In 2024, group health insurance policy for employees will play a vital role in reducing the financial burden of employees when faced with covered medical risks. In a world with rising concerns over health and health risks, and increasing medical inflation has worried people across the globe, tools like travel insurance enable covered employees to live their lives with confidence and peace of mind without worrying about their finances.
This article will explore where and how group insurance is beneficial and how both employees and employers can benefit from having group health insurance for employees at their organisation.
What is a group health insurance policy for employees?
Group health insurance is specially designed plans that provide comprehensive health insurance coverage to all employees or members of an organisation in a single customisable and cost-effective policy. Under this policy, employees can avail of financial protection by claiming settlement when getting medical treatment.
As an employer, a group health insurance policy for employees is an obvious choice. This is because, currently, when all professional organisations have been mandated to provide health insurance to their employees, organisations with at least seven members can offer standardised group medical coverage for all employees at a cheaper and more convenient price.
How does group employee insurance work?
Group employee insurance works by dispersing health risks among many individuals, thus providing health insurance at a cost-effective price compared to purchasing an individual health insurance plan for each member. In addition to just coverage for hospitalisation and medical treatment, employees with group health coverage are all offered supplemental coverages such as dental, vision, preventative diagnostics, etc.
How is employee group insurance beneficial for employees?
Corporate health insurance benefits are not just limited to the employees covered under it. It is also a precious tool for employers who wish to develop their organisation further and build a brand around it. By having an employee-centric structure in the organisation, employers can attract top talent and retain loyal employees. They can also build a safe and productive work environment with boosted morale, reduced absenteeism, and employee turnover.
Here are some of the key benefits of offering group insurance policies for employees:
- Reduced financial liability and out-of-pocket expenses for employee
Group health coverage under employee insurance plans provides financial protection and reduces the financial burden on employees when getting medical treatment for covered risks. For example, if an employee suddenly has an accident and has a fracture, the cost of treatment and hospitalisation would be considerable. Still, with accident coverage, employees can get treatment without having to dip into savings.
- Coverage for maternity and newborn expenses
Group plans also provide coverage for maternity and newborn expenses, reducing the direct cost for employees.
- Zero-waiting period
Depending on the specific policy opted for, group health coverage requires a zero-waiting period for most diseases, allowing employees to receive medical treatment without having to wait for the waiting period to end.
- Coverage for spouse and dependent children
Group policies enable employers to provide coverage to the employee's spouse and dependent children. This reduces the employee's financial burden and allows them to live life without worrying about dependents.
- Coverage for pre-existing diseases
Group policies allow employers to provide coverage for pre-existing diseases, enabling eligible employees to receive treatment without dipping into savings.
- Coverage for preventative diagnostics
Several group plans also enable employers to avail preventative diagnostics from day 1, allowing the employees to be aware and informed about their current medical condition and prevent future ailments.
- Availability to the premier and varied hospitals and healthcare as a network for cashless claims
Group insurance allows access to premier, top-rated healthcare services with cashless claims while also allowing treatment at non-network hospitals through reimbursement claims.
- Require no pre-policy checkup for members
Under group insurance, covered individuals do not need pre-policy check-ups and delay getting the policy.
- Affordable and cost-effective when compared to individual policies
While the employer might partially or wholly sponsor group policies, the premium charged is considerably cheaper and more affordable due to the nature of corporate medical insurance.
Conclusion
Whether you are an employer looking to provide health insurance at your organisation or an employee being offered employee group insurance at a new or existing organisation, group health insurance is highly valuable and beneficial for all stakeholders. Group plans enable employers to provide standardised coverage to their employees at an affordable price without compromising on the comprehensiveness and benefits it offers. They also allow employees to avail of insurance that is sponsored by the employer, thus reducing financial burden and out-of-pocket expenses when availing medical treatment in addition to several other benefits.
All of these make group health insurance policy for employees beneficial and effective.
