Explain Network Hospitals in Health Insurance
Updated On Nov 25, 2020
Health Insurance is an insurance product which covers all the medical expenses that can come under it, like doctor’s consultation fees, surgery, required medicines, hospitalization costs, pre-hospitalisation, and post-hospitalization health care. These expenses are either reimbursed to the policyholder, or they are provided to the caregiver of the policyholder in circumstances where the individual is unable to collect it themselves.
Network hospitals are hospitals that have tie-ups with Health Insurance companies. These hospitals provide cashless hospitalization to the policyholders as part of their deal. Having an insurance policy with these types of network hospitals associated with them serves as a great advantage to the individuals. Health Insurance companies offer a range of network hospitals, also known as the hospital list. This list contains all the hospitals associated with the insurance company and makes it easier for the people to decide which hospital they would frequent when they require to do so.
Advantages of Network Hospitals
There are many aspects of network hospitals but some of the advantages of network hospitals in health insurance include:
1. Cashless Claims: A consumer can claim insurance through a cashless claim. Cashless claims come into action when the insured individual alerts the insurance company that they have incurred medical expenses. The company then connects with the hospital directly and takes care of the medical expenses directly with the hospital. Cashless claims can be possible only if the individual alerts the insurance company of his condition immediately after hospitalization.
2. Easy Choice: As the insurance companies already offer network hospitals, there is no issue in choosing the hospital at the time of hospitalization as the insurance policyholder would have already frequented the hospital for routine check-ups and prescription refills for their medicine.
3. Hassle-Free Experience: Having the availability of network hospitals makes the entire hospitalization process hassle-free and easy. The insurance company would not cite any problems with claims as the patient would have been seeking medical care at the hospital, which would be accepted by the Health Insurance company.
What are Non-Network Hospitals?
Non-network hospitals offer medical services, but when the time comes to pay the bill, the patient would have to pay out of their pocket. These would be huge expenses and would make it difficult for the patient to bear the expenses on their own. They would, of course, be able to claim reimbursement from the insurance company, but would not have the guarantee that all of the out-of-pocket expenses would be covered by the insurance company. Hence, it makes it more responsible and advisable for people to purchase an Insurance policy with associated network hospitals.
Also Read: Cashless Mediclaim Policy
Conclusion
The network hospitals act as a great added feature to an insurance policy as they would make the process of cashless claims much more simple and easier. This makes choosing the right policy integral to have a protected and insured life for the consumer.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
