Role of Hospitals in the Changing Health Insurance

Its been months since the public sector health insurance organizations declared a black-list of hospitals where the cashless facility would not function. This was implemented in response to hospitals overcharging patients with cashless health insurance service. The hospitals were having a field day as the patient never really asked number of questions as long as they dont need to spend anything.

The cashless facility was renewed and the hospitals got talking to the public sector health insurance companies for a agreement in which no one undergoes a loss of business and the customer would not be affected adversely. The hospitals suggested that they can in fact diminish the rates for the customers having cheap health insurance from the public sector health insurance companies, if they provides bulk business. Although this sounds effective in theory, in practice to make sure that these hospitals got bulk business, the health insurance companies would have to cancel cashless services in a lot of hospitals, as a result of which customers would flock to these hospitals offering lower rates.

This functions great for the health insurance company and the hospitals, although the customer would suffer as his choices would get limited and moreover he would be forced to go to a hospital which has a bulk business tie-up with the health insurance company.

The four public sector health insurance companies Oriental Insurance, New India, United Indi as well as National Insurance together have more than 50% of the health insurance market and furthermore it is unlikely that they would take a step which would be unfavourable to the customer. This proposal is in argument stage and it is impossible to see the light of the day in the current format. Given the joint capacity of the 4 public sector companies, they might be able to tell the hospitals to anyway cut down the rates.

It would be an perfect scenario where the customer has the choice to go at any place for medical treatment but can be guaranteed of lowered rates if they go to a partner hospital of the medical insurance provider.