blogs
Text Link

Heading

Text Link

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

This is some text inside of a div block.
mins
This is some text inside of a div block.

Quick Summary

Want to know about the pros and cons of group medical insurance? Let’s find out! In this article, we cover:

  1. Contributory Plan
  2. Non-Contributory Plan
  3. Difference between an employer-based health insurance plan and general health insurance.
  4. Pros and cons of group health insurance

There has been an age-old debate between employer-based medical insurance and individual health insurance. However, the two cannot be pitted against each other as they come with their own set of advantages and disadvantages.

Before diving into the pros and cons of group and individual health insurance cover, let us first understand the main types of employer-based health insurance plans in detail:

[#types-of-employer-based-health-insurance-plans]Types Of Employer-Based Health Insurance Plans[#types-of-employer-based-health-insurance-plans]

While there are various segments to group health insurance plans, they can mainly be divided into two categories i.e., Non- contributory and Contributory. Each plan offers health benefits to employees, with the key distinction being around the financial contribution made towards it. Let’s find out the difference between the two below:

1. Contributory plan:

In this type of medical insurance plan, the insurance premiums are paid by both the employer and the employee. The contribution can either be equal or in a pre-decided percentage ratio. The employee’s contribution is usually deducted from his or her salary at regular intervals.

2. Non-contributory plan:

In this type of plan, the group members or employees do not need to pay the premium to avail of the policy benefits. When it comes to paying the premium, the employer bears the financial costs solely.

How Does An Employer-Based Health Insurance Plan Differ From General Health Insurance?

An employer-based health insurance plan covers a group of people i.e., the employees of an organization, and is also called a group health insurance plan. On the other hand, general health insurance or individual health insurance plans covers only one person i.e., the policyholder.

In a group health insurance plan, the premium is either paid by the employer fully or by the employer and the employee together. As opposed to this, the premium under an individual health insurance plan is paid entirely by the policyholder.

An employer-based health insurance plan benefits both parties. Employers can ensure better employee health and earn tax benefits, whereas employees can enjoy coverage for pre-existing ailments with no or low load of premium payments.

At the same time though, an individual health coverage could provide a better sum insured, no-claim bonus, and few other benefits over a group health insurance plan. Let’s understand the advantages and disadvantages of employer-based health insurance a little more in detail below:

Quick read: Here’s a detailed comparative analysis between employer-based health insurance and individual health insurance.

What Are The Pros And Cons Of Group Health Insurance?

More and more employers are now opting for group health providers as part of their comprehensive employee welfare plan. This is due to the correlation of employee wellbeing with the company’s overall revenue/performance and the demand for a fitting benefits package from the country’s resource pool.

Further, providing group health coverage to employees is mandatory and companies are required to offer it as per the law. Despite the growing reliance on group health insurance coverage, however, its advantages, and disadvantages are little known. Let’s understand the pros and cons of group health insurance below:

Top 5 Advantages Of Group Health Insurance

1. Holistic coverage for employee health

Group health insurance is an instrument to ensure overall employee wellbeing. It covers pre-existing ailments which are not covered by individual health insurance and enables employees to seek financial cover in such circumstances.

Yes, I Want Employer Health Insurance

2. Tax benefits

Employers can earn lucrative tax benefits with group medical insurance. The premium payments in the case of employer-based group health insurance are deductible under the Income Tax Act, 1961. This ensures huge savings for companies.

Read more about are group health insurance premiums tax deductible?

3. Better market goodwill

Providing a comprehensive group insurance cover can help employers attract the right talent from the market. It enables companies to up their reputation as an employee-friendly organizations and thereby retain and pool talented resources.

4. Compliance with law

Providing group insurance enables companies to stay compliant with the law. This comes after the Indian Government’s mandate which made it compulsory for all commercial and industrial establishments, offices, and workplaces to offer comprehensive health insurance policies to employees.

5. Preventive healthcare

Providing group health insurance isn’t just about aiding employees in case of a medical emergency. Modern-day insurance plans also entail preventive health care measures and reward employees for healthy habits. This helps companies prevent instances of sickness and improve overall employee efficiency.

Read more about the advantages of group health insurance here.

Top 5 Disadvantages Of Group Health Insurance

1. Added cost

Group medical insurance could be an expensive affair for employers especially if they want to ensure comprehensive coverage for employees with added features. However, Loop ensures this isn’t the case. Our group insurance plans are available at competitive rates and come with several added benefits. Reach out us now to know more cost-effective health insurance plans.

2. Dependency on employer

From the employee perspective, group health insurance could mean complete dependence on the employer in case of health contingencies. However, certain insurance companies and employers offer employees the option to switch from group insurance to individual insurance to remedy this.

3. Lack of control for employees

Group health insurance plans are controlled by employers. They choose the features, and the coverage and employees don’t get a say in the plan or scheme so selected. This lack of control could be a deterrent for employees.

4. Complications in management

Group health insurance could also mean added pressure for the company in terms of managing employee claims or providing the right support to them or their family members in critical circumstances. However, with Loop’s comprehensive plans, companies can ensure 24/7 help for employees in case of health contingencies and more.

5. Insufficient coverage

Although this varies from organization to organization, the typical employee health plan cover is anywhere between INR 2 lakhs to INR 5 lakhs. Sometimes, this cover is not sufficient. Especially, if you’re including your family members in the policy.

Make The Right Choice

Group health insurance and individual health insurance plans come with their own set of advantages and disadvantages. A group health insurance, in addition to being mandatory, also entails a long list of benefits for employers.

To ensure the advantages of employer-based group health insurance reach both the employer and the employees, Loop has devised a range of comprehensive health offerings. We have a panel of medical advisors that are available round the clock to attend to employee health emergencies and a host of wellness schemes to avail of as well.

Additionally, our health insurance plans allow employers to save up to 30% on group medical insurance. To know more about our customizable and comprehensive health offering talk to our experts today!

written by
This is some text inside of a div block.
linkedin iconinstagram icontwitter iconfacebook icon
See more articles by the Author
thumbs up icon

Transparency

Crisp, clear & straightforward communication that ensures everything is laid out upfront.   

quote icon

Better pricing 

Quotes that saved Livio’s team nearly 2 lakhs along with the advantage of Loop’s added benefits. 

person icon

Add-on benefits 

Useful doctor consultations on the go with responses within 47 seconds, discounted lab tests, and dedicated medical advisors.

doctor icon

Dedicated team

From account managers to claim support to doctors, Loop provides clients with a quick-responding dedicated team.

Button Text

Quick summary

Health and wellness is important for employees because, for companies to succeed, they must have employees who are healthy and fit. Healthy employees are:

  • More productive
  • Don’t fall prey to health issues
  • Incur fewer healthcare costs
  • Reduced absenteeism
  • Less likely to suffer from stress and fatigue
  • Not face mental and physical burnout

As you read this blog, you’ll learn more about:

  • Why is wellness important in the workplace?
  • Why are employee wellness programs important?
  • What are the benefits of promoting employee health and wellness?
Select Health And Wellness Benefits
Facts to Consider
Purchaser
Purchaser
Purchaser
Facts to Consider
This is some text inside of a div block.
This is some text inside of a div block.
Features/Company Loophealth Prudent Anviti
Purchaser The organization purchases group health insurance for its employees. Individuals purchase individual insurance policies for themselves and their families based on personal needs. Individuals purchase individual insurance policies for themselves and their families based on personal needs.
Duration of the policy Group health insurance is directly related to the terms of employment, it ceases to exist when the employee is no longer part of the organization. The policyholder is the sole decider of the policy's duration. The policyholder is the sole decider of the policy's duration.
State Health Insurance Market Share In Percentage
Maharashtra 29%
Tamil Nadu 11%
Karnataka 10%
Delhi 8%
Gujarat 6%
Rest of the states 36%
State Health Insurance Market Share In Percentage
Maharashtra 29%
Tamil Nadu 11%
Karnataka 10%
Delhi 8%
Gujarat 6%
Rest of the states 36%
Block Quote

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

daldfaklsjfklasjf

daldfaklsjfklasjf

daldfaklsjfklasjf

daldfaklsjfklasjf

daldfaklsjfklasjf

daldfaklsjfklasjf

Essential HR Policies
Download

Essential HR Policies

Keep up with the modern workplace and employee needs with these essential policies

Hacks To Automate HR Tasks
Download

Hacks To Automate HR Tasks

End repetitive tasks and enhance productivity, efficiency and boost your HR efforts.

Employer Branding Playbook
Download

Employer Branding Playbook

Your roadmap to effectively implement winning strategies to retain the best employees!

Secrets To Attract Talent Beyond Compensation
Download

Secrets To Attract Talent Beyond Compensation

Bring innovation to your hiring and win over candidates beyond salary.

Employee Wellness Trends for 2022
Download

Employee Wellness Trends for 2022

Easy to implement and actionable solutions that will take your workplace to the next level!

Workplace Culture Playbook
Download

Workplace Culture Playbook

The 7-step roadmap to successfully build an irresistible workplace

Employee Well-being Guide
Download

Employee Well-being Guide

Wellness tips that effectively help you deal with burnout and its underlying stress.

Workplace wellness playbook
Download

Workplace wellness playbook

Effective and easy to implant strategies to reduce absenteeism

Employee Engagement Handbook
Download

Employee Engagement Handbook

4X your employee engagement with these 5 proven steps

How Livio's HR Saves 99% of Time - 2
Download

How Livio's HR Saves 99% of Time - 2

Livio's HR Manager stumbled upon a Loop ad on Facebook and now, their health insurance and benefits are on autopilot!

The ultimate guide to boosting your healthcare ROI
Download

The ultimate guide to boosting your healthcare ROI

The ultimate guide to squeeze the most out of your employee healthcare costs

More people work, less paperwork
Download

More people work, less paperwork

The ultimate HR toolkit to save a ton of your time.

5 actionable steps to increase ROI on Healthcare
Download

5 actionable steps to increase ROI on Healthcare

5 actionable steps to squeeze the most out of your employee healthcare costs

Employee Wellness Handbook
Download

Employee Wellness Handbook

A quick and easy-to-read guide for improving your employee wellbeing efforts

Employee healthcare handbook
Download

Employee healthcare handbook

A quick and easy-to-read guide for implementing employee benefits that work for you and your organization

Retaining Your Best Employees
Download

Retaining Your Best Employees

A quick and easy-to-read guide for retaining your best-performing employees

Guide to best employee benefits
Download

Guide to best employee benefits

Explore the latest trends in giving your employees the benefits they deserve.

 Setup a successful wellness program like a pro
Download

Setup a successful wellness program like a pro

Achieve a happier, healthier workforce who gets your business the results you need!

Beat remote workplace challenges
Download

Beat remote workplace challenges

Achievable quick fixes for impressive results

Recruit, Hire & Onboard like a Pro
Download

Recruit, Hire & Onboard like a Pro

The best templates on how to recruit & onboard the best-fit candidates for your organisation

Ensure a safe return to work
Download

Ensure a safe return to work

A step-by-step checklist to prepare you & your employees for reopening your office.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.