Don't Have Insurance? Brace Yourself to Pay More at Hospitals

Have you ever wondered why healthcare charges seem to differ depending on whether you pay personally or through a health insurance claim? As health care costs increase day by day, then it becomes very essential to know about health related expenses or charges applied by the hospitals. 

CA Bhagyashree Thakkar, a well-known finance influencer, recently highlighted the variance in hospital charges when paying hospital bills personally or through insurance companies. Her analysis exposes a critical point of healthcare economics frequently unnoticed by patients. By discussing the difficulties of hospital billing, Thakkar aims to enable individuals to make better decisions and advocate transparent healthcare billing. Let's discuss some points to understand it in a better way.

Hospitals Charge More if Your health insurance is delayed or you don't have any health insurance.

Negotiated Rates: Hospitals frequently have special rates negotiated through insurance companies, which are not extended to patients paying out-of-pocket.

Insurance Benefits: Insurance carriers can secure discounts, unlike individual payers who might face higher charges.

Fraud Complaints: Discrepancies with insurance can be addressed to RBI or IRDA, but private hospitals lack a direct governing authority for disputes.

Rate Disparity: Patients paying directly can face significantly higher charges, sometimes up to 27% more than those covered by insurance.

Industry Practice: It's common for hospitals to charge higher standard rates once contractual obligations with insurers are bypassed.

Moreover, Thakkar focuses on the impact of delayed insurance claims on medical bills. He pointed out that when individuals delay filing claims with their insurance providers, hospitals may utilize this situation by charging increased prices, knowing that patients are more likely to pay without questioning the bill's details.

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CA Bhagya Shree Thakkar's insights into healthcare billing highlight the tie up between hospitals and insurance companies. And also, it is very essential for an individual to understand the need for greater clarity and awareness in managing expenses. By understanding the modulation of hospital charges and insurance claims, individuals can make informed decisions to protect their financial well-being.