Insurance companies may like to deal with hospitals and third-party administrators (TPAs) more cautiously after going through the latest data on medical inflation.
According to data analysed by the Insurance Regulatory and Development Authority (Irda), the claim severity is 83 per cent higher in case of cashless mediclaim than reimbursement in the last two years.
Cashless mediclaim allows policyholders to get treatment without paying for it at the hospital. The insurance company settles the bill directly with the hospital.
The report said the overall claim severity had increased by 27 per cent for 2009-10 as compared to 2008-09, while circulatory disease had gone up by 56.99 per cent.
The intensity of claims varies according to the disease, reflecting the complexities of treatment. Similarly, claim severity increased in all cases, except for endocrine, eye, infections and respiratory diseases, the report said.
There were, however, no major variations in the average number of days of stay in hospitals under cashless and reimbursement heads for settlement of claims.
The report found that in case of above average hospitals, the severity of claims was 70 per cent higher than the industry average.
The report said the medicine cost to surgery charges varied in case of reimbursement and cashless systems.
Medicine cost was also higher in cashless mediclaim.
