When looking for a travel insurance policy, one important aspect you may be looking for is the option for cashless pay or direct billing.
Cashless pay or direct billing allows you to receive care without having to pay a large sum upfront and out-of-pocket. But it cashless pay something that can be guaranteed?
What Is Cashless Pay?
Cashless pay means that the medical facility you are visiting offers something called direct billing. This means that the hospital or doctor bills your insurance plan directly, so you don’t have to pay anything up front at your visit.
This can be essential for those with a visitors insurance plan who want to minimize the amount they have to pay out-of-pocket if they need to seek medical care during their trip.
Can Cashless Pay Be Guaranteed?
Many agents’ websites claim that their travel medical insurance plans are cashless or direct payment plans. This would mean that the traveler wouldn’t need to pay upfront and that the medical provider would bill the insurance company.
However, when it comes to travel medical insurance plans, there is no guarantee for cashless transactions or direct pay. The billing process depends on the service provider – the insurance company doesn’t control it.
Most big hospitals and doctors directly bill the insurance company. However, in some cases, a patient may be required to pay upfront for their services.
For expensive medical services like surgery or hospitalization, the providers bill the insurance company directly. For routine services (mostly outpatient services) like general doctor consultations, you may be required to pay directly either in full or as per the applicable policy’s deductible or coinsurance.
Why Cashless Pay Can’t Be Guaranteed in Travel Medical Insurance
Cashless pay isn’t something that can be guaranteed when it comes to travel medical insurance. Here are some reasons why:
- Travel medical insurance plans are short-term emergency medical insurance plans and require claim submission and reimbursement.
- Different providers have different billing practices. They may or may not work with all insurance companies.
- Travel medical Insurance coverage is not as familiar to doctors or hospitals as mainstream domestic plans are. So, unless the bill amount is big, the hospitals or doctors won’t usually want to utilize their time to find out who and where to bill.
Filing a Claim Is Required Regardless of Payment Method
The Insurance company will pay for eligible covered expenses. Even though the billing process is at the medical provider’s discretion, a valid claim for a covered service would be paid by the insurance company, whether the bill comes from the doctor’s office or is sent by the traveler.
The insurance industry is regulated and insurance companies have to comply with the regulations. As long as the claim is in adherence to the policy stipulations, it should be paid.
To learn more about travel medical insurance and how it works, visit our knowledge center or connect with our Customer Success Team today.
