HEALTH INSURANCE

Indian health financing scene raises several challenges, which are:

increasing health care costs,

The high financial burden on the poor eroding their incomes, and

The increasing burden of new diseases and health risks.

Given the above scenario exploring health-financing options becomes critical. Health Insurance is considered one of the financing mechanisms to overcome some of the problems of our system.
It is necessary to have it for the health aspect and help tax exemptions and premium paid towards health insurance under Section 80D of the Income Tax Act 1961.

A Health Insurance Policy would typically cover expenses reasonably and necessarily incurred under the following heads regarding each insured person subject to the overall ceiling of Sum Insured (for all claims during one policy period).

Room, Boarding expenses.

Nursing expenses.

Fees for anaesthesia, surgeons, physician, consultants, specialists.

Anaesthesia, blood, oxygen, operation theatre charges, surgical appliances, medicines, drugs, diagnostic materials, X-ray, Dialysis, chemotherapy, Radiotherapy, Cost of the pacemaker, Artificial limbs, cost or organs and similar expenses.

Not just medical facility, it also provides other advantages such as tax benefits. It helps tax exemptions on the premiums under Section 80D of the Income Tax Act, 1961.

Choosing Health Insurance

Insurance companies have tie-up arrangements with a network of hospitals in the country. If the policyholder takes treatment in any network hospitals, there is no need for the insured person to pay hospital bills. Through its Third-party administrator (TPA), the Insurance Company will arrange direct payment to the Hospital. Expenses beyond sub limits prescribed by the policy or items not covered under the policy must be settled by the insured direct to the Hospital. The insured can take treatment in a non-listed hospital, in which case he must pay the bills first and then seek reimbursement from Insurance Co. There will be no cashless facility applicable here.