Technical skills and capabilities of the workforce are the greatest assets for an employer. A group health plan is an insurance contract that shields the employees against various medical contingencies. In such policies, the employer finances the health insurance for the employees. Generally, group health insurance products provide a large cover that is shared by the employees in an organization.
If you are an employer, opting for a group medical insurance policy can reap rich dividends for your company. Such benefits may include:
A motivated workforce
According to recent estimates by the National Health Accounts, in India, 61% of the healthcare expenditure is financed out of pocket. In 2017, such massive expenses drove 55 million Indians into poverty. In this status quo, corporate health insurance is considered a perk by many employees. By insulating them from the rising medical expenses, you will not only command their higher respect and loyalty but also inspire them to contribute more to the interest of the organization.
Reduced attrition rates
You can buy group health insurance policy as a tool to retain talent. With their healthcare expenses and that of their families covered, employees will have a sense of security while working for your company. Such a conducive atmosphere will make your workforce a breeding ground for excellence and innovation.
Low coverage cost
With employee health insurance products, you can achieve an economy of scale. As such policies are purchased in bulk to provide total coverage to the workforce, the premium payable is usually on the lower side.
Tax benefits
While paying the premium for the group health insurance plan, you are entitled to avail tax benefits for the same. The premiums for such policies qualify for tax exemption under Section 80D of the Income Tax Act, 1961.
Expansion of coverage
You can also opt for adding riders like critical illness and accidental insurance to your group medical insurance policy. It will further augment the scope of the plan.
However, if you are an employee, group health insurance again has much to offer. You can avail:
No preliminary medical check-ups
For availing individual or family floater policies, you are required to undergo medical examinations. The calculation of premium depends on their results. However, as an employee covered by a group medical insurance policy, you can bypass them. You are eligible for coverage right from the induction into the plan.
Coverage for pre-existing conditions
For individual or family health insurance policies, you will have to wait for a certain period before being covered for a pre-existing ailment. The waiting period may range from 2-4 years. This limitation is absent in group health insurance plans.
Comprehensive maternity cover
Family floater plans cover maternity expenses only after a certain waiting period. However, with group health policies, you can enjoy such benefits right after your enrolment. These plans also extend the coverage to include your newborn immediately. For floater plans, this is generally done 90 days after birth.
Wider coverage
An employee health insurance policy offers you a full spectrum of coverage with lesser exclusions. The scope of such plans is broader than individual health insurance products.
Point to remember
You are entitled to the benefits under the group health insurance plan until you are with the organization. The cover is void once you resign.
Availing the best health insurance product is essential to living a healthy and safe life. You can choose from a wide range of health insurance plans available in the market today. One should choose a health insurance policy based on their specific coverage requirements.
