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What is Cashless Health Insurance and How Does It Work?

For the sake of safeguarding your cash in the event of a medical emergency, you must get health insurance. And to ensure a hassle-free process, buying a health insurance plan with a cashless facility is more beneficial. This is because they provide immediate access to funds, and the settlement process is quite easy and simple.

The claim under cashless health insurance is resolved directly between the hospital and the insurance company. This helps decrease the financial burden on the insured. Also, the need to carry cash is eliminated. The process gets more simplified when undergoing treatment at network hospitals designated by the insurance company as they handle the payments internally by themselves.

What Is the Process for Cashless Health Insurance?

Cashless insurance is simple and practical. Firstly, the policyholder must ensure the treatment is completed in one of the insurance company’s network hospitals. Here, the network hospital contacts the insurance provider to coordinate billing and other formalities to validate the policyholder’s claims.

Once the insurance company officials have verified the claim, the policyholder becomes eligible for cashless treatments. Then the hospital is given the go-ahead to treat the patient.

Considerations Before Selecting a Cashless Health Insurance Plan

  • Network Hospitals List: Always look at the network hospitals with which the insurance provider has partnered before buying. The list will contain the hospitals in the area you live in, allowing you to access cashless treatment in case of a medical emergency immediately.
  • Sum Insured Coverage: The cashless health insurance policy sum insured coverage must be sufficient to protect you and your family in case of a medical emergency.
  • Co-payment and Other Sub-Limits: Pay close attention to any co-payment and other sub-limit provisions. The percentage of the claim that the policyholder must pay is a co-payment. At the same time, the sub-limit is the amount that the insurance company will contribute to the claim.
  • Waiting Period: Recall that any illness or treatment will only be provided without payment if it does not come under the waiting period. 
  • Daycare processes: A lot of daycare processes are covered by cashless policies. 

Advantages of Cashless Health Insurance:

Now that you have learned how cashless health insurance works, allow us to share the other benefits you can take advantage of.

  • Access to Quick Care: If you have a cashless healthcare system, obtaining immediate treatment and care without worrying about hospital costs is incredibly simple. Notify the hospital’s help desk within 24 hours of an emergency and within 48 hours in case of a planned hospitalisation.
  • Benefits in Total: A cashless insurance plan offers many benefits. This includes the payment of medical bills, complete ambulance expense coverage, and more.
  • Obtain Coverage While Traveling: Medical problems can also occur while traveling. However, if you have cashless insurance, you can easily access medical care at any nationwide hospital in the network.
  • Tax Savings: You may also be eligible for tax savings because Section 80D of the Income Tax Act 1981 exempts the premiums paid for cashless health insurance policies. 

You May Like to Read: Advantages of Mediclaim Insurance

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