A group or corporate health plan is bought by companies for the eligible personnel. This insurance coverage is offered as an employee benefit and in some cases, the benefits may extend to the family members also.
Group plans cover a group of people, such as society members or company employees. The organization may either self-design an insurance plan or opt for a pre-available package offered by insurers.
Group health insurance plans are advantageous to employers as well as employees. Here are five benefits of such plans for the employers.
- Motivate employees
Healthcare expenses are constantly rising due to inflation. When a company offers group insurance, the employees have some kind of financial protection to meet emergency medical expenses. This security plays a crucial role in keeping the employees motivate
2. Retain talent
When an individual is plans to work for an organization, he considers the complete benefits package along with the salary. Therefore, companies that provide corporate mediclaim insurance are able to attract talented personnel. Furthermore, group insurance plans that also cover family members are more beneficial in retaining talented personnel
3. Affordable costs
Most insurance companies offer a competitive and affordable premium on group insurance policies. In most cases, the higher the number of people covered the lower will be the premium paid by the companies for such coverage
4. Improved efficiency
The efficiency of employees is greatly determined by their mental and physical health. Companies that consider the employee health important provide a sense of well-being. Therefore, the employees are happy, which helps in improving the overall efficiency of the organization
5. Tax benefits
The amount paid by the employers as the premium on the group medical insurance policy is eligible for tax benefits.
Health insurance from employers is not only beneficial to the organization but also to the employees. Here are five advantages of such plans for the employees.
6. No medical test required
Unlike individual health insurance policy and plans, availing of coverage under group policies does not require the employees to undertake any medical test. Therefore, all eligible employees are automatically covered under the company-provided health insurance plans
7. Eliminate waiting period
Most insurance companies have a predetermined waiting period during which pre-existing conditions are not covered. Furthermore, certain kinds of surgeries and treatments are covered at the end of the waiting period. However, group plans do not include any waiting period. Therefore, employees and their family members are immediately eligible for the benefits available under the group plans
8. Cost efficient
Employees may have to incur a nominal cost to avail of the benefits under the group insurance policy. In comparison, the premium payable on individual medical insurance plans is significantly higher and may be unaffordable for some people. This ensures every individual is financially protected in case of the need for hospitalization arises due to a medical emergency.
9. Immediate maternity coverage
Almost every group insurance policy covers maternity from the time of enrollment. This means that an employee receives all the maternity benefits under the insurance plan as soon as she joins the organization.
10. Simpler claim
Making a health insurance claim under a group plan is simpler and often quicker. This is because an employee receives institutional support while filing for the claim. Furthermore, if an employee is unable to receive coverage under an individual plan due to current medical condition, a group plan is beneficial in procuring such coverage.
Employers may further extend coverage by including riders, such as accidents and critical illness. Several other optional benefits like dental treatments, ambulance charges, and spectacles cost may be included. Employers must evaluate and analyze various plans to choose one that most appropriately suits the needs of their employees.