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Customers to be Updated About List of Hospitals by Health Insurers

by Lyju Kuruvilla on  October 10, 2011 at 11:25 AM Health Insurance News   - G J E 4
Health insurers offering cashless facility have been directed to keep their customers updated about any change in the list of hospitals as well as about alternative options in the vicinity.
 Customers to be Updated About List of Hospitals by Health Insurers
Customers to be Updated About List of Hospitals by Health Insurers
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Citing an IRDA report for 2008-09 and 2009-10, Minister of State for Finance Namo Narain Meena in a written reply informed the Lok Sabha that cashless basis of settlement is costing more for all type of diseases. He was replying to a query whether the cashless health insurance facility was being misused by hospitals. He further said to ensure that interest of policy holders is not adversely affected when the insurers make changes in their partner network of hospitals, directions have been issued to them.

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Insurance companies negotiate rates for certain medical procedures and normally include in the network only those hospitals, who have agreed to the rates. Last year customers were left in a quandary following a deadlock between the four PSU insurers and major private hospitals over resumption of cashless facilities.

The four PSU insurers - New India Assurance, United India Insurance, National Insurance and Oriental Insurance - have suspended the cashless service at select hospitals from July 1, 2010, alleging over-billing by them. Later on the Insurance Regulatory and Development Authority (IRDA) came out with a guideline asking insurers to constantly inform customers about the hospitals which offer cashless treatment.

Source: Medindia
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