasons and removal of hospitals from the insurer's network without prior notice. TSHA stated that it had repeatedly attempted to raise these issues with the insurance company's senior management but had not received a satisfactory response. Patients may now have to pay their hospital bills upfront and subsequently apply for reimbursement. The association has indicated that cashless services could be restored if the insurer comes forward for discussions and resolves the issues.

The decision could place a considerable financial burden on patients, particularly families who depend on cashless insurance facilities to manage expensive medical treatment. It may also affect patients travelling from Andhra Pradesh to Hyderabad for treatment at corporate hospitals. The report also points out that IRDAI imposed a penalty of ₹1 crore on Care Health Insurance in December 2025 over alleged lapses in claim handling, disclosure of hospital discounts and communication of claim deductions. Policyholders facing unfair claim deductions or rejections can approach the Insurance Ombudsman in Hyderabad to seek redressal. Patients should also confirm cashless facility availability with their chosen hospital and insurer before admission.