Healthcare is expensive in India, the United States of America, the United Kingdom, or anywhere else. As a result, many people cannot afford the necessary therapy. Therefore, it doesn’t make sense to use your savings to cover the hospital fees, even if you are financially stable. However, having a health insurance plan to cover your medical requirements when they arise does make sense.
A health insurance plan can provide financial assistance in a medical emergency. A variety of benefits are also included with the plan for individuals covered by it. Being covered by a health insurance plan is crucial to maintaining coverage for many elements of healthcare. A few of these include:
1. Hospitalization insurance.
2. The cost of an ambulance.
3. The price of purchasing drugs.
4. The insured’s medical expenses
As the insured, you must submit a claim to your health insurance company for the portion you need to pay after performing the scrubbing claims.
Types Of Claims You Can Make Under Your Health Insurance Plan.
Make sure you carefully examine the claims process of any health insurance plan you are considering purchasing. This is one of the aspects of an insurance plan that distinguishes it from others.
There are mainly two types of health insurance claims: reimbursement and cashless. Customers prefer cashless claims over the other one out of the two.
Cashless Claims
Type of HealthCare Claims- image from pixabay by Marionbrun
If you submit a claim for your health insurance through a network hospital connected to the insurance provider, you may be able to do so without paying any cash. In this claim, the insurance provider will cover all medical costs; you won’t be responsible for anything.
When you are hospitalized at a network hospital, your insurance company immediately covers your medical expenditures with the hospital via a cashless claim settlement process. Therefore, you are not required to cover any costs on your own. Because of this, it is known as a cashless claim.
The insured must seek care from a hospital affiliated with the insurance provider from which the health insurance plan was purchased to be eligible for a cashless claim.
Cashless Claim Settlement: Advantages And Drawbacks
Advantages.
Paying the fees, making the deposits, and managing all the other laborious paperwork that comes with any medical emergency is one of the most frequent financial headaches we encounter at hospitals. In addition, we are left in charge of the paperwork and finances at a time when we would want to stay with and support our family, which further heightens the emotional strain. You can eliminate these inconveniences and accelerate the procedure using a cashless claim. It also relieves the strain of managing and organizing funds, which is very useful in emergencies.
You don’t have to worry about paying anything because the insurance provider will cover all necessary medical costs. The paperwork required for this claim process is minimal.
Drawbacks.
You must only request hospitalization at a networked hospital to receive the cashless benefit. You might not be able to locate a networked hospital in your area in the event of a medical emergency. This would be a serious setback as medical care would only be provided on a reimbursement basis in non-network hospitals.
Reimbursement Claims
Types of Health Care Claims- Image from Pixel by Mohamed Hassan
Reimbursement claims are filed when the covered person is not treated at a network hospital. In this case, the insured is responsible for paying all costs before receiving reimbursement from the insurance provider. Therefore, reimbursement claims can take longer since the insurance provider needs proof before paying the customer back.
You are responsible for paying your medical expenses up front in a reimbursement claim process. You must submit the relevant invoices to the insurance company after receiving treatment and being released from the hospital. The business then pays back the medical expenses you incurred. This reimbursement claim is the less popular option because fewer people would have large sums of money to cover their hospitalization costs.
Reimbursement Claims Settlement: Advantages and Drawbacks
Advantages.
Any hospital can treat you, and you can pay the hospital’s bills later.
Drawbacks.
Any hospitalization will put financial pressure on you. Therefore, you will be reimbursed only after being released from the hospital and receiving all necessary treatment.
For the insurance company to pay out your claim, numerous bills, certificates, and reports must be provided. As a result, you can become perplexed due to the lengthy documentation process. Additionally, it prolongs the time-consuming claim settlement procedure as a whole. To be safer, a client may be forced to scrub the claim to ensure that all information provided to help in compensation is accurate.
Processes for Reimbursement Claim vs. Cashless Claims
When contrasting the two types of health insurance claim procedures, cashless claim settlement wins because it relieves the policyholder of the financial burden. Even in an emergency, they don’t have to delay or worry about how they will pay for their medical care.
However, it’s crucial to have the money on hand to cover the bill amount at the time of discharge during the reimbursement process. You can be admitted to any nearby hospital in an emergency to receive care and then submit a claim for payment.
Process for Cashless Claims
The general steps to submit a cashless claim under a health insurance plan are as follows:
- Inform the hospital’s insurance help department about your hospitalization.
- At the support desk, present your health card to prove your identity.
- Send the insurance company the pre-authorization form.
- According to the terms and conditions of the health policy, the insurance company will review the submitted documents and process the claim.
- The insurance provider will settle the claim by the terms and conditions of the policy once all the requirements are completed.
There are two kinds of cashless claim processes: claims for planned and unplanned hospitalizations.
Hospitalization Scheduled
When hospitalization is arranged, the policyholder is informed before receiving care. The following are the steps to submit a claim for planned hospitalization:
Notify the insurance provider three to five days before your hospital stay.
The hospital will receive a letter of confirmation from the insurance provider.
· On the day the insured person is admitted, submit the health care and the confirmation letter.
· The insurance provider will pay the hospital immediately to settle the debt.
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Unplanned Hospitalization
It’s also referred to as emergency hospitalization. Hospitalization of this kind occurs abruptly and is unforeseen. This kind of hospitalization typically happens when the policyholder suffers from an illness or injury that needs immediate medical attention.
- Within 24 hours of being hospitalized, notify the insurance provider.
- With the other necessary documents, submit the health insurance claim form.
- A letter of authorization will be delivered to the hospital by the insurance provider.
- The insurance provider will pay the hospital immediately to settle the debt.
Processes for Reimbursement Claim
If the insurance company does not offer a cashless claim option or the hospital is not on their list of network hospitals, policyholders must pay the full bill after receiving treatment. However, your medical expense will eventually be reimbursed by your health insurance provider.
Within 15 days, notify the health insurance provider.
Complete the health insurance claim form and send it in with the initial discharge report and any additional related medical bills.
Other pertinent documents, such as a canceled check, ID, and residence evidence, should be submitted.
All of the paperwork will be checked by the insurance.
The insurance will subsequently initiate the procedure of reimbursement.
Within 21 days of receiving the documents from the health insurance company, the insurance company will finish processing the claim.
How To Ensure That No Mistake Is Made When Filing A Claim
Use of Claim scrubbers.
After claims are created but before they are submitted to payers, claim scrubbers check them for mistakes. Before a claim is submitted, claim scrubbers check it for mistakes once it has been made and is prepared to be submitted. Medical billers or coders will manually correct claims flagged by claim scrubbers as having errors (which happen frequently). Claims approval is likely provided the biller or coder complies with all requirements set forth by the claim scrubber.
The Importance Of Claim Scrubbing
Quicker payments
Claims that are rejected cause payment delays. How can you get paid if your claims aren’t approved? You are far more likely to file an accurate claim the first time if you use claim scrubbers, allowing payers to pay you on schedule. As a result, your practice will generate more income and cash flow to meet its demands.
More precise claims (and fewer denials)
Claims that have undergone scrubbing claims tend to be more precise, which is advantageous. The fewer denials you get, the more likely your assertions are true. As a result, it will be easier for you to convince payers to provide you with the money you require.
Additional time
It takes a lot of time and is simple to make mistakes when you manually check all of your claims for problems. Your staff doesn’t spend any time on the process with claim scrubbers. Computer software completes the task more swiftly and effectively. Your front-office employees can use the newly freed time for real patient encounters, and you’ll catch considerably more mistakes in a tiny fraction of the time.
