Health insurance is an easy and cost-effective tool to keep yourself financially covered against unexpected medical expenses. While most people are aware of how health insurance works, there are many technical points about health insurance policies that policyholders need to be aware of. The most important aspect that you need to understand about health insurance is the claim process. If you end up handling the health insurance claim settlement process incorrectly, there is a high chance your insurance claim will get rejected. In this article, we’ll take a look at the various reasons for health insurance claim rejections and what you can do to avoid the same.
A particular insurance claim may get rejected based on various factors. Here are the main reasons behind health insurance claim rejections you should be aware of:
Exclusions: Most health insurance policies have a list of exclusions. Exclusions refer to diseases or illnesses or self-inflicted damages, among others, which are not covered by the insurance company. If you try to claim coverage for one of the conditions mentioned in your insurance company’s exclusion list, your claim request will get rejected.
Hospital Bills: If your insurance policy has a reimbursement form of repayment, you need to make sure that you keep all the original receipts and copies of all the hospital bills and other related medical expenses. If you do not have the original bills during the time of settlement of the claim, your insurance claim may get rejected.
Hiding Medical History: If you do not disclose your pre-existing diseases/medical conditions or any history of medical illness at the time of buying medical insurance, your claim may get rejected, as insurance companies calculate their risks based on a person’s pre-existing conditions and medical history.
Lapsed Policy: If you fail to pay your health insurance premiums, your policy may lapse. If you try to make insurance claims on your lapsed policy, there is a very high chance your claim may get rejected outright.
Inform the Insurance Company on Time: When you buy health insurance, read all policy-related documents. There will be a specified time at which you can submit the insurance claim for your medical expenses. Once the specified time for submitting the insurance claim has passed, your insurance claim might get rejected. Different insurance companies will have different periods for the submission of claims.
Submitting Incorrect Information: If you submit incorrect documents and information at the time of filing your insurance claim, your claim may get rejected during the verification process due to conflicting information. So, check multiple times before submitting your medical claim to make sure that all the correct information is available.
If your health insurance claim gets rejected by your insurance provider, there is still a small chance that you can appeal again to get your claim re-reverified and approved. In case your claim has been rejected, you can take the following steps:
Check the insurance claim form that you have submitted to your insurer for any discrepancies or mistakes in the details filled in or the documents submitted. In case you identify any mistakes in the submitted claim forms, you should immediately inform your insurance provider about the same.
In case your claim has been rejected due to insufficient information provided, contact the customer service at your insurance provider and seek their help to identify and submit the missing information.
If your claim has been rejected by the company due to a reason saying ‘procedure was not medically necessary’, you need to get an official opinion from a licensed medical professional that the procedure was medically important.
If you feel that your claim has been rejected for no genuine reason, you can re-appeal by sending a letter to your insurer along with copies of all the important documents needed for making an insurance claim.
If you feel like choosing a legal recourse for getting your insurance claim approved, you can contact the office of the Ombudsman or reach out to a lawyer.
There are certain points you should keep in mind and follow to ensure your insurance claims will not be rejected when the time comes:
Provide Accurate Information: At the time of applying for health insurance, make sure that you provide the insurance company with all the relevant information about your pre-existing conditions and medical history. Do not skip out any details even if they are minor, as it could lead to claim rejection.
Cashless Claim: At the time of your medical emergency, you should pick a hospital that provides a cashless facility. Under a cashless facility, you won’t have to pay any hospital bills, as all expenses will be covered directly by your insurance company. Most reputed insurance companies have a large number of hospitals under their network, so make sure the hospital you choose is part of your insurance company’s network.
Keep Up Your Premium Payments: Make sure you make all your health insurance premium payments on time within your policy period. You will not be able to claim on a lapsed policy. Further, make sure to renew your policy on time before your current policy term expires.
Keep All Records: As mentioned above, claims may be rejected due to insufficient documentation. So make sure you carefully save all the original copies of your hospital bills, as well as some photocopies.
Health insurance is an excellent way to keep yourself and your family protected against unexpected medical costs. However, if there are any mistakes during the claim process, you face the risk of your claim getting rejected. However, with all the information mentioned in the above points, you can make the insurance claim via the correct process to reduce the chances of claim rejection. If you do not have health insurance yet, you should take a look at the various health insurance policies available at Bajaj MARKETS and choose a plan that best fits your needs.
You should resubmit your health insurance claim with all the correct information and recommendation for hospitalisation from your doctor.
A health insurance claim may get rejected for reasons like submitting incorrect information, hiding pre-existing conditions, among others.
If you have an online insurance plan and have applied for a claim online, log into your insurance account to check the status. Otherwise, you can contact your insurance company for information on your claim status.
Each insurance company has a different claim rejection ratio. You should check with your insurance provider for details on the same.
Yes, buying health insurance online is just as safe and valid as buying in person. You may even get a discount on online insurance as there are no commission fees involved.