GGroup Health Insurance Policy for Small Business – Coverages, Features, Benefits, Exclusions, Claim Process, Eligibility Criteria, Quotes

Employees are an organisation’s most valuable assets. Employers should take utmost care of their employees to make sure they are well looked-after and they remain motivated. One of the ways to take care of employees can be to provide them with a Group Health Insurance Policy (also known as a GMC Policy).

How does Group Health Insurance Policy for Small Business Work?

A Group Health Insurance Policy provides coverage for hospitalization expenses incurred by the Employees on account of illnesses or injuries during the Policy Period. The Policy covers all employees of an organization under a single Health Insurance Plan, thereby making it much more affordable than a regular Health Insurance Plan. A Group Health Insurance Policy for Small Businesses works in the same way as a Corporate Health Insurance Policy, but it is customized for a smaller group of employees. The Policy provides Health Insurance coverage for employees and their family members under a common Health Insurance Plan.

What are the coverages under a Group Health Insurance Policy for Small Business?

A Group Health Insurance Policy for Small Business provides coverage for the following:

Hospitalisation Expenses: A Group Medical Insurance Policy provides coverage for Hospitalisation Expenses if the Insured Person is hospitalized for more than 24 hours in a hospital for any injury or illness.
Coverage for Pre and Post-Hospitalisation Expenses: A Group Health Insurance Policy for Small business provides cover for Pre and Post-Hospitalisation Expenses for 30 and 60 days respectively.
Coverage for Daycare Procedures: Group Mediclaim Policies also provide coverage for Daycare Procedures which do not require hospitalisation of more than 24 hours.
Maternity Coverage: Group Health Insurance Policies also provide coverage for Maternity Expenses with a Sub Limit without any waiting periods.

What are the benefits of a Group Health Insurance Policy for Small Business?

Attracting Better Talent: Small Businesses are always short of talent as they are unable to match the salaries paid by the bigger companies. Health Insurance Coverage provides employees with peace of mind and make them feel safe. Employees and their Family members can rest assured that they are well taken care of in case a medical emergency strike.
Lower Employee Attrition: In addition to attracting top-quality talent, a comprehensive Group Health Insurance Plan also helps in retaining top employees and makes your business stand out from the crowd. Since employees are aware that their medical expenses are covered, they would think twice before leaving the company. Higher employee retention leads to lower attrition, which means lower investments for training new employees and lower expenses incurred in finding newer employees. This makes the Return On Investment on a Small Business Group Health Insurance Plan even more attractive.
Cost Effective: Premiums for Group Health Insurance Plans for Small Businesses are lower than premiums for Individual Health Insurance Plans with similar features. As a result, an employer can provide Health Insurance coverage to employees at a much lower cost than providing each employee with an Individual Health Insurance Policy. You can read our blogpost on the difference between a Group Health Insurance Policy and an Individual Health Insurance Policy to know more.
Wider Coverage: A Group Mediclaim offers wider Coverage with lesser waiting periods v/s an Individual or a Family Floater Health Insurance Policy.
Ability to Customise Coverage: Another advantage of a Group Health Insurance Policy for Small Business Owners is that the coverages can be customized depending on the needs and the budget of the employer. Employers decide the Sum Insured, Room Rent Limit, Co-Payment Limits and Sub-Limits so that the premiums for the Group Health Insurance Policy remain within the budget.
Mid-Term Policy Addition and Deletion: A Group Health Insurance Policy allows for additions and deletions of members during the midterm of the Policy. In any organization, there are new employees who join and existing employees who leave the organization. A Group Health Insurance Policy allows for addition and deletion of members during the midterm of the Policy, thereby making the administration of the Insurance Policy quite simple.
Tax Benefits: The Premiums paid for a Group Health Insurance Policy are a tax-deductible expense for the Employer and can be used to reduce the tax liability. Additionally, the claim amounts received by the employees from the Group Health Insurance Policy are not taxable.
Pre-Existing Diseases Coverage: Group Health Insurance Policies offer Pre-Existing Diseases coverage without any Waiting Periods while a regular Health Insurance Policy has a Waiting Period of 3-4 Years before providing coverage for Pre-Existing Diseases.
Maternity Coverage: Group Health Insurance Policies offer Maternity Coverage without any Waiting Periods while a regular Health Insurance Policy has a Waiting Period of 3-4 Years before providing coverage for Maternity Expenses. This is a very useful feature for Female Employees and spouses of Male Employees

How many employees are needed to purchase a Small Business Group Health Insurance Policy?

Some Group Health Insurance Companies offer a small business Group Health Insurance Policy for as low as 7 employees while other companies have a requirement of 10 to 15 employees.

How much does Group Health Insurance Policy Cost for Small Business?

A Group Health Insurance Policy for a Sum Insured of Rs2 lakhs per employee and 7-10 employees costs Rs35,000 to Rs40,000. The Cost of Group Health Insurance Policy for Small Business is very reasonable and depends on the following factors:

Number of Lives: The number of lives (employees + family members) covered under a Group Mediclaim Policy is the most important factor determining the cost of Group Health Insurance Policy. It is possible for Small businesses to get affordable premiums to suit their budget.
Parental Coverage: If Parents of Employees are covered under the Policy, premiums are usually higher as older people are more prone to Claims.
Policy Coverage: The features of a Group health Insurance Policy also determines the cost of a Group Health Insurance Policy. For Instance, a Group Health Insurance Policy with No Room Rent Capping and No Co-Payment will have a higher per life premium than a Policy with Room Rent limit and Co-Payment Limit.

How to choose the right Group Health Insurance Plan for my Small Business?

There are more than 20 Insurance Companies in India offering Group Health Insurance Plans for Small Business. It is time consuming and a lot of effort to compare Group Health Insurance Plans amongst the various Group Health Insurance Providers. But employers should compare the following features before purchasing a Group Health Insurance Policy for small business:

Sum Insured Limit: Assess the employee age profile, pre-existing disease to determine the appropriate sum insured limit for employees and their family members.
Room Rent Limit: Room Rent Limit is one of the most important features of a Group Health Insurance Policy. If the Room Rent exceeds the limit specified under the plan, the entire claim will be subject to proportionate deduction under the Policy. Thus, the plan should specify a Room Rent Limit which covers the average room rents in city where the company is based. Otherwise, if the Room Rent Limit is lower than the Actual Room Rent, the employee has to bear a substantial portion of the medical expenses out of his own pocket.
Co-Payment Clause: Co-Payment Clause specifies the % of medical expenses that the employee has to bear out of his own pocket. Employer should opt for a Group Health Insurance Policy which strikes a balance between the cost of the Policy and the amount of expenses that the Insured has to bear out of his own pocket in case of a Claim.
List of Network Hospitals: An Insured can avail Cashless Claim Settlement at the network hospitals of the Insurance Company, meaning that the employee will not have to bear any expenses out of his own pocket. An Employer should select an Insurance Company which has a wide list of network hospitals ensuring that the employees have a high chance of availing Cashless Claim Settlement.
Pre-Existing Disease Coverage: Group Health Insurance Policies offer Pre-Existing Disease Coverage from Day 1, which is a big advantage. Employers should ensure that there is no Waiting Period for Pre-Existing Disease ensuring that employees can avail reimbursement for Pre-Existing Diseases as well.
Maternity Coverage: Group Health Insurance Policies provide Maternity Coverage without any Waiting Period. Employers should select a Group Health Insurance Plan which offers Maternity Coverage as this is a big financial support to female employees and spouses of male of male employees.

Get Best Quotes for your Small Business Group Health Insurance Policy with Qian!

It is time-consuming to purchase an appropriate Group Health Insurance Policy given the varied options available. Hence, it is advisable to take the help of an experienced Group Health Insurance Broker like Qian Insurance when purchasing a Small Business Group Health Insurance Plan.

Qian Insurance Broking was founded in 2016 with the aim of helping small businesses with their Group Health Insurance Requirements and can assist you to compare Plans from 20+ Group Health Insurance Companies. Their experienced team will help you select the best Group Health Insurance Plan and also assist in Claim Settlement for employees. Qian has a track record of serving 100+ small businesses for their Group Health Insurance Policy requirements having settled more than 98% claims with great satisfaction and speed. Regardless of size, a Group Health Insurance Policy is a great way to provide quality Health Insurance Coverage for your employees. If you are looking to purchase a Group Mediclaim Policy for employees, you can email us at insurance@qian.co.in or call us on 022-35134695. We would be glad to assist you.

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