Why do Cashless Health Plans work better?

This happened a few years back. Dilip, a professional had to be hospitalized for health issues. The best part of the story is- he was covered under a suitable health plan, so was financially protected, though, at the time he had to pay from his pocket. A twist in the story came when he spent his limited energies and valuable time after the illness in getting the reimbursement for his claim. How he wished for some magic to happen and hospital costs to automatically return to his empty pockets!

Today, this magic is here in the form of cashless hospitalization feature in your health Insurance plan.

We, as an intelligent lot of Indians, are known to be hardworking, responsible and smart people across the globe. And, health insurance further helps us in taking these very-much Indian values ahead when we progress as a country.

Most of the health insurance plans nowadays carry the cashless feature because of the obvious benefits-

  • The Convenience of cashless transaction
  • Access to the best hospitals for timely and hassle-free medical assistance

Thus, going cashless is one of the most effective advances in the health Insurance domain- for the users as well as the insurance companies alike.

So, how does cashless hospitalization work?

  • As the name suggests, with cashless hospitalization, the insured does not have to pay the hospital charges upfront for the illnesses covered in his policy. Thus, he does not have to worry about making cash flow arrangements for the expenses. 
  • Cashless feature always works exclusively with a set of hospitals called as ‘Network Hospitals’. Network Hospitals are those organisations which work in coordination with the given Insurance Company through a pre-signed agreement. The insurance company pays directly to the hospital without much interference of the insurance holder. He just needs to produce his Insurance policy card for authentication.
  • All the paperwork, procedures and formalities required by the insurance company are completed by the hospital. The policyholder’s liability is limited to paying the co-pay amount and charges for services not covered under the policy.Thus, the policyholder is relieved of the effort and stress he would otherwise have to undergo in cases where he would be required to settle the claim himself after the treatment.
  • You can buy cashless health Insurance plan for an Individual, family floater or senior citizen.
  • If the hospitalization is a planned event one needs to contact the preferred network hospital a few days prior and start the process of availing the medical services through his health Insurance policy. While in case of emergency, cashless feature
  • Helps the insured by speeding up the process of getting the required medical assistance, provided he gets admitted to the listed network hospital.

What are the things to remember while using cashless hospitalization feature?

  • The first thing to remember! One should always go to the hospital mentioned in the list of network hospitals given by your health insurance company for the cashless feature to work.
  • There could be a situation when your claim gets rejected! This might happen due to incomplete information on the documents provided by the hospital for claim processing. So, be careful and make sure to fill-in every detail as advised by the hospital administration.
  • Always read your plan carefully!Always be informed about the costs that are not covered under your plan. This will help you and your care-takers to manage the hospitalization better.
  • Co-Pay amount clause! Some plans may require the insured to make slightly higher co-pay contributions in case the insured opts for cashless facility.

These were a few important pointers about cashless hospitalization health plans.

It is little surprising, as it is sad, to note that Indian masses have not yet completely woken up to the fact that Insurance is the smartest way to manage health expenses.Its time India realizes the underlying equation- More the number of people buying insurance, less will be the individual buying costs involved.

Please feel free to call Quickinsure, in case, you have any doubts or queries regarding any Insurance Policy. Our relationship officers will guide you to a suitable Insurance Plan.

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