Health policy · August 8, 2022

What is Cashless Hospitalisation?

Hospital bills are the last thing you want to worry about when you or someone in your family is sick. And with medical costs rising as much as 15% every year, it’s hard to imagine how we can make things easier for our families and loved ones who suffer from illness. Here’s how cashless hospitalisation can help.

Laying in the hospital or at home, recovering from surgery and all you can think about is what your next payday will be? You can kiss that worry goodbye. Cashless hospitalization is a concept that will relieve most of your worries after a hospital visit, including this one.

A cashless hospitalization means that a person doesn’t need to use money at the hospital and all their expenses will be fully covered by the private health insurance. It is not compulsory for hospitals to be cashless, but an increasing number of them are adopting this concept.

What is Cashless Hospitalization?

Some insurance companies provide cashless hospitalization, which allows policyholders to use hospital services without worrying about paying hospital expenses. To pay expenses listed in the health insurance policy, the insurance provider works with the partnered hospital.

How does Cashless Hospitalization work?

The cashless hospitalization feature is available in two situations: scheduled hospitalization and unexpected hospitalization in the event of an emergency. Prior to being admitted to a partnered hospital for a scheduled hospitalization, you need to submit an application to your insurance provider for cashless services. If you are admitted to a partnered hospital unexpectedly, you need to contact your insurance company to request cashless services.

In both circumstances, the insurance provider will pay a portion of the hospital bill directly, as indicated in the cashless health insurance contract.

Why you should look for cashless health insurance plans?

Here are some cashless health insurance benefits:

1. Reduces out-of-pocket expenses
Being admitted to the hospital can be a nerve-racking experience and it is natural to worry about all those bills that are going to be coming your way. This is when cashless health insurance policies may come in handy. It acts as a financial backup plan while you are in the hospital, and you are not liable for any out-of-pocket payments.

2. Helps you avail better medical facilities
If you need to go to the hospital on a regular basis, cashless health insurance coverage can assist you to pick high-end network hospitals with better medical facilities. The same is true for emergency hospitalisation; if you are looking to admit someone or yourself, you do not need to consider a budget or room charges. You can look forward to the nearest hospital for admission.

3. Coverage while on the road
While travelling, it is possible that you’ll experience a healthcare emergency, specifically if you are in an unfamiliar location. Without having to worry about medical bills, you may obtain emergency hospitalisation treatment at any of the network hospitals under your insurance provider’s network.


If a medical emergency comes up, or even if you have a secluded hospitalisation episode, and you don’t have the funds to cover it – cashless health insurance plans could be your saving grace. Basically, these plans mean when the time of need arises, you’re covered immediately – not after you pay for treatment.

It’s an important thing to consider as an adult, especially as your family grows. Since there are many types of health insurance plans, it’s important to learn what your family needs and put together some type of plan before an emergency happens. It will allow you and your family to focus on getting healthy rather than stressing out about how to pay the bill.