The Hidden Cost Of Hospital Consumables And How Add-On Covers Can Help

Consumable items such as gloves, syringes, masks, dressings, and personal protective equipment (PPE) kits can add up to a considerable amount of out-of-pocket expenses while you are in the hospital. However, they may not be covered under your standard health insurance policy. So, you may have to pay 10-15 per cent of your hospital bill from your own pocket.

Some Policies May Cover Consumables As An Optional Feature 

Some health insurance products provide consumables coverage as an optional feature. “This enables the insurance consumer to select the consumables benefit included in their health insurance based on their individual needs. the hospital stay,” says Dinesh Mosamkar, senior VP, consumer underwriting, TATA AIG General Insurance.

The policies that authorize reimbursement for these expense items should be taken into consideration by an individual when deciding what type of health insurance coverage to purchase. “Consumers should, therefore, purchase only those products that have reimbursement for consumable expenses as one of their covered expenses, even if this is an optional benefit that will require an additional premium,” says Mosamkar.

You Can Also Add A Consumables Add-On 

Also, by including a consumables add-on in a health insurance product, those excess expenses may be reduced significantly, providing a greater level of financial protection at the time of treatment.

“Yes, most insurers offer a consumables rider (popularly known as a claim shield or safeguard). For a nominal extra premium, usually five to 10 per cent, the insurer covers for around 199+ consumable items that are generally excluded,” says Siddharth Singhal, business head, health insurance, Policybazaar.com.

Consumable add-on riders can thus help significantly limit out-of-pocket expenses, particularly for expensive hospital stays (including very expensive stays) where the cost of consumables can quickly add up. Add-on riders provide the greatest value to policyholders who want to know how much their claims are likely to be and want fewer surprises when they are discharged from the hospital.

“However, consumers need to be sure to thoroughly review each proposed add-on rider to ensure they get real value out of the add-on rider and not simply token value,” says Arun Ramamurthy, co-founder, Staywell.Health.

Irdai Pushes Consumables Standardisation

The Insurance Regulatory and Development Authority of India (Irdai) has taken steps toward greater standardization of health insurance policy terms, including the costs such as consumables.

Although complete mandatory inclusion may restrict flexibility with regard to available product options, common definitions along with clearly defined prices and minimum disclosure practices could help individuals to better understand and compare health insurance products.

Additionally, standardizing the definition of consumables will result in fewer disputes when individuals make claims and will create an environment of trust between individuals and their insurers. “Any regulatory response to consumables would be wise to provide both consumer protection and the ability for insurers to innovate and manage the rate of medical inflation sustainably,” says Ramamurthy.