The Growth of Cashless Treatment in Tier-2 and Tier-3 Cities

What is Cashless Treatment?

Cashless treatment is a type of facility offered by health insurance companies to the insured. Under this, when an insured is admitted to a hospital that is under the insurer’s network, the insured is not required to pay the medical bills upfront; rather, the insurer steps in to directly settle the bills with the hospital.

Did You Know that the General Insurance Council had introduced a cashless initiative to offer cashless treatment at both network and non-network hospitals?

Analysing the Growth of Cashless Treatment in Tier-2 and Tier-3 Cities

In recent years, there has been a growth of cashless health insurance in tier 2 and tier 3 cities. In addition to digitalisation, even the government has taken initiatives to encourage people living in these cities to opt for medical insurance by offering cashless settlement facilities.

Let’s analyse the growth of cashless treatment in tier 2and tier 3 cities through these aspects:

Penetration of Technology

The penetration of technology has impacted every sphere of life, and medical insurance companies are reaching even the remote areas of the country to offer cashless treatment, which is also a byproduct of technological advancements. With easy online screening and approval for direct settlement of medical bills, insurance companies have now partnered with hospitals in tier 2 and tier 3 cities.

Zone-Based Insurance Plan

Many health insurance companies have now introduced Zone-based insurance plans that are designed to meet the needs of individuals living in different parts of the country. Individuals from tier 2 and tier 3 cities turned towards medical insurance as they got tailored policies with the added benefit of cashless treatment.

Rising Medical Inflation

Gone are the days when individuals living in tier II or tier 3 cities could easily pay medical bills out of their pocket. The rising medical inflation in the country has impacted even the remote areas, thus pushing individuals to opt for medical insurance that allows them a cashless treatment both at local and renowned hospitals.

Did you know that the medical inflation in the country is at 14% and is only expected to rise in the coming years?

Government Initiatives to Promote Medical Insurance

The role of the government in supporting the growth of cashless treatment in tier II and tier 3 cities is crucial. The government has taken several initiatives to promote medical insurance and encourage individuals to purchase medical insurance by offering cashless treatment facilities.

For instance, the Pradhan Mantri Jan Arogya Yojana or the PM-Jay scheme was introduced to offer cashless treatment up to ₹ 5,00,00 for every insured member of the family for certain types of diseases. 3

Did You Know that bearing the cost of medical treatment out of pocket pushes around 6 crores Indians into poverty annually?

Why You Must Look for Cashless Treatment in Health Insurance?

It is true that when it comes to medical insurance, one size doesn’t fit all. However, cashless treatment is a facility that every individual looking for medical insurance must opt for. Here’s why:

Direct Settlement of Medical Bills

Cashless treatment is an assurance that your medical bills are settled directly by your insurance provider, so you can focus solely on getting better and healthier. Additionally, under cashless treatment, you do not have to worry about paying the bills and then obtaining reimbursement.

Access to Quality Healthcare

Knowing that your medical bills won't become a burden, you can choose quality healthcare. Most of the health insurance companies have networks with quality hospitals nationwide, where you can be treated without worrying about medical bills.

A Sense of Financial Security

Life is filled with uncertainties, and while you can not control them, the least you can do is stay prepared. Purchasing medical insurance with a cashless treatment facility is a great way to bring a sense of financial security. You enjoy peace of mind knowing that your finances won’t be drained in case of a medical emergency.

Final Words

The sole purpose of purchasing medical insurance is to stay financially protected against medical emergencies, and what better than a cashless treatment facility that protects you from paying a single penny? The growth of cashless treatment in tier 2 and tier 3 cities is largely a result of medical inflation and the penetration of technology in the country.

If you haven’t secured your medical needs yet, simply head to Jio Insurance Broking to explore, compare and purchase a policy that is best suited for your needs.