How Does Corporate Health Insurance Work | Loop
In today's work culture, everyone is attempting to create a balance between personal and professional responsibilities.
Managing to live a healthy lifestyle is a crucial component of balancing your personal life with your professional life, and taking certain steps to manage and secure your health can pay off in the long run.
Thus, employers now extend employee health benefits, which include providing the employees with health insurance through group insurance plans, in order to manage and balance the health, productivity, and engagement of their employees.
Check out the top 10 employee benefits you can offer to your employees!
Since these plans are primarily offered in a corporate setting, these policies are often known as corporate health insurance.
Now, let’s look into how corporate health insurance works.
What Is Corporate Health Insurance?
Corporate employee health insurance is a type of employer-sponsored coverage offered by companies and employers to their employees.
In simple terms, it is a kind of group health insurance plan undertaken by the company and the employer that protects them as well as their employees. Hospitalization, critical illness coverage, maternity coverage, and other benefits are included in corporate health insurance plans.
The plans are usually extended beyond just the employees of the company, to cover their immediate family, too, covering the treatment and hospitalization expenses of all the insured individuals in the event of an accident or illness.
Did you know that Corporate health Insurance is also known as Group Health Insurance?
What Do Corporate Health Plans Cover?
Corporate Health Insurances are designed to provide a flexible health insurance plan to your employees, in order to provide them with financial and medical security. Investing in corporate health plans for your employees shows that you care about their general well-being, and are willing to invest in their futures.
Although corporate health plan coverages can vary from provider to provider, they usually include pre and post-hospitalization expenses, emergency ambulance charges, daycare, and more.
Let’s look into what Corporate Health Insurance plans can cover:
1. Added Health Cover:
Employees with corporate health insurance policies have the option of adding additional family to their health insurance plans. This gives them an extra layer of protection and added cover.
2. Pre-Existing Disease Cover:
Some companies offer their employees health insurance cover for pre-existing medical problems, even chronic illnesses and illnesses with risk factors like diabetes, hypertension, and the like, and these coverages and benefits are available to them from day one.
3. Maternity Coverage:
Certain companies offer comprehensive maternity health insurance to their female employees, as well as families and spouses of male employees. These benefits also cover the costs of childbirth.
Furthermore, many organizations cover newborn newborns without a waiting time, under their company health insurance plan.
4. In-Patient Hospital Service:
In cases of accidents or sudden incidents, or surgeries or radiation, the employee of the company, or their dependent, might have to be hospitalized. Corporate Health Insurance covers all such in-patient hospital services at network hospitals.
5. Pre and Post Hospitalization Expenses:
Several medical tests are performed prior to a patient's admission to the hospital, as doctors leave no stone unturned in order to provide the best care possible.
Prior to hospitalization, certain tests, such as blood testing, urine tests, and X-rays, are covered by the company's health insurance coverage.
Similarly, medications, follow-ups, and tests are examples of post-hospitalization expenses that are covered after the insured has been discharged from the hospital.
The duration of post-hospitalization coverage and the types of post-hospitalization therapy covered are determined by the type of policy.
6. Day Care:
Daycare procedures are procedures that do not require extended periods of hospitalization anymore, due to the advancement in medicine and technology.
Health insurance companies have thus now made it possible for employees and their dependents to stay covered under corporate health insurance even for daycare procedures, bypassing the old 24-hour hospitalization rule.
7. Emergency Ambulance Charges:
In case of emergencies, corporate health insurances also cover the charges of ambulances that take the patient to or from hospitals.
8. Domiciliary Hospitalization Treatment:
Domiciliary hospitalization is a benefit in many corporate health insurance plans wherein your employee, or their dependents will be covered even when they are getting treatment at home.
How Does Corporate Health Insurance Work?
Corporate Health insurance work differently from individual health insurance plans, in that the latter is purchased by individuals for themselves (and frequently their families) independently of their employer or companies.
Many people opt for corporate insurance policies for employees since they are typically less expensive than individual plans. Risk insurers help to lower overall healthcare costs by providing incentives such as discounts and specialized goods.
Employers can offer corporate insurance plans with better coverage options than would otherwise be offered because of the cost savings. Employees who choose corporate health receive higher-quality insurance, which helps them protect their long-term health.
So how does corporate health insurance work?
- It generally includes your immediate family, like your parents, spouse, and children.
- Usually, it provides a fixed sum insured amount that covers the cost of hospitalization and/or treatment.
- To increase your sum insured amount you would need to pay an additional premium
- Your policy will be discontinued once you are terminated from that workplace
Are Group Health insurance premiums tax-deductible? Find out here!
Advantages & Disadvantages Of Corporate Medical Insurance Plans
Health Insurance is one of the most important decisions to make for an individual, and just like any other important choice, it is a good idea to go through the pros and cons of corporate medical insurance plans.
1. Coverage for pre-existing diseases:
An important benefit of corporate health insurance is that it covers pre-existing conditions. It means that any medical problem that the employee or their family members may already have is covered from the start with no waiting period.
As a result, these health insurance plans have no waiting time, making them suitable for people of all ages.
2. Wider coverage for ailments at an affordable price:
Aside from not having a waiting time for pre-existing health disorders, corporate health insurance also provides more comprehensive coverage for illnesses, at a lower cost. These plans cover a wide range of health issues, including mental illnesses.
3. Medical and Financial Security:
Employees are a company's irreplaceable assets who contribute to the company's growth. As a result, it is critical to look after their health and well-being. Companies can provide their employees with group insurance health cover, giving them a sense of security and enhancing their productivity.
4. Premium is Taken Care Of:
The company pays the premium for corporate health insurance, and the employee simply has to pay the difference if they want to expand the sum assured or supplement it with another health plan.
1. Room Rent Capping:
Room rent capping means a sub-limit for hospital room rent. In a corporate health plan, the permissible room rent limit is pre-defined. Thus, if an employee chooses a room with a higher rate, they will be responsible to pay for the difference.
2. Coverage Amount:
Most company group medical plans have a limited sum assured premium amount, which, in the event of a major illness, would only cover a percentage of the total expense, not the entire amount.
3. Policy Tenure:
As long as one is employed with the company, corporate health insurance will provide coverage. The policy will be terminated when the employee's employment ends, and that person and their dependents will be without insurance cover until they find new employment.
4. Number of Insured Members:
Because not all business health insurance policies cover an employee's dependent family members, corporate health plans may not be sufficient for the entire family in cases where insurance companies limit the number of dependents covered.
Check out How Livio's HR Saves 99% of Time on Health Benefits With Loop
How can you use corporate health insurance to improve employee health and wellness?
Offering corporate health insurance as an employer is very advantageous to the company.
Investing in the futures of your employees through company health insurance adds financial and medical security for your employees.
2. Cuts the cost of sick days:
Numerous working days are missed each year due to illness, which has a significant effect on a company's bottom lines. While it's true that you can't predict when your employees will become ill, employer medical insurance gives them quick access to high-quality care, allowing them to return to work sooner.
3. Decreases absenteeism:
Absenteeism is a common problem in businesses that goes unnoticed. It has the potential to lower productivity and create a negative workplace culture.
However, with company health insurance in place, your employees are more likely to seek medical attention since they know their medical bills will be covered and they will be able to get back to work fast.
4. Reduce employee turnover and improve employee retention:
When it comes to attracting top personnel, including company health insurance as part of your benefits package helps you stand out from the competition.
At the same time, offering corporate medical insurance makes your current employees feel more valued and cared for, making them less likely to look for work elsewhere, and thus, reducing employee turnover.
5. Increases job satisfaction:
One of the most desired employee benefits is company medical insurance. Providing your employees with superior healthcare through a corporate health insurance plan lets them know that their employer cares about their health and well-being, and boosts their overall job satisfaction.
Sign Up For Your Group Plan With Loop:
Corporate health insurance plans have become somewhat of common business practice, with an increased focus on health as a vital aspect of employees' ability to work productively.
Most employers who provide corporate health insurance coverage choose the insurance company and the policies based on the needs of their employees, as these additional benefits can have a significant impact on employee morale.
Check out this informative guide to explore the latest trends in giving your employees the benefits they deserve.
Affordable health insurance does not have to mean sacrificing service quality. Loop Health offers cost-effective, high-quality healthcare solutions to your employees, and you will always be provided options on corporate health insurance premiums that benefit both you and your employees.
Contact us to know how you can take advantage of group health insurance benefits and get a 2X return on your employee's health! Sign up with Loop Health here, to give your employees medical and financial security, so that they can take care of your business.