Recently, many fraudulent attacks towards life/health insurances by providing fake health information are in increase. A secured transmisssion of the medical images to avoid misrepresentation of medical report by hacking the medical image sent by the medical practitioner to the insurance provider. In this paper, steganography and encryption techniques are combined to protect the patient confidentiality, and increase the security in medical images. In existing approaches, steganography or water marking are used to secure the medical images, but these techniques cannot assure robust security on transmission. Hence, a combined steganography to incorporate the patient’s details and advanced encryption techniques to secure the transmission is required. An approach for encryption and steganography using discrete non-linear system that provides least correlation for secured transmission is proposed. Henon and Chebyshev maps are the discrete non-linear systems adopted in the process. A database of 100 X-ray images is considered for performance evaluation. The metrics such as entropy and correlation coefficient for encryption and metrics such as PSNR, MSE, and elapsed time for steganography are evaluated. It is observed that the combined Henon and Chebyshev map gives better results for encryption and the proposed steganography gives better results than LSB approach. The combination of steganography and encryption will give robust security for the transmission. © IAEME Publication.