A group health insurance policy covers a small to a large group of people under a single plan.
With this health insurance plan, employers can protect their employees with basic coverage so that their personnel do not face financial difficulties during medical emergencies.
Hence, the policy helps business firms meet their corporate social responsibility.
This way, both employees and employers get benefits from the policy simultaneously.
Know more about this policy and how it benefits employers and employees.
Features of a Group Health Insurance Plan
Following are some of the features of this group/corporate health insurance policy:
- All the covered personnel can enjoy cashless hospitalisation.
- On top of this hospitalisation coverage, the employees get coverage for several critical illnesses.
- The insurer covers ambulance expenses along with the cost of oxygen, medicines, x-rays, anaesthesia and medical equipment.
- The corporate health insurance policy also includes dependents (family members) of employees as well.
Note: These are only some basic coverages. You need to check the policy brochure to understand the coverage in detail.
Benefits of a Group Health Insurance Policy for Employees
Here is how a group health insurance policy can benefit you if your employer offers this group insurance policy:
● Hassle-free Claims
Due to the cashless benefit facility, you do not need to pay upfront to undergo the treatment procedure. The insurance provider settles medical bills with the hospitals directly.
Further, the insurer often takes special care that you get on-priority medical treatment.
● No Waiting Period for Pre-existing Diseases
In a general health insurance policy, you may need to wait for up to a certain number of days, to cover medical expenses for pre-existing diseases like high blood pressure, diabetes, Thyroid, etc.
However, a corporate health insurance policy gives you freedom from waiting period for this category of disease. You can claim the policy benefit from the very first day.
● Coverage at a Negligible Premium
Generally, employers contribute most of the premium amount, whereas a small amount is deducted from your monthly income.
Some employers even ensure that their personnel pay zero premiums for this health insurance policy. As a result, this policy saves their employees’ expenses on health insurance premiums.
● Maternity Cover
The group health insurance policy also lets you enjoy the benefit of maternity cover at zero additional cost. Insurance providers cover all the expenses related to pregnancy, delivery, termination of pregnancy, etc.
● Coverage for Family Members
Employers also let you cover your family members under this corporate health insurance. This way, you can avoid buying separate policies for all your dependents, reducing much of your monthly expenditure.
In this regard, you need to ask your employers to know about the maximum number of family members you can add to this policy.
Benefits of a Group Health Insurance Policy for Employers
Here are some of the major benefits you can obtain from the group health insurance policy if you are an employer:
● Tax Benefit
You can enjoy the tax benefit under Section 80D of the Income Tax of India. The tax deduction applies to the total amount paid towards the premium.
● Loyalty of Employees
Employees feel valued when they see that you care for the prospective financial hardships that a health emergency can cause.
By covering them with this group health insurance plan, you can significantly enhance their loyalty to your company, thereby improving organisational productivity and employee retention.
● Improves Organisational Reputation
Covering all employees under a group health insurance policy can be your one step towards the objective of meeting corporate social responsibility. As a result, this policy enhances your brand position in the market and can help you attract employees.
Things to Keep in Mind While Buying a Group Health Insurance
You need to keep the following aspects in mind while opting for a group health insurance plan:
● Inclusions and Exclusions
You need to undergo the inclusion and exclusion criteria for the plan properly before buying it. This will help you understand how beneficial the policy will be for both you and your employees.
● Premium Amount
You should ensure that the premium amount is not excessively high, considering the coverage you will get under it. In this regard, you can compare several insurance companies to understand which one can give you the maximum benefit at the minimum budget.
● Employee Contributions
You also need to decide whether you will pay the premium amount fully, reducing the employees’ financial burden.
If you want your employees to share some of the amounts, you must decide the percentage of the premium they will have to bear.
● Deductibles of the Plan
You also need to check if deductibles are applicable on health insurance claims.
It reduces the policy prices indeed, but insured individuals need to pay a certain percentage of the claimed amount to bear medical expenses.
By choosing a policy without deductibles, you can ensure that your employees do not pay any amount from their pocket during medical treatment.
In conclusion, an organisation can include all their professionals under a group health insurance policy and ascertain that they get financial protection to meet emergency medical expenses.
This goodwill gesture not only reduces employee turnover but also enhances the company’s reputation in the market.