Reasonable Charges - Terminology - Health Insurance

Terminology - Health Insurance: Reasonable Charges

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.

Cost of  hospitalisation differs across cities and hospitals and therefore the amount of 'reasonable charges' will also differ. 
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