It depends on circumstances and laid down rules and regulations of the insurance company/organizations, and the amount of actual costs vis a vis the bills.
For example, if the employee faces such illness during his working hours while working for an employer, he can get such reimbursement.
In the case of Town hospitals and Govt hospitals the rates are fixed, uniform and standardized whereas Corporate hospitals charge huge amounts for the same treatment.
What is proper charge has to be decided by the organisation as they have such a chart of uniform expenses for all issues in hospitalization.
Not a legal query, and any colleague or liad down nor or concerned can provide such information.
In case of medicines, reimbursement is 100%