How Health Insurance Companies are saving money by providing cashless facility?

Health insurance companies can save money by providing cashless facility in several ways:

1. Negotiating rates with empanelled hospitals:

   Health insurance companies can negotiate rates with empanelled hospitals for medical procedures, which can result in lower costs for the insurance company.

2. Reduced administrative costs:

   Cashless facility can reduce the administrative costs for health insurance companies. They do not have to worry about collecting payments from insured persons or following up on claims for reimbursement.

3. Reduced fraud:

   Cashless facility can reduce the risk of fraud by insured persons. With cashless facility, the insurance company has better control over medical expenses and can ensure that only valid claims are processed.

4. Improved efficiency:

   Cashless facility offers a streamlined payment process, reducing the time taken for claims processing. This can improve the efficiency of insurance companies and reduce their costs.

5. Improved customer satisfaction:

   Cashless facility can improve customer satisfaction, which can result in higher policy renewals and reduced marketing costs for the insurance company.

Overall, health insurance companies can save money by providing cashless facility through reduced administrative costs, improved efficiency, reduced fraud, improved customer satisfaction, and negotiating rates with empanelled hospitals. These savings can help improve the profitability of insurance companies and result in lower premiums for insured persons.