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Vidarbha Hospitals Association(VHA) has raised alarm against the ongoing cartelization of few insurance companies and their TPAs to browbeat the private hospitals to accept unjustified invalidated rate cutting. VHA has already initiated correspondence with Union Finance Minister, Competitions Commission of India(CCI), Insurance Regulatory and Development Authority of India(IRDA), General Insurance Council (GIC) and General Insurance Public Sector Association of India (GIPSA) highlighting the attempts of these companies to overrule IRDA & CCI guidelines.

MD India Health Insurance TPA , Genins India Insurance TPA, Family Health Plan TPA , Paramount Health Services & Insurance TPA, Health Insurance TPA of India , Health India TPA Services, National Insurance Company, United India Insurance Company and Oriental Insurance Company had recently de-empaneled some hospitals or were in process of de-empanelment at time of their renewal in a unilateral arbitrary manner as part of a deceitful strategy bypassing laid down norms; just for fact that the Cartel? functioning under name and insignia of Nagpur PPN Hospital empanelment committee? could not arm twist them to abide by an unviable rate list which was 50-80% less than the earlier ongoing agreement.

The concerned members of VHA had convened a meeting and have resolved to stand unitedly beside those hospitals to protect the interests of health insurance beneficiaries. They have further sought technical details on the indexes and validations applied for justifying the extensive tariff reductions proposed. Instead of such crude rate cutting, all hospitals looking at the increasing expenses even on all statutory heads were waiting for some thoughtful augmentations on existing rate tariff proportionate at least on national indexes as a way to thank the private health care service providers for the provided by them during Covid times.

Such kind of cartelization will result in poor quality and less choice for services for beneficiaries and is against the Competition Act, 2002. The health insurance beneficiaries should have been at liberty to choose their hospitals to avail quality health care. These companies are misleading and cheating their beneficiaries by forcing them to avail services in selected hospitals pointed out by Cartel? purely for sake of profits without giving any value to past service, feedback of beneficiaries, reputation, accreditations, quality, infrastructure and gradation etc.

Presently 20 hospitals under aegis of VHA have conveyed in writing to these companies to withdraw the unethical illegal decisions by 18th November and continue with the empanelment and cashless services of all the hospitals on existing rate tariff pending amicable settlement of this intricate and serious issue, failing which they will be forced to stop cashless services to their beneficiaries. Word is spreading like fire and soon all 160 VHA members will join in this united stand of stopping the privileges of cashless services to the beneficiaries of these insurance companies and TPAs, if their fair demands are not considered.

VHA has also conveyed their readiness to partake in any proceedings with these companies for contemplating rate tariff enhancements based on indexes and gradations as has been suggested by Union Government in other sectors.