InsuranceFinancial Glossary
Cashless Hospitalization
Definition
A health insurance feature where the insurer directly settles the hospital bill with the network hospital, so the policyholder does not need to pay upfront (except for non-covered items). The insurer and hospital handle the paperwork between them.
Why It Matters
Cashless claims are faster and less stressful than reimbursement claims, especially for large bills. However, cashless is only available at network hospitals. If the nearest quality hospital is not in your insurer's network, you will need to pay and file for reimbursement later.