Given the times we live in today, health insurance is a must. It is a protective tool that can secure your employees financially in case of any unforeseen health contingencies. A robust group insurance plan also helps companies reduce employee absenteeism and positively earn the loyalty and trust of the workforce.
In addition to this, employer-sponsored health insurance plans are known to boost employee engagement and work productivity by a large margin.
Several studies have noted the imminence of group plans and have rightly noted the reasons more and more employees now demand it at the workplace.
Further, the importance of company-sponsored health insurance plans has increased due to its legal repercussions. Post the pandemic, the Government of India has mandated the provision of group health insurance to employees.
This means that providing group health insurance is no more a choice but a compulsion for organizations.
If you’re clueless about employer-sponsored health insurance or simply want to know more about this impactful employee perk, we’ve rounded up all the information you need.
What Is An Employer-Sponsored Health Insurance Plan?
Employer-sponsored health insurance plan is a standard policy that covers every employee of a company. You can look at it as a master program that covers the entire workforce and extends the benefits of medical coverage in case of health emergencies.
Also known as a group health insurance plan, it offers a host of benefits to both the employer and employee. While employees are aided with free/subsidized and quick support in case of health contingencies, employers stand to benefit from increased employee goodwill and higher efficiency within the workforce.
In the case of employer-sponsored insurance, the employer is responsible for choosing the plan and deciding the coverage it entails.
While employer and employee share the premium costs, in some instances, the health benefits are provided entirely by the company as well.
To this effect, employer-sponsored health insurance you can group employer plans into two main categories – fully sponsored health insurance and partially sponsored health insurance.
In the former, the employer bears the entire premium costs, whereas, in the case of the latter, a part of the premium costs is borne by the employee that is deducted from his/her salary on a recurring basis or as a lump sum.
Let’s find out why employer-sponsored health insurance plans are a better choice.
Why Employer-Sponsored Health Insurance Plans Are Better Than Individual Health Plans?
Employer-sponsored health insurance plans can be far better than individual plans. The notion that group plans can be costly and an added burden for the employer is far from true. They in fact hold a host of advantages for both the employer and the employee.
For employers, group health insurance plans act as an employee perk. It can lead to better engagement within the workforce. Employees on the other hand receive quick support in case of hospitalization. This also helps companies arrest downtime by a large margin and improve overall work productivity.
In addition to the above, employers can also earn tax credit on the premium costs of health insurance coverage as opposed to individual health insurance. The premium so paid is deductible as a perquisite under the Income Tax Act, 1961. Group plans thus work as a tax-saving tool for employers.
For employees too, group health insurance plans offer several benefits. Affordable healthcare tops this list. Employees can also get coverage for dependents as part of some group plans.
Further, pre-existing disease coverage, access to quick support, and more are the other benefits of an employer-sponsored health insurance plan.
However, is group health insurance an added cost for the company? Let’s find out.
What Is The Cost Of Employer-Sponsored Health Coverage?
If you checked out the group health insurance vs individual health insurance article above, you’d know that employer-sponsored health coverage is way more economical than individual coverage. The policy premium is divided among many employees and therefore the cost of group plans is lesser.
However, the cost of employer-sponsored health insurance depends on several factors such as the number of employees, the level of coverage offered, and the type of plan chosen. It also varies according to the group or cluster you wish to cover.
If an employer aims to cover the employees and their dependents, the premium costs could be higher. Similarly, if the employer wishes to cover independent contractors or contingent employees, the cost of the group health insurance can further increase.
Employer-sponsored health coverage depends on the choices and customizations the employer makes. With Loop, you can get premium value starting as low as Rs. 499/- per employee.
The employer and employee can add top-ups on the basic health coverage at an additional cost or as required.
Loop’s Affordable And Custom Employer-Sponsored Health Insurance Plans
We understand the need of employers to procure group health insurance at affordable costs, without compromising on the level of coverage. That’s why we have come up with a range of employer-sponsored health insurance plans that organizations can choose from.
Our group plans come with a range of features such as no waiting period, round-the-clock doctor assistance, wellness benefits, and more. Employees can further access their policy details within a matter of clicks via the dedicated Loop App.
At the same time, we ensure that managing claims or details of the health coverage plan isn’t a hassle for you either! That’s why our insurance schemes come with 24/7 claims support, a cohesive dashboard for one-point access, and a dedicated medical team for easy primary care.
Want to get started with employer-sponsored health insurance? Our experts can help!