Why You Shouldn't Depend on Cashless Health Insurance for Emergency Hospitalizations? What Is Cashless Claim? Before the introduction of cashless facilities, you had to pay for hospitalization costs out of your own money before submitting an insurance claim for those costs. A reimbursement claim is what this procedure is known as. This forced families to always have some cash on hand to pay the hospital bill, receive the necessary medical care, and then submit an insurance claim for reimbursement. To delve into the details, follow the link and read more here.