Health

COVID 19 and Health Insurance Riders

The COVID 19 pandemic has affected the health insurance industry in a multitude of ways. One of the main impacts of COVID 19 has been a direct increase in the average hospitalisation costs. As per a report by a financial publication, hospitalisation costs at major private hospitals have gone up by over 20% since the pandemic. The main reason behind this sudden increase in hospital costs is the increased use of medical consumables such as masks, PPE kits, sanitisers as precautionary measures against COVID 19.

When it comes to health insurance, consumables are generally not covered by the policies. Many health insurance policyholders have had to pay a part of their hospital bills out of their own pocket due to not having coverage for consumables. Before COVID 19, consumables were just a tiny portion of a patient’s hospital bills and consumable expenses didn’t amount to much. However, since the beginning of COVID 19, the use of consumables such as masks, PPE kits etc, has increased to such an extent that it can comprise up to 25-30% of your total hospital bills.

Do you Need Insurance Riders? 

In a situation where consumables are making up a significant amount of hospital bills, the financial burden to pay off these bills has also increased for patients and their families. Fortunately, many health insurance companies have started coming up with specific riders or add-ons that can help you take care of the medical costs arising out of consumables.

Insurance companies have introduced a rider that covers consumables and costs about 5% of the basic insurance premium amount. It should be noted that these riders need to be purchased by the policyholders on top of their health insurance plans. These specific riders cover the cost of consumables such as masks, gloves, PPE kits, etc. At a time when COVID 19 is still active across the country, these insurance riders can prove to be highly valuable.

These riders covering consumables are not the only riders available in the market. Most health insurance companies also offer other riders such as the accidental death benefit rider, maternity rider, critical illness rider, permanent disability rider, etc. These riders serve different purposes and provide financial cover against a wide variety of medical circumstances. However, you might be confused when it comes to choosing one among the variety of riders.

How to Choose Riders?

Specific health insurance riders can save you a ton in medical costs. Medical riders are a good way to get enhanced protection at a fraction of the price of insurance premiums. Add-ons such as a critical illness rider or a permanent disability rider can prevent you from being broke due to excessive hospital bills. However, choosing which riders to purchase can be a confusing decision. You can also use online tools like a health insurance premium calculator to determine how much your insurance policy will cost with all the riders you choose.

On the other hand, there is also a chance that you may never need to make use of these additional riders. These riders can also become a financial burden as the premiums on your health insurance will go up with each extra rider that you purchase. In this situation, you will have to consider your and your family’s needs and choose the correct riders accordingly. At the time of buying your health insurance, you should research all the additional riders available and carefully choose those that you feel you might need in the future. While riders may end up increasing the cost of your insurance plan, they can also protect you financially under unexpected circumstances.

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