- Date : 23/05/2023
- Read: 3 mins
With these health coverage tips, you can reduce out-of-pocket expenses
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Out-of-pocket expenses continue to be a significant expense in India despite health coverage.
-
There are some simple tips on how to reduce these out-of-pocket expenses.
-
Best medical attention should be the priority in serious ailments
You may buy health insurance and live under the misconception that you are free from medical expenses. However, out-of-pocket expenses constitute 62% of all healthcare expenses in India. In the unfortunate event of hospitalisation in your family, you can be proactive and minimise out-of-pocket expenses. Here are a few handy tips -
Also Read: 5 essential things to do before choosing a critical illness plan
1. Adequate health insurance -
If the sum assured of your health coverage is low, there is a high possibility that you will end up paying out-of-pocket expenses. You can choose a sum assured that is sufficient to cover hospitalisation in the place you live in. Also, regularly upgrade your healthcare budget to stay current with rising medical inflation.
2. Upgrade health insurance cover -
If your health insurance covers only hospitalisation, it is time to seek coverage for add-on riders. Most health insurance plans offer OPD expenses, daycare expenses, daily cash allowance etc., as add-on riders if not included in the base plan. Also, look for health coverage with fewer sub-limits, like room rent limits.
3. Buying medicines -
Instead of going for the prescribed brand of medicine, compare the medicine’s composition across different brands. Generic medication can be just as effective and for a far lesser cost. Also, check the nearest Pradhan Mantri Bhartiya Janaushadhi Pariyojana Kendras to see if the prescribed medicine is available. This can lead to cost savings in healthcare.
4. Compare diagnostic costs -
An MRI in a government hospital costs around Rs 3,000. But it can cost three times more in a private diagnostic centre. Cost variances are also seen between standalone and hospital diagnostic centres. While checking the quality of the machine used for sophisticated tests is essential, cost comparisons are recommended for a simple X-Ray or ultrasound.
5. Room selection -
Always check the room rent sub-limit of your health policy before selecting a room. You must inevitably pay the excess cost if you choose an expensive room. In addition, in many hospitals, the incidental expenses tend to go up with the room category. So, by selecting a space within the limit, you can also reduce these costs.
6. Co-pay and deductible clauses -
Health plans with a higher copay or deductible clauses are offered at a low premium. But your out-of-pocket expenses will be increased at the time of claim settlement. With zero copay or deductibles, the burden of hospitalisation expenses falls on the insurer, which reduces your costs.
Also Read: 6 Tips to lower your health insurance premiums in 2023
7. Treatment options -
A sickness doesn’t always require treatment in a big hospital. You can look for online appointments, tele-consultations and health apps. These options are cheaper than a hospital consultation and also offer online discounts.
Also Read: 7 Riders to make your Mediclaim more comprehensive
The efforts to reduce your out-of-pocket expenses must be proactive. When it comes to the moment of a serious medical emergency, your focus would inevitably be on getting the best treatment. Therefore, the balance in health insurance can be stuck by trying to save money without undermining the seriousness of the illness.
Source:
-
Out-of-pocket expenses continue to be a significant expense in India despite health coverage.
-
There are some simple tips on how to reduce these out-of-pocket expenses.
-
Best medical attention should be the priority in serious ailments
You may buy health insurance and live under the misconception that you are free from medical expenses. However, out-of-pocket expenses constitute 62% of all healthcare expenses in India. In the unfortunate event of hospitalisation in your family, you can be proactive and minimise out-of-pocket expenses. Here are a few handy tips -
Also Read: 5 essential things to do before choosing a critical illness plan
1. Adequate health insurance -
If the sum assured of your health coverage is low, there is a high possibility that you will end up paying out-of-pocket expenses. You can choose a sum assured that is sufficient to cover hospitalisation in the place you live in. Also, regularly upgrade your healthcare budget to stay current with rising medical inflation.
2. Upgrade health insurance cover -
If your health insurance covers only hospitalisation, it is time to seek coverage for add-on riders. Most health insurance plans offer OPD expenses, daycare expenses, daily cash allowance etc., as add-on riders if not included in the base plan. Also, look for health coverage with fewer sub-limits, like room rent limits.
3. Buying medicines -
Instead of going for the prescribed brand of medicine, compare the medicine’s composition across different brands. Generic medication can be just as effective and for a far lesser cost. Also, check the nearest Pradhan Mantri Bhartiya Janaushadhi Pariyojana Kendras to see if the prescribed medicine is available. This can lead to cost savings in healthcare.
4. Compare diagnostic costs -
An MRI in a government hospital costs around Rs 3,000. But it can cost three times more in a private diagnostic centre. Cost variances are also seen between standalone and hospital diagnostic centres. While checking the quality of the machine used for sophisticated tests is essential, cost comparisons are recommended for a simple X-Ray or ultrasound.
5. Room selection -
Always check the room rent sub-limit of your health policy before selecting a room. You must inevitably pay the excess cost if you choose an expensive room. In addition, in many hospitals, the incidental expenses tend to go up with the room category. So, by selecting a space within the limit, you can also reduce these costs.
6. Co-pay and deductible clauses -
Health plans with a higher copay or deductible clauses are offered at a low premium. But your out-of-pocket expenses will be increased at the time of claim settlement. With zero copay or deductibles, the burden of hospitalisation expenses falls on the insurer, which reduces your costs.
Also Read: 6 Tips to lower your health insurance premiums in 2023
7. Treatment options -
A sickness doesn’t always require treatment in a big hospital. You can look for online appointments, tele-consultations and health apps. These options are cheaper than a hospital consultation and also offer online discounts.
Also Read: 7 Riders to make your Mediclaim more comprehensive
The efforts to reduce your out-of-pocket expenses must be proactive. When it comes to the moment of a serious medical emergency, your focus would inevitably be on getting the best treatment. Therefore, the balance in health insurance can be stuck by trying to save money without undermining the seriousness of the illness.
Source:
