Group Health Insurance Policy: How It Benefits Employers

Are you planning to get health insurance policies for all your employees in the organisation? Well, a group health insurance policy is the right choice. It is a category of insurance plan that provides coverage to a particular group under a similar plan. It provides the same coverage to every member irrespective of their economic status, age, or gender.

The following blog will highlight the key features and types of group health insurance policies and how they benefit employees.

What are the Key Features of a Group Health Insurance Policy?

Let us explore some of the common features of a group insurance policy that can be beneficial for employees.

• Group health insurance provides standard comprehensive coverage to a particular group at competitive premium amounts.
• It provides coverage to all the members irrespective of the number of dependents under the same plan.
• The group admin may get the master policy in the name of the group.
• Group members can enjoy the coverage benefits for the period they remain part of the group under the policy.
• Employers who provide group health insurance to their employees get tax benefits.
• It is also available in other forms, such as group COVID-19 insurance or group travel insurance.
  
  

Benefits of a Group Health Insurance Policy for Employers

A group health insurance policy offers several advantages for employers in different aspects, which we will discuss in detail in the following section.

• Lower Premiums

Group health insurance plans typically have lower premiums compared to individual policies. It is because of the principle of risk pooling and administrative cost savings, as it covers numerous individuals under one policy.

The insurance company distributes the risk of illness and medical or hospitalisation expenses across a larger group. Additionally, administrative costs, such as enrollment, claim processing, and customer service, are streamlined and efficient when handled in a group.

• Tax Deductions

Employers can easily deduct the premiums they pay for group health insurance policies as a form of business expansion. This will help them reduce their potential taxable income.

It reduces the effective cost of the insurance policy, as both employers and employees can claim tax savings under section 80D of the Income Tax Act. The following section allows taxpayers to claim a tax deduction for the total premium paid to the insurance provider.

• Streamlined Claims

A group health insurance policy streamlines claim processes as it centralises them through the employer. It simplifies documentation with digital submission options and utilises pre-approved networks for medical services.

Eventually, it results in a more efficient, faster, and hassle-free experience for employees. This helps the employer to keep their employees happy and positive within the organisation.

• Talent Acquisition

Companies that offer comprehensive group health insurance demonstrate they value employees’ well-being, which sends a positive message to the employees. This can make the company stand out in that particular job market, particularly in competitive industries, which is a key consideration.

Potential employees increasingly prioritise health benefits when they evaluate job offerings. Thus, standard health insurance can become a deciding factor for young professionals to start their careers.

• Improved Employee Morale

In an organisation, a group health insurance policy enhances employee morale, as it offers financial security and peace of mind, leading to a positive work environment. These policies cover all essential medical expenses and reduce financial stress.

Employees are more likely to seek timely medical attention when insurance covers the costs, leading to fewer sick leaves and a consistent workforce. They feel valued and appreciated when they receive health insurance benefits, leading to higher job satisfaction and loyalty.  

• Financial Protection

Group health insurance policies provide financial support through various mechanisms. Primarily, it reduces out-of-pocket expenses, as it covers a significant portion of medical costs, including hospitalisation, outpatient treatments, and surgeries.

This protection ensures employees, and their families are not financially burdened due to unexpected healthcare expenses. Additionally, group plans offer Rs. 50 lakhs health insurance coverage, including pre-and post-hospitalisation expenses. 

• Comprehensive Coverage

Group health insurance policies offer comprehensive coverage because they help employees and their families against unforeseen medical expenses. This type of insurance often includes a wide range of medical services, including surgeries, hospital admissions, and doctor visits. 

Many group plans offer coverage to employees’ children, spouses, and sometimes parents. Thus, it provides comprehensive protection for the entire family. These plans ensure that employees can access the care they need during any unforeseen emergency conditions. 

What is Included Under a Group Health Insurance Plan?

It is essential to understand the different types of health insurance policies. Group health insurance policies provide coverage for medical and hospitalisation expenses during a medical emergency. The coverage policies have certain terms and conditions and certain inclusions. Here, we will discuss the inclusions under this insurance plan:

• No Initial Waiting Period: In a group health insurance policy, you do not need to undergo a waiting period, as in standard health insurance plans.
• Coverage for Pre-existing Disease: If you are suffering from any pre-existing disease, the plan will cover all the expenses incurred during the treatment process.
• Coverage for Critical Illness Disease: If you are suffering from any critical illness disease, a critical illness insurance will cover all the expenses incurred during the treatment process.
• Expenses of Pre- and Post-Hospitalisation: You can avail yourself of coverage for expenses due to doctor’s consultation, medication, or diagnostic tests from 30 days before admission up to 60 days after discharge.
• Maternity Benefits: These policies also include coverage for medical expenses during deliveries, such as normal or C-section deliveries. It also includes both prenatal and postnatal expenses and does not require any waiting period.
• Ayush Treatment: Group health insurance plans also cover medical expenses for alternative treatment methods, like Siddha, Unani, Ayurveda, and Homoeopathy, under NABH.
  
  

Final Words

If you buy a proper group health insurance policy, it will provide you with several benefits, like a floater benefit, where you can add dependents to your family. Additionally, there is no age criterion for buying these insurance plans, along with a cover period of up to 1 year.