A simple checklist to select the best health insurer for you.
A thread🧵(1/12)
A thread🧵(1/12)
1.) Network hospitals:
You may have seen this word plastered on every insurer's website, but what it basically means is that if you're hospitalized in one of the insurer's network hospitals, you can avail cashless payment from your insurer. (2/12)
You may have seen this word plastered on every insurer's website, but what it basically means is that if you're hospitalized in one of the insurer's network hospitals, you can avail cashless payment from your insurer. (2/12)
The insurer pays to the hospital directly without you having to pay up and be reimbursed later. So an expansive hospital network is always a good thing. (3/12)
But the important thing would be to make sure that there’s at least one close to where you live and your family knows about it, so they know which hospital to choose. (4/12)
2.) In-house claim settlement:
Some insurers will tell you that they settle claims through third-party administrators (TPAs). What happens with TPAs is that the claim settlement process takes more time as there is much back and forth between you, the TPA, & your insurer. (5/12)
Some insurers will tell you that they settle claims through third-party administrators (TPAs). What happens with TPAs is that the claim settlement process takes more time as there is much back and forth between you, the TPA, & your insurer. (5/12)
What's a better choice instead?
Consider buying policies from insurers having in-house settlement teams. You can find out this information from the website of any #Insurer - if their claim settlement is in-house or done by a TPA. (6/12)
Consider buying policies from insurers having in-house settlement teams. You can find out this information from the website of any #Insurer - if their claim settlement is in-house or done by a TPA. (6/12)
3.) Claim Settlement Ratio
If an insurer pays out 97 of the 100 claims it receives, the Claim Settlement ratio is 97%. This is an indicator of the credibility of the insurer. Pretty straightforward stuff. (7/12)
If an insurer pays out 97 of the 100 claims it receives, the Claim Settlement ratio is 97%. This is an indicator of the credibility of the insurer. Pretty straightforward stuff. (7/12)
Higher is always better but any settlement ratio above 85% is also good and no cause for concern. (8/12)
4.) Incurred Claims Ratio:
This ratio tells you about the amount paid out in claims by the insurer as against the amount collected by them in premiums. (9/12)
This ratio tells you about the amount paid out in claims by the insurer as against the amount collected by them in premiums. (9/12)
Things get tricky here since a high ICR could indicate an unsustainable #business model where the company probably offers to cover almost everything, including things that are not profitable to their business. (10/12)
And in this case, the insurer could either hike up their premiums later or stop issuing certain policies.
However, you wouldn’t want a company with a low ICR either, as it would mean that they hardly settle claims. There’s a sweet spot in between 50-70%, which is ideal. (11/12)
However, you wouldn’t want a company with a low ICR either, as it would mean that they hardly settle claims. There’s a sweet spot in between 50-70%, which is ideal. (11/12)
Don't forget to share this with your friends and family so they know exactly what to look for.
P.S. We help you select the "best" health insurance policy for you & your loved ones. Book a call - bit.ly/3koiTh0
Or just text us on WhatsApp!- bit.ly/3eIrQy6
P.S. We help you select the "best" health insurance policy for you & your loved ones. Book a call - bit.ly/3koiTh0
Or just text us on WhatsApp!- bit.ly/3eIrQy6
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