Should You Pick GHI Or Medical Reimbursements?

Team LoopTeam Loop

A guide to help you choose between group health insurance & medical reimbursement.

A guide to help you choose between group health insurance & medical reimbursement.

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May 25, 2021
Should You Pick GHI Or Medical Reimbursements?
Should You Pick GHI Or Medical Reimbursements?

Your employees are the most important stakeholders of your organization. No matter the size of your company or your employee strength, keeping them safe and secure is of utmost importance. Safety brings a feeling of confidence in your employees, which enables them to perform better at work and contribute whole-heartedly towards the growth of your company. Moreover, owing to the Covid-19 situation, most job seekers today look for employers who offer financial perks and securities in addition to a salary.

There’s always a dilemma employers face when it comes to choosing between group health insurance and medical reimbursements. Gathering some clarity will help you gain some perspective and make a worthwhile decision.  

Group Health Insurance Vs. Medical Reimbursements  


What is it?

Group health insurance - Group or company health insurance is a type of health cover for workers or employees.

Medical reimbursements - It’s an arrangement where employers reimburse a portion of the health expenses the employee incurs.

Who pays?

Group health insurance - An organization purchases it, so employees either pay very little or nothing towards the insurance costs.

Medical reimbursements - Since it’s not a prerequisite for employers, they reimburse only a small amount if the employee meets all the conditions. So employees bear a hefty part of the expenses.  


Group health insurance - Group health insurance offers protection against hospitalization expenses, pre-existing conditions, consultation with specialized doctors, maternity cover, etc. with no waiting period!  

Medical reimbursements - Medical reimbursements offer no protection and only give employees reimbursements for actual expenses incurred on medical bills.


Group health insurance - There’s the availability of additional add-ons like critical illness cover, OPD, etc. which makes it a wholesome package at nearly no costs!

Medical reimbursements - While an employee gets coverage for several things, they bear a majority of the costs which may be expensive.

Offering group health insurance plans is the best way to make your employees understand that you care about their or their family’s well-being. The Covid-19 pandemic has taught employers and companies one major lesson - enabling financial security of their workforce. 

Why Is Group Health Insurance Better Than Medical Reimbursement?

  • Hassle-free cover: While medical reimbursements seem like an easy way to support your employees, it involves numerous, tedious processes like verification of submitted bills by the employee, their approvals, and so on. On the other hand, group health insurance omits the complexities involved with reimbursements. It’s a straightforward process with no hassles.  
  • More for less: You only need to invest a small sum and the returns are big with group insurance where employees are satisfied and give their 101% towards their work which increases your output and profits. Whereas with medical reimbursements, the maximum amount you can reimburse your employees is very small which hardly provides any financial relaxation with the rising medical costs.
  • Cashless cover goes a long way: Many employees are not equipped with cash for emergency medical expenses. In this situation, they can benefit immensely from the cashless cover your company insurance policy offers.
  • Avail Tax Benefits: Employee health insurance reduces your company’s tax liability.

  • Employees stay motivated and secure: Your employees’ emotional health is as important as their physical ability to work and innovate. By lending a helping hand through a group health insurance, you are bound to keep them motivated at their job.
  • Decreased attrition rates: When your employees feel safe and supported at your company, they would not want to leave, which in turn brings down your employee attrition rates.
  • Improved efficiency levels: Company health insurance enables your employees to avail the benefits the minute they join your organization. Individual health covers often take a lot of time before they set in.

  • Various benefits: Individual health covers may skip benefits like maternity cover, pre-existing diseases and so on which are covered in group insurance policies offering your employees comprehensive coverage.
  • No waiting period: Unlike retail insurance, group health insurance waives off any waiting period so employees can get coverage from day one.

Beating The Ifs Of Life

Should employers opt for group insurance policies? Definitely! Group insurance brings with it a wide array of benefits for your employees, especially in a world that’s hit by an unforeseen pandemic. Medical expenses cause huge debts and stress to employees, so offering financial aid to your employees through group insurance is your first step toward winning their trust in you and your company. After all, your employees are the true drivers of your dreams and you definitely need their complete cooperation in your road to success.

Interested in learning more about Group Health Insurance? Click here

Should You Pick GHI Or Medical Reimbursements?
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Team Loop
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