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Hospitals Ordered To Honor All Cash-Less Claims, They Cannot Deny It; Action Will Be Taken

Hospitals Ordered To Honor All Cash-Less Claims, They Cannot Deny It; Action Will Be Taken
Hospitals Ordered To Honor All Cash-Less Claims, They Cannot Deny It; Action Will Be Taken

The Insurance

Regulatory Authority of India (IRDAI) has reiterated its policy, and

issued a circular on Tuesday, aiming towards hospital authorities and

healthcare providers.


There have been numerous complaints that hospitals are not

allowing cashless claims offered by insurance companies.


Let’s understand this topic in detailed.


Hospitals Denying Cashless Claims


It has come to the insurance regulatory body, the Insurance Regulatory Authority of India

(IRDAI)’s notice that hospitals are not granting cashless facility for

treatment of Covid-19 despite such arrangements with the insurers.


It is also brought to the

notice of the Authority that some of these hospitals are also demanding cash

deposits from the policyholders.


IRDAI, on Tuesday, has

reported that according to 31 (d) of IRDAI (Health insurance) Regulations,

2016, general and health insurance companies are expected to enter into

agreements with enough number of public and private sector healthcare providers

across the geographical spread.


With private hospitals claiming their hands are tied, family

members have had to frantically arrange large sums of cash at short notice.


What is the New Circular Issued by IRDAI


In accordance to the current distress faced by patients and

policyholders due to hospitals defying cashless claims, IRDAI has issued a

circular.


It consists a series of instructions aimed at discouraging

healthcare providers from taking large sums of money as deposits from patients

and denying them cashless claims.


It also stated that in case a hospital denies the cashless

claim, policyholders are authorised to file a complaint to

the       grievance redressal officer of

the insurer.


They can find the details regarding the same on the company’s

website.


What has IRDI Directed to its Policyholders?


Insurers have been told to put in place an exclusive

grievance redressal mechanism to address complaints relating to the denial of

cashless claims.


When a complaint is received

from a policyholder on denial of the cashless facility, IRDAI has asked the

insurance company to take an appropriate action against such hospitals.


Insurance companies have

also been directed by IRDAI to ensure the availability of cashless facility at

all the hospitals they have partnered with, as part of their insurance

offerings.


“Also, where policyholders’ interests are adversely affected because of the conduct of the network providers, such instances may be immediately reported to the appropriate Government agencies of the concerned State/area. Action taken against such network providers may also be published on the website of the insurance company for the information of the insured public,” it further added.


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