Cashless vs reimbursement in a health plan pros and cons – New

When it comes to making a health insurance claim, there are a couple of paths that you can take. On one side of the coin is cashless claims, where you sit back and leave the burden of bill payment on your insurer. Your insurance company will settle the bill directly with the hospital. On the flip side is the reimbursement claim, where you pay the bills upfront and then ask for a refund. Different strokes for different folks! As a policyholder, you can choose any of the claim procedures!

Cashless claims are a comparatively new introduction in the insurance industry and have become quite popular. It’s more like swiping your card than opening your wallet for payment. So, let’s dive into the knowledge pool and check what makes these two claims different.

What is a reimbursement claim?

Let’s talk about the reimbursement claim first. As the name may suggest, a reimbursement claim is one where the health insured has to pay for all the medical treatment bills at the time of discharge. Simply put, you foot the bill upfront, out of your pocket. Then, you gather up those receipts and bills and send them off to your insurer. Let’s understand more about it.

Pros of reimbursement claims

A reimbursement is a bit of a hassle up front, but hey, at least you’re getting your money back in the end. Here are some pros you can expect:

It is a flexible option as the insured is free to choose a hospital of their preference
You can control the payment method. For instance, some credit cards may offer rewards and cashback on bill payments.

Note: With a reimbursement claim, you can seek medical treatments at any hospital of your choice, even if it is not in your insurer’s network.

Cons of reimbursement claims

Reimbursement claims have certain limitations, like:

If you are tight on funds, reimbursement claims can become tough since you have to pay all the bills at disbursal
Reimbursement claims involve hassle paperwork and take time to get approved and reimbursed