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Health Insurance Glossary

Cashless Facility/Hospitalization

Assume a health insurance policyholder becomes ill and is admitted to the hospital for medical treatment. He has incurred some hospital expenses as a result of his hospitalization.The insured can receive the hospital expense in two ways: cashless claim or reimbursement.

Cashless claim or cashless facility/ hospitalization means a claim process where the health insurer will pay the hospital expenses directly to the insurer, and the policyholder will not have to pay the bill out of his own pocket. Only network hospitals can provide cashless claims.

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