The Telangana Specialty Hospitals Association has suspended cashless treatment services for Care Health Insurance policyholders, citing claim settlement disputes and poor communication. Affected patients must now pay hospital expenses upfront and seek reimbursement until the issue is resolved.
Published Date – 27 July 2026, 04:22 PM
Hyderabad: The Telangana Specialty Hospitals Association (TSHA) has suspended cashless treatment services for Care Health Insurance policyholders, highlighting growing friction between healthcare providers and insurers.
In a statement in Hyderabad on Monday, TSHA said that it has already notified Care Health Insurance that its member hospitals will halt cashless services immediately.
The TSHA in the statement alleged persistent issues, including arbitrary claim deductions, unjust repudiations, settlement delays, unilateral de-empanelments, and a lack of responsive communication, as the reasons for suspension of cashless treatment.
While patients in Telangana face immediate disruption, as they now have to pay cash upfront followed by reimbursement, the development highlights deeper systemic issues around claims management and provider relations.
With services halted, policyholders at TSHA member facilities must cover bills directly before filing reimbursement claims under policy terms. For families needing high-cost procedures, this development could possibly create financial strain.
The TSHA indicated that it remains open to talks if Care Health Insurance takes meaningful corrective action, signaling the move aims to force institutional dialogue rather than permanently sever ties.
