By Siddharth Singhal
Health insurance is a great financial shield that protects you in case of a medical emergency. However, any crack in this shield can cost you heavily. The tricky part is that these cracks often go unnoticed by policyholders until they need to use their insurance — that is while making a claim.
One of the most-overlooked aspects of health insurance is the consumables coverage. Consumables are basically the medical equipment and tools used in the treatment of a patient that are discarded after use. They can add up to a lot and significantly impact your medical bills, especially during prolonged hospital stays or repeated complex medical procedures.
Consumables and health insurance
While these consumable items are an integral part of any medical treatment, standard health insurance plans typically do not cover their costs. The reasons for their exclusion are twofold. One is their single-use nature, and the other is the arbitrary variation in their usage and pricing across different hospitals.
Surprisingly, a large section of policyholders are not aware of the exclusion of consumables from health insurance plans.
Consumables contribute to 8-10% of the total hospital bill and their exclusion can result in an unpleasant experience during claim settlements. For instance, a claim of Rs 10 lakh may result in a payout of only Rs 9 lakh and the policyholder may have to pay Rs 1 lakh out of his pocket.
By being smart and aware, one can make sure that consumables are covered in their policy. Having recognised the kind of financial strain this exclusion can impose, many insurers now offer consumables cover as an add-on rider. The riders generally cost 7-10% of the base premium.
Consumables cover a must
By opting for consumables coverage, you can significantly reduce your out-of-pocket expenses. If your existing policy doesn’t offer the consumables cover add-on, you can also consider porting your policy to another insurer. Considering the need for consumables coverage, insurance companies have made it easier for policyholders to opt for it at the time of renewal. So, you have the option to either continue with the same policy or look out for a better option. It is also estimated that opting for extensive coverage with consumables cover can lead to 11% better payouts during claim settlement.
It is fair to say that the consumables cover add-on helps you to cut down on out-of-pocket expenses, thereby ensuring better financial protection and peace of mind during medical emergencies. By opting for this rider, you can focus on more important aspects of your treatment, that is on receiving quality medical care. While choosing health insurance, it is crucial to review and understand the coverage details of your policy. Adding consumables coverage to it is not only a smart move but also an essential one to achieve greater financial security and access to quality healthcare without the worry of unexpected expenses.
(The writer is head, health insurance, Policybazaar.com. Views expressed are the author’s own and not necessarily those of financialexpress.com)