To start with, as an insured, when sick health insurance providers know that you will come to them with large claims. And in this situation, they know that they are going to make huge payouts. Therefore, to make this situation work in their favor they negotiate or make deals with hospitals. Once they do this they incorporate the hospitals into their systems.
Basically, this is where the idea of network and non-network hospitals come into play. So, what are network and non-network hospitals? Are there any differences? To get answers to these questions, all you have to do is read on.
What are network hospitals?
Most, if not all, insurance providers have an agreement with specific hospitals. These hospitals are what we call network hospitals. And the advantage of what we call cashless transactions can only be possible with network hospitals. This means when you are admitted to a network hospital for one ailment or the other, you do not have to worry about making payments. This is because your insurance company will bear the cost directly. So far you are in a hospital (network hospital) listed in the agreement of the insurance company.
What are Non-Network Hospitals?
Basically, Non-network hospitals are those that are not listed in your agreement when you are purchasing your health insurance. This means if you receive care at any of these hospitals, you will be responsible for the payment of your medical bills. After you must have done this you can claim the cost by providing proper documentation for your reimbursement.
What are the differences between Network and Non-Network Hospitals?
Obviously from the definition there are notable differences between a Network and Non-network Hospital. However, we still discuss some other key differences, here they are:
- Any time you purchase health insurance from your insurer, network hospitals are always listed in the agreement. Non-network hospitals are the ones not listed in the agreement.
- Network hospitals are those that provide you with cashless transactions. That is, you do not have to pay for your medical expenses. Non-network hospitals, on the other hand, do not provide you with such privileges. You must pay your medical expenses in full. Later on, you can file a petition for reimbursement.
- You do not have to go through lengthy processes or paperwork at Network hospitals. On the other hand, at Non-network hospitals you will have to go through a series of filing and paperwork. This is before you can receive re-compensation.
- In the case of network hospital health insurance cards are sufficient. But, in non-network hospitals they are not.
- At Non-network hospitals you have to first pay all necessary funds before you are attended to. This is not the case at network hospitals. You do not have to worry about arranging cash. Your insurance company has taken care of all for you.
Conclusion:
Network hospitals are those listed in your agreement when purchasing your insurance policy. On the other hand, non-network are those that aren’t. When you critically consider these two, you will discover that having care in a network hospital is the best option. This is because it enables you to receive health care treatment even when you are in financial difficulty. You do not have to go through lengthy processes or paperwork before you can be attended to.