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The Basics of Cashless Health Insurance

Rising healthcare expenses have made it difficult for the average person to save enough money for high-quality treatment. This is where cashless health insurance comes into play. A cashless insurance plan allows an individual to access high-quality healthcare treatments without needing to pay anything out-of-purse.

In this informative blog, we will explain the basics of cashless health insurance. Continue reading.

Cashless Health Insurance: What Exactly Is It?

Cashless medical insurance, also known as mediclaim insurance, is basically the one in which the insured party’s medical bills are immediately reimbursed between the insurer and the network hospital. It offers cashless hospitalisation, meaning the insured party doesn’t have to spend cash to receive care. Nonetheless, cashless health insurance is only available in the insurer’s network hospitals.

Cashless health insurance plans enable the insured individual to easily cope with medical crises. It also permits them to concentrate only on treatment because the insurer covers the hospitalisation fees.

Cashless Health Insurance: Why is it the Need of the Hour?

Cashless medical insurance is essential when you are cash-strapped or don’t have instant access to finances during a medical emergency. It is intended to eliminate the need for monetary payments in order to obtain timely medical treatment and care. It also enables patients to receive high-quality medical care without worrying about how they will pay their hospital and associated medical expenses.

Listed below are some of the benefits of health insurance with cashless care facilities in the present day:

  • Cost-Effective: It helps you save quite a lot of money and keeps you from paying unneeded payments, making it cost-efficient.
  • Curbs Financial Burden: Well, a medical emergency might occur at any time. You do not have to bother about preparing finances in this circumstance because the payment is cashless.
  • Loads of Choices: Because cashless services provided in health insurance offer you a lot of choices to get your treatment done in reputable hospitals, you have a variety of options.
  • Offers Mental Satisfaction: It’s a more tranquil method of paying your medical expenditures. When you do not stress over medical bills, you have a lot more mental satisfaction.

Cashless Health Insurance: Types

In general, three types of cashless medical insurance are available in India:

  • Cashless Family Medical Insurance

The policyholder’s entire family can receive cashless care under this cashless family medical insurance coverage.

  • Cashless Senior Citizen Medical Insurance

It’s a medical insurance plan for people above the age of 60. It covers hospitalisation costs, ambulance fees, and pre-existing conditions, according to the policy’s terms and conditions.

  • Cashless Critical Illness Medical Insurance

Well, a cashless critical illness medical insurance coverage pays for treatment in cash for patients suffering from severe ailments like heart attack, cancer, and so on.

Cashless Health Insurance: How Does It Work?

Cashless health insurance eliminates the inconvenience of needing to pay cash at hospitals during an emergency. In the case of cashless health insurance, insurance carriers negotiate directly with hospitals in their network to pay for the service received by the insured person. They form alliances with these hospitals, which become known as the insurance company’s network hospitals.

When an insured individual is admitted to a network hospital, they are not required to clear the cost with the hospital during the time of discharge or release from the hospital. Instead, the insurer or the third-party administrator (TPA) will work directly with the hospital to arrange and pay the bill.

Furthermore, health insurance firms already provide cashless OPD services to their policyholders. It means that patients no longer need to be hospitalised for a minimum of 24 hours in order to get cashless hospitalisation services.

Types of Claim Made in a Cashless Health Insurance Policy

Essentially, there are two methods for obtaining cashless hospitalisation:

  • Planned Hospitalisation

When you know ahead of time that you will need to be hospitalised, this is referred to as planned hospitalisation. In this situation, you must select a network hospital to receive cashless treatments.

  • Emergency Hospitalisation

In the event of emergency hospitalisation, you require prompt medical treatment and should activate the cashless mediclaim facility within a day of admission.

The Bottom Line

One of the most obvious advantages of health insurance with a cashless feature is that you are relieved of the burden of organising funds during an already stressful time of the medical problem. So, do not hesitate before buying a health policy with cashless features since it’ll help you in times of need.

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