Here’s How a Cashless Health Insurance Policy Works

Having an insurance policy is critical in today’s times. Living without one is like throwing caution to the wind. You sure do not want to be that person. So why risk your entire life’s savings for unforeseen events like hospitalization. Being a matter of life and death, it is something that no sensible person will put off for a later date. This is when a health insurance policy is the best solution. It provides not only financial assistance in difficult times but also offers mental peace.

Health Insurance Policy

The insurer pays health insurance plans in one of two ways – reimbursement or cashless. You can purchase online health insurance plans for any of the two methods. Let us understand the differences between reimbursement versus cashless health insurance.

Payout: Under the reimbursement method, the payout is made only after the insured individual pays for hospitalization expenses. On the other hand, cashless health insurance claims are directly settled by the insurance company to the medical facility.

Comfort: You need not worry about arranging funds in cashless insurance plans, whereas a reimbursement policy requires you to repay the bills first and then make a claim from your insurance company.

Documentation: The reimbursement plan involves paperwork to submit invoices and copies of all medical reports for the treatment. Cashless insurance plans do not require you to submit these documents to the insurance company.

How does a cashless health insurance plan work?

Cashless health insurance cover is often synonymous with effortless insurance claims. If your health insurance plan has the facility of cashless insurance, you can avail yourself at any of the network hospitals. Network hospitals are those that have an affiliation with your insurance company and offer the benefits of cashless hospitalization. Note that the list of network hospitals is changed periodically, and it is advisable to visit the insurer’s website to know the updated network hospitals before your treatment.

What are the stages of the cashless insurance process?

  • To avail of the benefits of cashless insurance cover, you need to avail of treatment at a specified network hospital only. These network hospitals are mentioned in your policy document. Thus, it is crucial to compare health insurance plans and select a coverage policy for network hospitals in your locality.
  • Next, you need to fill a pre-authorization form mentioning the treatment you wish to seek. In case of emergency hospitalization, this step is skipped.
  • The next step is where the hospital sends the form for approval and processing either to the insurance company or third-party administrator, or TPA.
  • Once the approval is received, you can proceed to avail treatment.

All of the above procedures are fast-tracked in case of emergency hospitalization.

Although a health insurance plan is necessary, having a cashless plan helps you comfort. You need not earmark a specified amount of funds for such emergency hospitalization if your policy offers cashless features. Moreover, there is a reduced burden of documentation for the authenticity of your treatment cost. This way, take advantage of cashless health insurance that acts like an airbag when you’re in the driving seat of your life. Any unexpected financial stress can be ward off using a health insurance policy.

Janet Mason

Total internet practitioner. Organizer. Travel trailblazer. Tv junkie. Entrepreneur. Avid twitter nerd. Amateur coffee fanatic. Spent 2001-2006 promoting circus clowns in New York, NY. Was quite successful at getting my feet wet with shaving cream in Miami, FL. What gets me going now is exporting fried chicken in Las Vegas, NV. Enthusiastic about developing sausage in the government sector. At the moment I'm building foreign currency in Tampa, FL. Spent 2001-2008 lecturing about Easter candy in Fort Walton Beach, FL.

Read Previous

Risks Associated with ULIP Investment and How to Mitigate Them

Read Next

Know All About Hypothecation in Car Insurance