IRDAI advises insurers to complain about errant hospitals

A day after Union Finance Minister Nirmala Sitharaman tweeted about reports of hospitals denying cashless services to COVID-19 patients and asked IRDAI to take action, the insurance regulator has directed insurers to lodge complaints of such malpractices directly with State Governments.

IRDAI stated that it has come across reports of certain network of hospitals charging high rates and insisting on cash payments from policyholders for providing treatment to COVID-19 infected patients despite having cashless arrangement with insurers.

IRDAI, in its latest circular, said, “Insurers are advised to report levying of excess charges or denial of cashless facility to the respective state governments for appropriate action.”

While reviewing cashless requests, IRDAI has told insurers to ensure that policyholders are charged as per the rates agreed to by network hospitals. “Insurers are also advised to ensure hospitals do not levy any additional charges for same treatment other than those rates agreed upon with the insurers,” it added.