Terminology - Health Insurance : Co-Payment - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
Trending
Powered by Blogger.
Wednesday, April 13, 2016

Terminology - Health Insurance : Co-Payment

Co-Payment - Terminology - Health Insurance 

A health insurance plan is supposed to reimburse the cost of hospitalisation and charges a premium for it. 

However, if the policyholder agrees to pay a certain percentage of the hospital bill, it is a case of co-payment.

 In doing so, insurer charges a lesser premium. Importantly, the sum insured remains the same and is not reduced.

A co-payment is therefore a cost-sharing requirement under a health insurance policy that provides that the policyholder will bear a specified percentage of the admissible costs.
It is  not necessary that there will be a co-payment feature in all plans but in a senior citizen health insurance plan it could be a mandatory feature. 

In higher age groups as the premium rates are higher, a co-payment may provide some relief in term of affordability. 

Some plans, however, ask for as much as 20% co-payment if the treatment is done at a non-network provider or / in a city different from where the plan was bought.

Terminology - Health Insurance : Co-Payment Reviewed by S. Chitra on April 13, 2016 Rating: 5 Co-Payment - Terminology - Health Insurance  A health insurance plan is supposed to reimburse the cost of hospitalisation and charges a pr...

No comments:

Google+ Followers