It was a temporary relief for insurance policy holders after all the corporate hospitals announces to resume the cashless mediclaim facilities.

Max Healthcare Institute CMD Pervez Ahmed told that by Friday, cashless mediclaim facilities will be restored on short term basis and TPAs (Third Party Administrators) will revert to the hospitals on the package rates.

TPAs are the facilitator between insured and insurer and many corporate hospitals like Apollo, Max, Medicity and Fortis have already submitted their package rates of different treatment covered under mediclaim policies to TPAs.

There is a Raksha TPA which handles the business of northern region for insurers, and to make the things simpler, it has included the treatment rates for 42 medical procedures that cover all the expenses incurred during the treatment of the disease in the hospital.

The prices tagged by Raksha TPA have already received willingness from Ganga Ram and Medicity to come on the board and discuss the matter along with other high end corporate hospitals.

Dr Pervez Ahmed said that still 30-40 days are required to conclude the final rate structure. In order to arrive at a particular rate many factors should be taken into account, like there should be categorization of the hospitals on the basis of super specialty medical centers and premiums.

Corporate hospitals have been accused of over billing and therefore they have been removed by the PSU insurers from their network of PPN and they still have to join the chain of hospitals providing cashless mediclaim facility. At present, around 450 hospitals across the country have joined cashless network.

Further Ahmed said that hospitals are categorized in three categories like A, B, C and each segment is further divide in to sub categories and therefore packaged rates will be determined on the basis of categorization of hospitals.

The basis on which categorization will take place are the infrastructural facilities provided by the hospital, although the common procedures have standard rates and this would help the health insurers to cut down losses by up to 25%.