Decoding the growing significance of consumable covers in health insurance – Times of India

Over the past few months, healthcare costs for patients infected with COVID-19 in India have shot up. This puts enormous financial pressure on the families of such patients. In addition, out-of-pocket costs for policyholders have increased as the proportion of hospital expenses that includes consumables has risen due to the pandemic. Most insurance companies do not cover the cost.

COVID-19 has taught people the necessity of
health insurance. The virus continues to spread. For now, it is essential to have adequate health insurance. It will provide financial protection for people and their loved ones in the event of a health emergency. Add-ons are also a great way to improve coverage.

Hospitalisation costs in all large private hospitals have increased, mainly due to increased consumption of consumables such as PPE kits and syringes and increased additional costs for sanitation. All hospitals across India have mandated that their staff wear protective gear when treating COVID-19 patients during the pandemic.

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Login to view resultUndoubtedly, such high costs frighten the middle-class and low-income earners. In these times, it is mandatory to take this into account when purchasing health insurance. To meet customers’ needs during these difficult times, insurers like Tata AIG are now offering riders coverage for consumables that they can add to your basic plan.

What are consumables?

Consumables are not limited to medical equipment/aids that must be disposed of after use. Supplies are billed directly to the patient (unless a health insurance policy applies). In 2016, the IRDAI (Insurance Regulatory and Development Authority of India reviewed a list of 199 items that are ‘non-payable’ from the insurer’s point of view. However, this list is for guidance only, and the insurer is free to include or exclude any or all items on this list concerning coverage.


List of consumables

Administrative charges: Birth/death certificate, admission kit, documentation expense, daily chart charges, entrance/visitor’s pass, medical records, discharge procedure, etc.

Housekeeping items: Toothbrush, toothpaste, mineral water, PPE kits, sanitary pads, slippers, sanitisers, masks, combs, shampoo, caps, belts, powder, slippers, baby food, diapers, carry bags, tissue paper, etc.

Room charges: Television, telephone, DVD player, attendant chargers, air conditioner, luxury tax, IV injection, etc.


‘Riders’ to the rescue

It is estimated that these consumables can make up between 5% and 15% of hospital bills, depending on the services provided. People can avoid these costs by considering some extra charges for their health plan. The additional cost you need to pay for the consumables cover is a small percentage of the actual cost of consumables in the long duration of hospitalisation.

Current
trends show that 94% of people with supplies insurance pay a claim, and 83% pay a claim that doesn’t have supplies insurance. This means people with consumable insurance have an 11-percentage point higher claim payout rate than those who don’t.

Furthermore, this number is expected to increase several times as COVID-19 continues for a long time, and the practice of using patients’ consumables during hospitalisation will follow in the long term. So, it’s even more noteworthy to add consumables to people’s basic plan for overall coronavirus coverage.

Thankfully, with supplies becoming a much higher proportion of hospital bills, insurers are now starting to offer rides that can be purchased with a basic plan to cover the cost of supplies on hospital bills. Well-known insurance companies like Tata AIG currently offer such riders.

Insurance companies like Tata AIG understand the importance of covering these benefits and offers consumable benefits as a feature, not an add-on. They cover the cost of all consumables associated with patients’ medical needs.

How to calculate the cost of consumables rider?

Insurance companies provide riders to cover the costs of preventive checkups, home care, health benefits, medical consultations, and diagnostics. The cost of riders differs from insurer to insurer.

Many insurers like Tata AIG offer a
health insurance premium calculator to help you understand the premium you need to pay for your health insurance policy. For example, suppose you want to know the premium you need to pay for the plan after adding the consumables rider; you can check the total amount if it using this calculator. You can also compare different policies and find a suitable one for yourself.

Also, there are comprehensive or standalone health insurance plans that cover consumables without the requirement of a rider. So, check the policy terms and conditions before you buy the health insurance policy.


Porting the Policy

People who already have a comprehensive health plan but still want coverage under the consumables plan can transfer the health plan to another insurer online without paperwork. Porting can help increase coverage, get better features, shorten waiting times for pre-existing medical conditions, and more. Transfers are possible up to 45 days before the policy’s renewal date.


Conclusion

So, before choosing comprehensive health insurance, people should look for a policy covering consumables (especially in COVID-19). This will help you pay for the medical expenses without putting too much burden on your finances. Also, stay calm and choose a health insurance policy after considering the riders and the premium you need to pay.

Disclaimer: This article has been produced on behalf of Tata AIG by Times Internet’s Spotlight team.