How Does Cashless Insurance Plan Work?

We all aim to make investments to increase the valuation of our assets. And one such investment is buying a health insurance policy for us and our loved ones. This investment will not give you a huge amount of money on its maturity but you can be free from any worry especially in a situation when you are hospitalized or have to undergo expensive treatment.

What is Health Insurance?

Health insurance is an insurance product which an individual buys to avail some facilities. You as a policyholder will have to pay premiums when you buy one such policy. If you get hospitalized within the tenure of the policy, you do not have to worry about the hospital bills. The insurance company from which you have bought the insurance plan will be taking care of it.

What is now even better is the option for cashless health insurance. The cashless facility enables the policyholders to not spend any cash while getting their treatment at the hospital. The hospital bills are settled between the insurance company and the hospital. This further lessens the financial burden on the policyholder during getting discharged from the hospital, since there is no need for arranging for cash which can be reimbursed later. This helps a lot in getting the right treatment since the responsibility of taking care of the payments is taken by the insurer. However, all of this is only possible if the treatment is done at the network hospital.

Steps of Availing Cashless Insurance

To avail of the facilities that come with cashless insurance, you need to follow some of the steps. A few of them include:

  • Selecting a network hospital from the huge list that will be provided to you by the insurance company
  • You have to inform the insurer and to do so, you have to fill up the pre-authorization form that you will find at the TPA desk in the hospital
  • If there is an emergency, you must inform the insurer within 24 hours of admission to the hospital; and in case of planned hospitalization, you can inform the insurance company 48 hours before you get hospitalized
  • You have to submit the properly filled as well as signed form to the representative associated with the insurance company, along with important medical papers, policy documents, identity proof, etc.
  • Once the documents have been sent by the representative to the office of the insurer, approval will be received to start the cashless treatment
  • The settlement of the bills will be done only after the insurer approves each of the documents. In a situation when the cashless treatment is rejected, you will get the chance to file for reimbursement after the treatment is done.

 

Advantages of Buying Cashless Health Insurance

By buying a cashless health insurance plan, you can get a heap of benefits. Some of them are mentioned herein below:

  • As you purchase a cashless health insurance plan, you get the benefit of immediate treatment in a network hospital. You just have to inform the insurer at the earliest after you are admitted to the hospital and once you are discharged.
  • While you are being registered at a network hospital, many quality checks will take place. This helps in making sure that you receive good treatment at a reputed network hospital. You also get advice from doctors before your treatment without paying any fee for it.
  • While you are making a cashless claim, the documents that you have to submit are way lesser than the ones that you would need to submit in case of a reimbursement claim. One of the main reasons for this is that the bills are settled between the hospital and the insurance company.
  • The cashless health insurance premiums you pay are exempted from taxes under Section 80D of the Income Tax Act.

Now if you want to take a look at the various cashless health insurance plans available, you can visit the IIFL website. You will also be able to compare them and then make a sound decision.

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