A company’s employees are covered by a group or corporate health insurance policy acquired by the employer. A group health insurance plan, one of employers’ main employee benefits packages, may occasionally include the employees’ family members.
The benefits of these insurance policies are clear for both companies and employees. Employers may benefit from the plan’s reduced cost, tax advantages, motivated staff, and improved retention rate.
Factors to Consider
Choosing the right insurance plan is essential to ensure you can make the most of the investment. Here are the factors to consider while buying a group health insurance plan:
- Policy’s Coverage – Coverage refers to the insurance the insurer offers each employee under the Corporate Health Insurance Plan. You may or may not require specific insurance coverage based on the size of the business and the employees’ ages. For instance, the policy must include personal accident coverage if all your staff are single and travel frequently. Similarly, consider offering maternity benefits if most employees are married. A few of your workers may be seniors who need critical illness insurance. So you can also purchase insurance coverage based on the staff’s age groups.
- Claim Settlement Ratio – This ratio is the proportion of claims the insurer settles to those filed during a given year. A ratio above 90 is typically seen as a positive ratio because it indicates a higher likelihood that your claim will be approved. In addition to the claim settlement percentage, you should also see if the insurer’s claim settlement procedure is swift and simple so that your workers may work without interruption during difficult times.
- Wellness Advantages – Individuals focus more on mental health and well-being due to greater awareness following the Covid-19 pandemic. As a result, several insurers provide proactive health insurance plans that help employees live healthier lives and provide financial support if they need to be hospitalized. These policies include advantages including free health examinations, discounts on laboratories, gym memberships, free nutritionist consultations, savings on medications, teleconsultation for mental health, and the provision of free wearable gadgets that can track employees’ health, among other things.
- No waiting period and minimum rent for a room – Verify that there is no waiting period in the insurance for pre-existing conditions to be claimed. If it does, you will have to wait for the specified amount before filing a claim. This is because it is challenging to understand, frequently resulting in fewer claims when settling disputes. Choose a policy that, ideally, has no room rent limits, and if it does, carefully study the policy terms.
- Network hospitals’ List – The insurer will provide you with a list of network hospitals when you purchase a health insurance plan. These hospitals have a relationship with the insurer, enabling them to offer the insured the advantage of cashless hospitalization. One advantage of receiving care from a network hospital is quick alleviation, and making last-minute plans to raise money to pay the medical bill is unnecessary. Network hospitals’ vitality derives from relieving any additional financial stress in the event of an adverse circumstance, easing the strain. As a result, the employer needs to ensure the list of network hospitals in a group health insurance plan is accurate.
Employees’ productivity rises with a health plan, which also helps them live stress-free. Additionally, it increases employee retention and tax savings for the firm. When purchasing corporate health insurance, the abovementioned ideas will ensure that you give your workers the most benefits possible while also paying less for the premium. It is a good idea to compare several insurers based on the cost, client feedback, claim settlement ratio, etc. Encourage your staff to offer timely feedback on the services so you can gauge how much value they are receiving.