Covid-19 treatment: Irdai urges hospitals to not deny cashless to patients

This follows reports that some hospitals were denying the facility to policyholders despite having a cashless arrangement with the insurers

The insurance regulator on Friday requested network providers (hospitals) to provide cashless treatment to policyholders for all treatments covered by the insurance policy including Covid-19 as per the terms of service level agreements.

The regulator had, on Thursday, issued a communication to insurance companies that they should ensure that all network provider hospitals extend the cashless facility for any treatment to the policyholder including Covid-19 treatment in accordance with agreed provisions. 

This comes after there were reports that some hospitals were denying cashless facility to policyholders for treatment of Covid-19 treatment despite having a cashless arrangement with the insurers.

The Finance Minister Nirmala Sitharaman had also tweeted on this matter on Thursday and had asked the insurance regulator to act on the matter immediately. 

In the communication issued on Friday, the regulator said, “All hospitals are also requested not to differentiate the patients in terms of admission or treatment whether they are insured or not insured or whether they pay cash or avail of cashless facility”. 

The regulator has also asked the general and health insurance companies to ensure that hospitals do not levy any additional charges for the same treatment other than those rates that are agreed with the insurers.

“Charging differential rates to policyholders, demanding advance deposits, and denying cashless treatment to policyholders of health insurance policies is not only detrimental to the interest of policyholders but may also violative of the service level agreement between the service provider hospitals and the insurance companies”, the regulator further said.