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How embedded finance services is different from insurance services Solving the issues of medical expenses through embedded finance provides several healthcare options for consumers to choose from

By Chris George

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Receiving a massive health care bill can be jolting for anyone. What if paying for healthcare was made as easy as just tapping a card, scanning a QR code, or paying through your phone and receiving instant notifications for the transaction.

However, the question arises of who is providing this instant payment services. This might be offered as reimbursement funds from your employer, low-cost/no-cost loans, and health insurance providers who at times are instrumental in completing these payments.

Understanding the concept of embedded finance

Embedded finance is one of the most popular trends in the fintech space today especially after the pandemic. The idea of embedded finance is disrupting nearly all sectors including the healthcare space. Embedded finance is perhaps the quickest way of integrating financial services to any revenue model. In healthcare, embedded finance helps facilitate transparent pricing and offers multiple payment options for patients.

The use of embedded finance has created a strong chain, where player's needs are fulfilled, and a lubricated money flow is created for the healthcare provider simultaneously. Embedded finance simply enables users to avail medical treatment by installing QR codes at a doctor's clinic or merchant's center that has a certain pre-approved credit limit for patients' medical treatment. The concept also helps patients channel their saving in a more structured and planned manner.

The lack of transparent pricing further adds to the delay in going ahead with healthcare procedures. By providing nearly close to zero-interest EMIs to users embedded finance in the healthcare sector helps offer better preventive medical options. Additionally, it also facilitates transparent pricing and offers multiple options to consumers. Thus, embedded finance in many ways empowers its users. The incorporation of embedded finance also helps make the healthcare sector profitable by decreasing costs.

Embedded finance in healthcare

Embedded finance is widely used in retail and related sectors. However, this is fast changing and being integrated in many other industries. The healthcare sector is rapidly accepting the concept of embedded finance. Industry players have integrated embedded finance majorly in three ways- B2B2C, partnering with healthcare providers, and B2C platforms.

At present, most Indians pay for their healthcare expenses from their pockets or borrow from friends and family. According to NITI Aayog (government of India)'s, March 2021 report claimed that Indians have spent a jaw-dropping $72 billion on healthcare expenses. This is one of the major contributing factors why Indians are dragged below the poverty line year on year. Nearly 3 out of 4 Indian's don't have a healthcare insurance or are under insured.

When we think of healthcare expenses, most of the times we consider the expenses shouldered during hospitalization and for critical care. We fail to recognize miscellaneous payments such as buying medicines, routine blood tests, visits to our general practitioner, skin care treatments, assisted pregnancy, hair treatment, etc. All such medical expenses collectively fall under elective procedures' or 'The OPD category.' Often, consumers pay for these procedures from their pockets. Leveraging the concept of embedded finance can help bring down the out-of-pocket expenditure by providing well suited healthcare plans.

Providing instant funds for healthcare expenses will positively impact the accessibility of healthcare services and help bring down the poverty level in India.

Additionally embedded finance is a win-win situation for both, the user and healthcare providers. Users can seek better medical assistance and healthcare providers can offer better facilities. This inversely helps bridge the gap of unaffordability in the healthcare sector and paves the way for new avenues in this industry and widens the growth trajectory.

How embedded finance services is different from insurance services

Health insurance policies rarely cover these OPD and elective procedures. Quite often several of these non-medical procedures are paid for from our pockets.

Imagine paying for these elective procedures' or even the OPD category through a hassle-free payment option. The integration of technology into the healthcare sector has proved to be very beneficial for both healthcare providers as well as the patients. By partnering with financial organizations like banks, payment gateway providers, lenders, etc.

The concept of embedded finance in the healthcare space has made the consumers life better and easier. It brings together fintech and medtech companies to help fulfill the needs of consumers. This amalgamation also helps healthcare providers function smoothly.

Solving the issues of medical expenses through embedded finance provides several healthcare options for consumers to choose from. Healthcare providers can also offer better treatment options. This results in increased revenue for healthcare providers. Similarly, for consumers it means a sigh of relief, as they are enabled to make quicker decisions- in terms of which hospital and treatment to opt for without fearing how they would pay for these expenses immediately. Therefore, embedded finance creates a win-win situation for all by enabling quick and efficient financial services.

Chris George

Co-founder & CEO, QubeHealth

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