Health Insurance is a type of insurance that offers financial coverage for medical expenses, in the case of policyholder hospitalization. Health insurance plans provide health coverage to the insured with multiple benefits including cashless hospitalization, day-care facility & reimbursement of the incurred expenses and many more.
What is a Health Insurance Policy?
A health insurance policy is a contract between the insurer and policyholder in which insurance company provides financial coverage for medical expenses incurred by the insured. A health policy provides benefit of reimbursement of medical expenses or cashless treatment mentioned in the health policy.
Apart from the medical coverage, a Health Insurance Policy also offers tax under section 80D of the Income Tax Act, 1961.
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Medical scheme membership doesn’t come cheap and consequently many consumers are wondering about hospital plans, what they cover and what the cheapest ones are.
The medical scheme industry is full of jargon and benefit structures that often leave the man on the street confused and frustrated when it comes to understanding and accessing their benefits.
Read: Consider this when choosing a medical scheme
A hospital plan is offered by a registered medical scheme and should not be confused with hospital insurance or hospital cash-back plans. Medical schemes are regulated by the Medical Schemes Act, while the others fall under the umbrella of insurance products. A hospital plan has to pay for 270 Prescribed Minimum Benefits when treated in a hospital and for the treatment of 26 chronic conditions.
Where the difference comes in is that a hospital plan will pay up
1 The Burden of Medical Debt: Results from the Kaiser Family Foundation/NY Times Medical Bills Survey, Jan. 5, 2016, Pg. 2-3, accessed 9/21/2016. https://www.kff.org/health-costs/report/the-burden-of-medical-debt-results-from-the-kaiser-family-foundationnew-york-times-medical-bills-survey/.
2 HOSPITAL – B40000 SERIES
In Arkansas, Policies B40100AR & B401HAR. In Idaho, Policies B40100ID & B4010HID. In New York, Policies NYB40100 & NYB4010H. In Oklahoma, Policies B40100OK & B4010HOK. In Oregon, Policies B40100OR & B4010HOR. In Pennsylvania, Policies B40100PA & B4010HPA. In Texas, Policies B40100TX& B4010HTX. This is a brief product overview only. Coverage may not be available in all states including but not limited to New Jersey and Virginia. Benefits/premium rates may vary based on plan selected. Optional riders are available at an additional cost. The policy has limitations and exclusions that may affect benefits payable. Refer to the policy for complete details, limitations, and exclusions. For costs and complete details of the coverage, please contact your local Aflac agent.
Limitations & Exclusions for