There are folks who can easily find the money to splurge on the most luxurious things that life has to bestow. Nevertheless, there are quite a few people who cannot even afford basic necessities of life. For such people, spending on anything becomes a nightmare. There is also a major chunk of society that earns enough to live happily, but cannot spend a lot on any frills. Although people earn money, it is not enough to be able to cope with medical care expenses. Healthcare costs are rising with every new treatment. Life threatening problems now have a cure, but they are costly.
A lot of people save money to be able to deal with these costs. One can argue that there are insurance plans that would enable customers to deal with such expenses, but it is not always the case. Sometimes, even with health insurance they first need to pay for the medical care and then get the treatment they can. The idea of cashless treatment is still nascent and therefore most people do not understand the value of it.
In the traditional way health insurance worked, one could get a treatment, pay for it, and then fill and submit the reimbursement forms to the insurance provider. The claim would then be processed in accordance with the insurance policy’s norms. By this procedure, policy holders had to first pay for the treatment and then would get the reimbursement. The financial burden on the family was not completely put at rest. One still had to make certain that there is sufficient money for the family to sustain the bills.
The cost of medical care is not going to reduce anytime soon. This means that people will have to keep setting aside money for healthcare. To resolve this problem, the concept of cashless treatment was introduced. The idea behind health insurance is that people should be able to get the best quality treatment without any financial worries. This is exactly what cashless medical care does.
People do not have to keep aside funds for the treatment. The health insurance policy would pay the bill. Nonetheless, this benefit is only applicable in network hospitals. In non-network hospitals one still has to avail benefits on a reimbursement basis. Many people in the country now understand the benefits of cashless hospitalization.
Cashless hospitalization works on the basis of networking between hospitals and either the insurance provider or the TPA (third party administrator). Insured patients have to fill up certain forms and submit them at the time of hospitalization. The hospital and the insurance provider then settle the payment (according to policy terms and conditions) without involving the policy holder.
In some cases, to make the time of hospitalization smoother, people can actually get pre-authorization. This means that the policy holder can cross check and get permission for the date and time of the surgery, so that when they actually have to be hospitalized, they need not bother with the finances at all.
Policy holders should choose whichever mode of payment is better suited to them. There may be people who prefer the non-network hospitals and therefore would rather pay first and then get the treatment later. The choice is yours!