Why Claim Settlement Ratio Matters to You ?
Healthcare expenses are rising at an alarming rate. In addition, the number of people suffering from serious health conditions is also rising. Fast-paced and stressful careers, unhealthy eating habits, and lack of exercise are common reasons for increasing illnesses.
Hospitalization and treatment expenses will adversely affect your financial situation. Therefore, securing your financial stability with a health plan is crucial. There are many companies that offer such plans with various features, premiums, and limits. Therefore, you must research different options before making your decision.
(An important consideration while choosing your health insurance service provider is the claim settlement ratio CSR)
This ratio provides information on the number of claims that are settled among the total claims made during a year. It is calculated by dividing the number of claims settled by the total claims received. For example, if an insurer receives 10 claims and settles seven, the CSR is 70%.
CSR will help you estimate the likelihood of your claim being settled in case the need arises in the future.
What is a good CSR?
After understanding CSR, you may want to know what a good ratio is. Generally, a health insurance claim settlement ratio exceeding 80% is considered good. However, it is vital that you do not use this ratio as the only factor to choose your insurer. It is recommended that you read online reviews and ask your friends and relatives about their experiences before you make the choice.
Importance of CSR
You avail a health policy to ensure that you would not have to worry about money in case of a medical condition. The claim settlement ratio for health insurance companies offers a glimpse into the probability of a positive outcome in case you need to file a claim.
The CSR is beneficial to understand the willingness of the insurer to provide the funds when the need arises.
It helps in determining the reliability of the insurance company and the efficiency of settling claims.
CSR and premium amount
It is very important that you are not tempted to avail a health plan that is available at a lower premium from an insurance company with an inferior settlement ratio. Although you may be able to save some money on the premium amount, there is a possibility that your claim is rejected when the need arises. The expenses you will have to incur at such times will be significantly higher than the amount you would pay towards a higher premium.
Paying slightly more to avail a health plan from an insurer with a higher CSR will be beneficial for the longer period. It is recommended you use an online health insurance compare resource to analyze the CSR of various companies to make an informed decision.
If you have not secured your family and yourself with a health plan, get one today. Take a moment to read about the Do's and Don't of Health Insurance Claims