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Image by Luis Melendez

Cashless Letter

A cashless letter is a "cashless authorization letter" or "pre-authorization letter." It is a document issued by an insurance company or a third-party administrator (TPA) to a policyholder or beneficiary.

Cashless letter authorizes the insured person to receive specific medical treatments, services, or procedures at a network healthcare provider without having to pay for those services.

 

The insurance company directly settles the bills with the healthcare provider.

 

Cashless letters are commonly associated with health insurance policies, especially those offering cashless hospitalization benefits.

Image by Martha Dominguez de Gouveia
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