This study investigates patient awareness regarding room category selection and its impact on treatment cost multipliers in private healthcare insurance claims. Primary data was collected through structured surveys administered to 300 patients with private health insurance across five hospitals. Statistical tools, including chi-square tests, regression analysis, and ANOVA, were employed to analyse the data. Results indicate that only 35% of patients were fully aware of how room category selection influences treatment costs. Regression analysis revealed a strong positive correlation between higher room categories and increased treatment costs (R² = 0.72, p < 0.01). The study concludes that low patient awareness significantly impacts healthcare costs and highlights the need for better communication from insurers and healthcare providers.