Why don’t insurance companies allow choice of hospital in cashless insurance?
Not all hospitals have a tie up with the insurance company and it is for this reason the choice of hospitals is limited when you go for a cashless insurance. The cashless facility of cashless
insurance comes with a clause that you can avail the service only in the networked hospitals of your insurer. If you choose to get treatment in any hospital which is not in the networked chain of hospitals, your cashless insurance plan will not be applicable.
Insurers usually tie-up with hospitals in order to offer the cashless hospitalisation facility. This is to avoid disputes between the hospitals and the insurer. The insurer and the hospital enter into an agreement to provide this facility to the insurer’s policyholders. The terms of the agreement will be mutually beneficial to the hospital as well as the insurer. This way, the hospital cannot overcharge the policyholder and the insurer also cannot refuse to pay the claim. Insurers, however, do allow you to claim expenses incurred at non-network hospitals. Do check the terms and conditions of your policy.
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