Creation of a Health Fund for Medical Emergencies in the Cashless Chaos

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Medical exigencies and an empty wallet

When faced with a medical emergency, you pay cash or use your credit card, instead of asking why the hospital is not accepting your cashless medical insurance. This is exactly what harassed consumers found out when health insurance companies recently stopped cashless treatment making customers pay first and then get reimbursed.

Health insurers blamed private hospitals of inflating bills that were paid by the insurance companies. On July 1, four public sector insurers New India Assurance, Oriental Insurance, United India Insurance and National Insurance stopped cashless insurance services in some big hospitals in big cities.

Instead of cashless, these insurers are planning to introduce a new variant - Premium Mediclaim. You will be charged a higher premium than a regular health insurance policy to avail cashless facility at major hospitals.


* Evaluate an additional plan- Can use a combination of plans 

* Evaluate switching the plan (not a preferred option)

* Create a corpus for health emergencies- Replenish the corpus with the refund from the insurer 

* Credit cards can save in urgent times - Own one card with decent limit

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Experts from give their opinion:

Sudhir Sarnobat:

Sudhir Sarnobat from

As we have repeated maintained that the differential product with high premium for claiming expenses in big hospitals is akin to legitimizing their higher charges for standard procedures.
We will continue to maintain our stand that the efficient network needs to have primary, secondary and tertiary care hospitals in right proportion of strength. Then only, the PPN would be a workable reality.
Buying another policy with higher premium would not be a feasible idea in long term. We must look at rationalizing the consumption pattern of healthcare seekers thru health insurance.
Creation of personal Health Fund (starting at early age) by investing in mutual funds with tax benefits (lock-in of 3 Years) would be a good intermediate strategy to supplement your existing health insurance till the confusion over health insurance benefits is resolved.

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