Terminology - Health Insurance: Reasonable Charges
One would have noticed the mention of 'reasonable charges' on a hospital bill.
One would have noticed the mention of 'reasonable charges' on a hospital bill.
Insurers prefer paying claims which
are reasonably charged by the hospital and not an exorbitant rate for any of
the expense-head.
The insurer makes this clear to the
policyholder through its policy document that only reasonable charges would be
reimbursed.
The basis of 'reasonability 'would primarily hinge on the charges prevalent in the geographical area for identical or similar services taking into account the nature of the illness involved.
The basis of 'reasonability 'would primarily hinge on the charges prevalent in the geographical area for identical or similar services taking into account the nature of the illness involved.
Cost of hospitalisation differs across cities and
hospitals and therefore the amount of 'reasonable charges' will also differ.
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