When it comes to health insurance, policyholders need to understand the difference between network and non-network hospitals. Network hospitals team up with insurance companies to give cashless care to insured clients (policyholders). This means that the insurance company pays the hospital directly, which reduces the patient’s financial burden. Typically, insurance companies provide a preferred list of network hospitals, assuring efficient medical care with minimal paperwork.
In contrast, non-network hospitals do not have such arrangements with insurance companies. Although patients can continue to receive all treatments, they must first pay for all medical expenditures themselves. The insured can later seek reimbursement by submitting medical bills and other documentation to the insurer.
“Selecting the right hospital type can have a big impact on both the medical experience and the cost, so policyholders should thoroughly examine their insurance plan’s hospital network before selecting a health insurance policy,” said Rakesh Goyal, Director – Probus.
Differences
When purchasing health insurance, the distinction between network and non-network hospitals has a significant impact on how medical bills are handled. Understanding the contrast between the two may allow policyholders to make more educated healthcare decisions.
Goyal said, “Network hospitals are hospitals that have signed partnerships with health insurance companies to provide cashless care to insured patients. This means that when a health insurance policyholder seeks care in a network hospital, they are not compelled to pay hospital fees in advance. Instead, the insurance company pays the amount straight to the hospital. For example, if a person is admitted to a network hospital for surgery, the insurance company will cover the permitted charges, freeing the patient to focus on recovery rather than finances. In this case, the policyholder only needs to acquire pre-authorization from the insurer to receive cashless treatment.”
