Healthcare cash plans are very helpful in an emergency, if used correctly. A person doesn't care about small medical expenses, but regular dental or eye check-ups can add up quickly as big expenses. These plans provide you money for dental, optical, or other treatments and have been proven to be very useful in the long run. They can also enable you to pay the expenses of several alternative therapies.
If you have a health plan, you need not fork out cash for expensive insurance premiums. It can be considered a way of budgeting for medical and healthcare expenses that are incurred every month. It includes the periodical payment of a specific amount of money to a company, which provides the healthcare plan. One has to pay the agreed amount every month, which adds up in his account with the company. The money that is collected can be availed of, if you come across any medical emergency like a treatment, childbirth expenses, and surgeries. After the expenses are incurred, you get a cash refund for all or some expenses, in such a way that, all or most hospital bills can be covered with these plans.
Healthcare Cash Plans and Private Medical Insurance (PMI)
These plans are similar to Private Medical Insurance (PMI). The difference is that healthcare cash plans are normally inexpensive, and one has an assurance of at least getting a part of the amount back at the year-end. People can avail both plans together, as they collectively could be great for financial help in case of major treatment procedures and surgeries. Moreover, premiums are not heavy on the pocket and the amount can be claimed by a simple process.
Companies Providing These Plans
The companies that provide these plans are mostly charitable or non-profit organizations, which came into existence during the 19th century, to help workers pay their medical expenses. The profit that these companies earn does not get transferred to the shareholders, but goes to a charitable fund.
Who can Subscribe to these Plans?
The age for subscription is normally between 16-65. If the age of the person is more than 65 years, he is not eligible to join, but can still be covered with the policy, if he is an existing customer. The only condition that is put forward in most of the plans is that, one can't change the plan after reaching an age of 70.
How to Enroll in a Healthcare Cash Plan?
The joining process is very simple, as there is an option to apply online or download a printable registration form, fill it, and mail it to the company that provides the healthcare plan. You would, however, be asked for details on your previous medical records as they would not cover any of your pre-existing conditions. They may not accept your application if you are a professional or semi-professional sportsman. You need to check the terms and conditions of the plans to ensure if they would really help you in the future.
Procedure to Claim
After enrolling in a plan, most of the companies would require you to wait for three months before you place a request for a claim. So, you are not insured for three months after you subscribe to a plan, which prevents you from placing a claim.
Claiming is an easy process wherein you need to download a printable form from the company's website, fill it, attach it with the necessary medical or hospital receipts, and send it to the company. They will then ensure the genuineness of the claim, and send a check or transfer the appropriate amount directly to your bank account. A majority of the providers process the claims in just two days. Claims are seldom rejected as long as you abide by the rules and regulations of the policy and don't make any fraudulent claims. For some plans, you may need to claim within six months of the treatment.
Before you subscribe to a healthcare cash plan, ensure that the provider is genuine and reputed, and also, see a certified doctor for treatment, which would later help you to claim the benefits.