Health Insurance

Why Is Having Cashless Health Insurance Necessary?


A health insurance policy is essential for financially protecting yourself in a healthcare emergency. One of the benefits of health insurance is the cashless insurance facility. It’s because, when filing for an insurance claim, payments for medical treatment become more accessible with a cashless function.

The insured individual does not have to spend money using a cashless insurance facility; the hospital claim is reimbursed directly between the insurance company and the hospital. It helps reduce the insured individual’s financial burden at discharge because arranging funds that will be reimbursed later is not required. Getting the correct treatment is easy since the medical insurance company handles the payment directly if the treatment is performed at any network hospital identified by the health insurance provider.

Cashless Insurance for Health: What Exactly Is It?

Paying the needed medical bills and completing lengthy paperwork during a medical emergency is one of the problems we confront during hospitalisation. All of these inconveniences may be avoided by using cashless hospitalisation. It eliminates the trouble of reimbursement and the challenges of finding the cash to pay your medical costs.

Cashless health insurance allows you to pay medical costs straight to the hospital through the insurance company. To use this benefit, you must be hospitalised at one of the network hospitals designated by the insurance carrier and claim up to the sum covered.

Cashless Health Insurance: Features

The features of cashless health insurance are determined by the insurance providers and may differ between insurance firms and policies. However, the following are some of the essential characteristics included in the majority of cashless health insurance policies:

  • Policyholders are not required to pay any medical expenditures incurred at network hospitals.
  • Pre- and post-hospitalisation fees are covered.
  • Provides a no-claim bonus
  • Covers the costs of in-patient hospitalisation for more than 24 hours.

Cashless Health Insurance: Benefits

The following are some of the benefits of a cashless insurance facility:

Provides Financial Assistance for Medical Emergencies

Whether planned or unforeseen, hospitalisation drains your bank account if you don’t plan or have an emergency fund to cover it. Cashless health insurance plans are advantageous since it saves you and your family valuable time in arranging funds for hospital charges. Instead, simply produce your cashless health insurance card at a network facility to begin treatment.

Offers an Extensive Range of Coverage

Cashless mediclaim insurance covers pre- and post-hospitalization expenditures, ambulance charges, in-patient care, domiciliary therapy, and so on. Some cashless health insurance policies also provide free annual health checks and diagnostic testing.

A Source of Solace

Cashless hospitalisation ensures you won’t have to be concerned about funds in a medical emergency. You can be admitted to the hospital and begin treatment without worrying about finances. You may concentrate exclusively on medical treatment and rehabilitation without worrying about money.

Protects Your Health when Travelling

Access to appropriate medical treatment might be a worry while travelling. In such instances,  cashless health insurance coverage allows you to receive dependable healthcare services at a network hospital without worrying about hospitalisation and medical fees. You only need to bring your medical card to obtain medical services at a network hospital anywhere in the country.

Income Tax Benefit

The premiums paid for cashless health insurance policies are eligible for tax advantages under the 1961 Income Tax Act (Section 80D), with those under 60 years of age receiving a tax benefit of up to ₹25,000 and senior citizens receiving a tax benefit of a maximum of ₹50,000.

Cashless Insurance: How Does It Work?

It is simple and convenient to obtain cashless insurance. The policyholder must ensure the treatment is received in one of the insurance company’s network hospitals. These network hospitals have a contract with the insurance company to provide cashless care.

The insurance company’s personnel coordinate the invoicing and other procedures in order to validate the policyholder’s claims. In other words, once the insurance company officials verify the policyholder’s eligibility for cashless treatments, the hospital receives clearance to treat the patient.

Claim Types in a Cashless Insurance Policy

The following are the types of claims that may be made in a cashless insurance plan:

Planned Claim: Use this if you know of a planned hospitalisation at least two to three days in advance. In this instance, you must complete the pre-authorization form before being admitted to the hospital. These are forwarded to the insurer, who will approve or deny the claim.

Emergency Claim: If you have a medical emergency, such as an accident, serious sickness, or ailment, you can still claim your insurance. In the event of an emergency, the insurer must be alerted as soon as possible regarding the ongoing treatment. According to the protocol, the insurance is meant to handle the claim within six hours.

Things to Keep in Mind when Availing of Cashless Health Insurance

Consider the following points when you are availing of cashless health insurance:

Instruct your family members to call or notify the insurance provider immediately in emergency hospitalisation.

Bring original ID evidence with you to the hospital.

Submit to the insurance the necessary inquiry and medical reports.

In the recommended format, submit comprehensive information about your insurance carrier.

Wrapping Up

A cashless health insurance gives you the assurance and confidence to bring your loved ones to the hospital to get the best treatment. When an insured person has this truest that a huge medical expense will not befall him, he will have one less thing to worry about in the hour of anxiety and agony.

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