Since the COVID-19 pandemic occurred, individuals have become quite sensitive when it comes to their coverage plan. They now refer to it as a part of their life. When one is selecting a health insurance plan most of them only consider the cost of the policy and the benefits offered. However, as soon as one has to make a claim, the insurance firm comes up with something known as a co-payment, which may be devastating to most people. This is why it is important to check the terms and conditions before purchasing one since many health insurance policies have this co-payment provision.
Health insurance: What is co-payment?
Co-payment in health insurance means that you and the insurance company will split the cost in equal proportions. It means that if you ever get ill and want to seek medical attention, you have to shoulder a portion of the total expenses and the insurance company, the rest. Typically, it varies between 10% and 30%. For instance, if you have a health insurance policy that entitles you to a 10% co-payment clause and your hospital bill is ₹ 1 lakh. It’s ₹10,000 to be paid by you and the insurance company will bear ₹90,000 of the cost.
Is co-payment required in each policy?
Not at all. It is also important to understand that not every health insurance policy comes with a co-payment clause. Few firms fully reimburse your medical bills without requiring you to contribute somehow.
How does co-payment affect your policy?
Co-payment only affects the amount of premium you pay for your insurance policy. In a nutshell, the more that you ‘co-pay’ in your insurance policy, the less amount you are required to pay as your premium fee. This means that although policies with high co-payment rates could be cheaper than other policies, you will be spending more of your own money on your medical bills.
If you are willing to get a health insurance for you or your family, you must know about the co-payment in health insurance. If you are not aware of what’s co-payment, then we got you covered. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
