There’s been a long-term debate between the benefits of group insurance and individual insurance. Especially after the government's decision to mandate all employers to provide health insurance to their employees, there’s been an increase in inquiries concerning corporate health insurance from a variety of industries. Everyone knows the importance of insurance, but how do you benefit from it? What are the advantages of group insurance?
If you are reading this, you’re probably aware of why it’s a good idea to have good health coverage. If you’re new to the scene, here’s something you should know - a good health cover is like a rainy day fund that’s useful during health emergencies.
If your next question is ‘why should you choose group health insurance over individual health insurance?’ It’s valid, as it’s a big expense for your organization.
So, why should you get a group mediclaim policy for your employees and what are the benefits of group health insurance?
Advantages Of Group Insurance For Employers:
The best part of group health insurance is it offers benefits to both employers and employees. Irrespective of the size of your organization, group mediclaim policy benefits remain the same for all types and sizes of companies barring certain terms and conditions.
Here’s a list of all the benefits of group insurance scheme your organization can enjoy:
1. A healthy employee is a happy employee:
In today’s stressful world, it’s challenging to maintain a healthy lifestyle. Although medical insurance can’t prevent an illness, it can certainly help your employees and their family.
Often employees say that there’s no better feeling than knowing your organization has got their back. And group health insurance is the safety net you can offer for medical emergencies.
Looking after your employees’ health and wellness results in happier individuals, which in effect contributes to a happier workplace. After all, it’s the people who make or break the organization.
2. Savings in taxes:
Employers offering group health insurance to their employees can receive tax benefits under several sections of the Income Tax Department.
As per Indian tax regulations, organizations are exempt from certain taxes if they buy a group health plan for their employees. It’s a win-win situation for the organization as you can save big on tax returns and care for your employees at the same time.
3. Retaining & attracting quality talent:
CTC and company culture are two of the most important factors employees care about while deciding their tenure with an organization. But lately there’s been a shift. Now, other employee benefits are emerging as the third biggest factor while making that decision.
A good health insurance benefits plan helps in tilting the employees’ decision in your organization’s favor. It also makes the talent acquisition manager’s job easy by giving them an edge over the other competitors.
4. Boosting goodwill:
In today’s day and age, it’s important for any company to have an excellent reputation inside as well as outside the organization.
Along with a good company culture and growth rate, a set of compelling corporate health benefits ensures that the overall goodwill of the organization increases in the market.
5. Value for money:
All group health insurance plans are customized which means that the risk and premium amount is shared amongst the employees. This makes it more economical and cheaper as compared to individual health plans.
According to recent studies, group health insurance is said to be 30% cheaper than individual health plans because it covers a large number of people.
Advantages Of Group Health Insurance For Employees:
Firstly, group health insurance makes healthcare affordable for employees and their families. Next, one of the greatest assets for your business is employees. With a group health plan, you can keep them happy and happy employees are productive employees, thus boosting your bottom line. Besides this, here is the list of employee group health benefits:
1. Easy on the wallet:
As compared to individual health insurance or family health insurance, employee health insurance (with good benefits) is available at a cheaper premium. It’s more budget-friendly as the total amount is shared with fellow employees.
2. The right motivation tool:
The right group health insurance plan acts as a great motivation tool for employees. It makes them feel valued, which eventually leads to higher productivity as well as an increase in employee engagement.
3. Health insurance coverage for families:
Managing health insurance policies within the family, like a family floater health insurance plan from different providers can be a hassle. Instead, with group health insurance, your family is included under a single plan. Thus, an employee can support their family.
The amount of coverage and claim varies from policy to policy, but most of the costs, like medicines, daycare, maternity, and more, will be covered.
This is a way to provide financial support to your employees and their family for protection.
4. Easy claim process:
One of the most important benefits of group mediclaim policy is the hassle-free claim settlement process. Individual health insurance policyholders often have to go through a time-consuming process of producing documents, cash upfront transactions, etc. Whereas with group medical insurance, they often have to just submit their hospital bills to the employer and they get a reimbursement.
5. Value for money plans:
Group Health Insurance plans also cover maternity benefits as well OPD (Out-Patient- Department) benefits for preventive care of the employees. OPD mainly focuses on pre-existing illnesses. This, along with added benefits like health and wellness sessions, makes group health plans worth every penny.
6. Covers pre-existing diseases without waiting period:
With individual health insurance, you must wait a certain amount of time before filing a claim if you have pre-existing diseases. This is one of the biggest disadvantages of individual health insurance. In group health insurance policies, this disadvantage is minimized.
From the first day of coverage, group health insurance permits you to file a claim for any pre-existing illnesses. As a result, there are no waiting periods for covering pre-existing conditions in group medical insurance.
Good to know the differences between Small Group Vs Large Group Health Insurance
In a simplified manner, this article gives you ample knowledge about the advantages of group health insurance plans.
As an employer, you can understand why providing health insurance for employees is a necessity, especially in these evolving times. And a group health insurance plan is the best possible way to achieve it because it protects a group of people.
As an employee, group health insurance covers your medical expenses. It also ensures your employer cares for you and your family’s health.
Are you interested in not only learning about the benefits of group insurance policy but also knowing more about group health insurance? Then click here to learn more.
1. What are the top features of group health insurance?
1. Premium discounts: Group health insurance policies may offer lower premiums for employees compared to what they would pay for individual coverage.
2. Flexibility: Some group health insurance policies allow employees to choose from a range of plan options, such as different levels of coverage or different types of health care providers.
3. Dependent coverage: Many group health insurance policies allow employees to add their dependents (such as spouses, children, and domestic partners) to their coverage.
4. Network of providers: Group health insurance policies often have a network of providers (such as hospitals, doctors, and specialists) that are covered under the policy.
5. Wellness programs: Some group health insurance policies include wellness programs, such as gym memberships or health coaching, to help employees maintain their health and prevent illness.
2. Is group health insurance better than individual?
It will depend on your individual needs and circumstances whether group health insurance or individual health insurance is preferable for you. When picking between group and individual health insurance, keep the following things in mind:
1. Cost: For employees who qualify for employer premium contributions, group health insurance is frequently less expensive than individual health insurance. This could not always be the case, therefore it's crucial to weigh both solutions' prices to decide which is most inexpensive for you.
2. Coverage: Compared to individual policies, group health insurance plans often include a greater choice of coverage options, such as coverage for prescription drugs, hospital stays, and preventative care. Individual health insurance plans may offer less comprehensive coverage or charge a larger deductible.
3. Pre-existing conditions: While individual health insurance policies may not, group health insurance policies are typically mandated to cover pre-existing conditions.
4. Eligibility: In order to be eligible for group health insurance, you usually need to work for a business that provides it. Anyone can purchase individual health insurance, regardless of job status.
3. How many types of group health insurance are there?
There are several different types of group health insurance, and the specific types of coverage that are available can vary depending on the insurance company and the policy. Here are a few common types of group health insurance:
1. HMO (Health Maintenance Organization): An HMO is a type of group health insurance that requires you to choose a primary care physician and get referrals for specialty care. HMOs typically have lower premiums but may have more limited coverage and require you to stay within a network of providers.
2. PPO (Preferred Provider Organization): A PPO is a type of group health insurance that allows you to see any provider you choose, without needing a referral. PPOs typically have higher premiums but offer more flexibility and wider coverage than HMOs.
3. POS (Point of Service): A POS is a type of group health insurance that combines features of both HMOs and PPOs. With a POS, you can see any provider you choose, but you may pay more for services outside of the insurance company's network.
4. HDHP (High Deductible Health Plan): A HDHP is a type of group health insurance that has a higher deductible than other types of plans. HDHPs typically have lower premiums but require you to pay more out-of-pocket before the insurance company begins covering your medical expenses.
5. EPO (Exclusive Provider Organization): An EPO is a type of group health insurance that requires you to stay within a network of providers and does not cover services outside of the network. EPOs typically have lower premiums but may have more limited coverage than other types of plans.