There are two ways in which health insurance companies pay for your hospital bills. Reimbursement is the traditional way, and the new method is Cashless.

The rate of diseases and critical illnesses is on a rise. To tackle the financial cost associated with it, we all opt for a health insurance policy, either from our workplace or from the open market and sometimes from both. But, is your policy cashless? It is vital to know before taking a health insurance policy if the cover it offers is reimbursement based or cashless.

What is reimbursement method?

In the reimbursement process, you have to keep funds ready in your savings account or as cash in your hands, so that it can be paid whenever asked for by the hospital authorities. After all the bills have been paid by you and you are discharged from the hospital, then you can approach your health insurance provider with the bills for them to reimburse the money to you.

This method can financially set you back for months. Also, if you do not have such liquidity to pay the medical fees by yourself at the time of an emergency medical situation, then your treatment gets delayed. You or your family members may have to borrow money from relatives for your treatment and promise to return it once the insurance company refunds you. All these can be quite a hassle.

What is the cashless method?

Cashless health insurance means if you had to be hospitalized, be it on an emergency basis or planned one, you do not have to pay for any bills.
Just follow the following steps:
  • Carry the card which the insurance company will provide you during the purchase of the policy
  • Go to the nearest network hospital
  • Present the card to the cashless desk
That’s it. You will not have to worry about your finances anymore. The hospital will send the bill to the insurance company in real-time. The insurance company will pay for all the bills as and when required, directly to the hospital.

Additional features of the cashless system

1. Pre and post hospitalization expenses
All the medical expenses from 30 days before a planned procedure and 60 days after you are discharged from the hospital will be covered.

2. Ambulance cover
If you require an ambulance to go to and return from the hospital, you will get a stipulated amount per trip from your insurance company.

3. Medical checkup and diagnostic test
Your health insurer gives you an allowance for annual or sometimes biannual medical check-ups as well.

Cashless health insurance is the only way to make sure that you get the medical attention you need, right when you need it. It is hassle-free and can be quickly executed, making it an effective tool for paying medical bills.

Click here to know more about Cashless health insurance.

* Terms & conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.