Is cashless health insurance an option for your employee health cover


This guide outlines what cashless health insurance is, and its potential for employee health cover, particularly if you are setting up remote teams in other countries.

Life always has the habit of keeping us on our toes with sudden turns. The pandemic has been a much-needed wake-up call for everyone. People are beginning to recognise the importance of health insurance, and the number of new policyholders has gone up. A sudden medical expense can be stressful and even impossible to manage. However, a cashless health insurance facility helps consumers to handle these situations in a hassle-free manner. Moreover, it can assist consumers in receiving quality healthcare services without upfront bill payments.

What is a cashless health insurance facility?

A cashless health insurance facility is a feature that allows insurance companies to settle hospital bills directly. This saves the policyholders from the hassle of arranging funds and undertaking a reimbursement process. A fair percentage of consumers seek medical insurance as a means to handle challenging situations. Cashless health insurance would fulfil this particular purpose.

Why choose this facility?

  • Avoid unnecessary financial stress during this period
  • Prevents debts and other third party loans
  • Secures saving that can be used for future endeavours
  • Minimal documentation process
  • Lower approval related stress

Cashless health insurance systems could vary based on the company. However, major companies do offer the above benefits. Consumers should discuss this information in detail with their insurance representatives. This system would offer to provide comprehensive coverage similar to the reimbursement model. However, it is essential to understand the regulations levied by the company. The policyholders should choose a hospital from the list of empanelled units.

This feature is applicable only in these health care centres. Another essential factor is that policyholders should verify if a particular treatment plan would be covered under the plan. There is always the potentiality that insurance companies tend to enter a partial contract with hospitals. Consumers can always choose a reliable insurance company such as Care Health Insurance, with over 8000 network hospitals. This would be highly beneficial during times of emergency.

Claim Procedure 

Unlike the reimbursement model, the cashless facility operates on a pre-authorisation model. First, the policyholders will have to complete the forms and submit them with the necessary documentation. Then, the insurance team would validate the claim and send a response. The claim management team could also raise queries for the hospital regarding the elements in the bill. Since there is a possibility of rejection, it is advisable to start the process well in advance.

Nevertheless, insurance companies do consider medical emergencies such as accidents or severe illness. In these cases, the cashless health insurance insurance companies do consider medical emergencies such as accidents or severe illness. In these cases, the cashless health insurance could be approved within 6 hours.

Points to remember/prepare

Medical emergencies can occur abruptly and without warning. It is imperative to take necessary precautions

  • Always educate family members and close friends about the nature of the insurance policy

  • Have the pre-authorization docket ready to expedite the process

  • Choose an empanelled hospital to avail cashless health insurance<settlement

  • Carry the original ID proof and Insurance card of the primary policyholder at the time of hospitalization

  • Know about the exclusion factors

  • Make backup plans to handle any delays in claim approval

A cashless health insurance feature would protect the family from financial trauma. Always read the rules and regulations carefully to avail the full benefits of the policy. This has become a preferred model because, as of November 2019, 43% of health care providers have processed 51-75% of cashless claims transactions. It is no surprise that cashless health insurance has become a go-to option for policy buyers since it offers a hassle-free and quick way to deal with medical emergencies. Therefore it is advisable to get cashless health insurance in order to stay adequately prepared against life’s uncertainties.

Benefits of providing employee health cover

1. You would be able to attract and retain good quality employees

Just as you are looking for the best employees, your employees are also looking for great employers. They want employers who make the work worthwhile by providing them with extra benefits. If you don’t want to lose your best employees to competitors, think about how to offer them some extra incentives like health insurance.

2. You would get tax savings

What you spend on getting insurance for your employees can be deducted as a pre-tax business expense, which means getting health insurance for your employees and paying less tax.

3. Have a healthier workforce

Health insurance makes it cheaper for people to get treatments. It also encourages people to get preventive health care. .

4. Spend less money

Buying health insurance for a group of people is much cheaper than buying it individually. You can take advantage of this to provide health insurance to your workers at a cheaper price compared to buying individually, which would be more expensive for them.

5. Increase team productivity

One of the things employees look for in a good company is employee welfare and benefits, for which health insurance tops the list. You can encourage your employees to serve you better by providing them with health insurance. And since their families are covered too, they would have a more balanced work life with the tranquility at home.

6. Less absenteeism

One of the main reasons employees miss work is illness and when employees don’t come to work it creates a gap that can be difficult to fill. Work is not going well and many things can go wrong. However, you can prevent these cases by ensuring that they are being treated well through health insurance. Do you know what they say about prevention?

7. Boost your company’s image

How your employees see your company is very important to your business. I’ve seen cases where employees of an organization hid under the cover of the Internet to criticize their companies and ruin the image of their employers just because they were dissatisfied with their current working conditions.

8. Fewer cases of injured workers

One of the main things workers complain about when they protest or go on strike is the low welfare of the staff. By providing them with adequate health benefits, you would successfully eliminate some of the things your employees might complain about in the future.

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