Comprehensive health coverage can truly prove to be a life-saver during a medical emergency. As we all know, healthcare is not cheap. A single illness and subsequent hospitalization can end up draining your savings. Health insurance coverage can protect your hard-earned money by paying for the costs of your medical care as per policy terms.
Now, every health insurance policy comes with its own set of inclusions, exclusions, and sub-limits. One of the most common sub-limits is the one placed on room rent. In this article, we will cover what you need to know about the sub-limits on room rent in your health insurance policy.
Meaning of the Room Rent Sub-Limit
The room rent limit is basically the maximum amount up to which your health insurance policy will cover your cost of room occupancy in the hospital per day. This limit might be shown as a fixed sum or it may be given as a percentage of the sum insured on your policy. For instance, the room rent limit might be set at Rs. 4000 per day. Or, it may be 1% of a health insurance policy with a sum insured of Rs 5 lakhs in which case, the room rent limit would work out to Rs 5000 per day. In some cases, the policy might state that the limit is either a percentage of the sum insured or a fixed amount, whichever amount is lower.
Certain health insurance policies also state this sub-limit based on the category of the hospital room. It is very important that you go through the exact specifications of the room rent sub-limit in your health insurance policy so that you know what to expect at the time of filing a claim.
Impact of Room Rent Sub-Limit on Your Health Insurance Policy Claim
The room rent sub-limit impacts the entirety of your claim and not just the coverage you receive for boarding charges in the hospital. This is because the hospital’s charges for medical services can vary between different types of rooms. For example, a doctor’s fee for a basic consultation in a twin sharing room might be Rs 700 per patient. But the same doctor’s fee might shoot up to Rs 1500 for a patient who occupies an entirely private A/C room. Therefore, if you choose a room that fits within the sub-limit stated in your plan, you automatically get better reimbursement on your claim. If you overshoot the amount and go for a costlier room, all of the other expenses incurred in your hospitalization such as doctor’s fees, medical tests, surgery charges, and so on will be impacted. You will end up paying the surplus out of your own pocket.
You may opt-in for a health insurance policy that places no sub-limits on room rent. Or, you can choose to buy a room rent add-on. This add-on can either let you raise the sub-limit on your room rent or simply remove the sub-limit completely. Either way, you would end up saving a lot of money. Remember to keep the costs of treatment at the hospital of your choice in mind when making a decision. After all, room rent and medical care costs can vary greatly between hospitals.
As we can see, the room rent plays a huge impact on the total cost of your medical treatment. So, it makes sense to opt-in for a policy that either offers a good sub-limit for a room rent or simply buys a room rent add-on.