Hospitals Overcharge With This, Beware!😱
Hiiii
How have you been? But first, (if you’re from Maharashtra) please tell me you were responsible enough to cast your vote yesterday!
What I was up to: I’ve been running around a bit, juggling between work and home since my father-in-law had to be hospitalized for a short while around Diwali and he’s still recovering. Aside from that, we’re all busy at FinCocktail doing tons of back-end work to relaunch our website, for you guys.
Meanwhile, Niyati had an edge-of-the-seat conversation with Dhaval Ajmera for our podcast this week discussing Real Estate's Role in Wealth Creation. Dhaval is the director of Ajmera Realty & Infra India Ltd., and a second-generation entrepreneur with over 20 years of experience spearheading real estate business, so he had a lot to share with us about the real estate business, its importance in the current market, sustainability and contribution to the economy along with financial implications. You can watch it here:
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Market ka haal: Indian stock market benchmark indices Sensex and Nifty 50- plunged by a percent each in trade this morning amid weak global cues although the markets finally broke their losing streak on Tuesday, reflecting ongoing caution among investors!
Global tensions played a role, with Ukraine's first ATACMS missile strike raising geopolitical concerns. 🌍 Meanwhile, China's decision to scrap export tax rebates from December 1st hurt sentiment, pulling down the Nifty Metal index despite its earlier gains. 🏭
Though bottom-fishing sparked a bounce, profit-booking ahead of Maharashtra elections and weak Q2 results kept gains in check. The market’s mood still looks cautious, balancing risks with recovery opportunities. But let’s face it, it’s been a rough few weeks and the volatility isn’t going anywhere soon. So, the only way out is through!
Humara Gyaan: Being in a hospital is already an overwhelming experience, and dealing with medical expenses on top of that only adds to the stress. Now, I’m sure Niyati and I have convinced most of you by now to get health insurance, but even with coverage, there are still many situations where you may have to pay upfront or exceed the cashless cover limits. Plus, for minor treatments that aren’t covered under your policy, you might find yourself covering the cost out-of-pocket, right?
One significant expense that often gets overlooked is the room rent. Upon admission, hospital room rent is a major cost, and many hospitals include it in your final bill. Sometimes, this charge even appears when it shouldn’t.
The GST Council has declared that a 5% GST will be applied to hospital rooms (non-ICU) with a daily room rent of ₹5,000 or above, and this has been in effect since July 18, 2022. Intensive Care Unit rooms are exempt from GST, by the way!
Now, while 5% might sound like a small percentage, it can add up quickly over a few days in the hospital. If you’re admitted for multiple days, that extra 5% could result in a substantial amount being tacked onto your bill. 💸
In the long run, this 5% GST could even contribute to higher premiums. Insurers may need to absorb these extra costs, and that could mean a rise in your insurance premiums down the line.
Even if you run a business and can claim input credit for GST, it will not apply to medical bills. Unfortunately, medical expenses don’t fall under the GST credit system, so you’ll have to bear this cost yourself.
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A penny saved is a penny earned, after all! Double check your hospital bill before you pay. If you are charged unnecessarily, don’t hesitate to insist that the hospital revise the bill. The answer is always no if you do not ask. 💰✨
Here’s to knowing where your money is going🍻
Sayali❤️
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