Today the employment market is extremely competitive. Finding and retaining talented employees has become extremely difficult. Big companies and well-funded startups are fighting to recruit and retain talented employees. The problem is even more acute for small businesses which can’t afford to pay high salaries.
In such an environment, offering a comprehensive health insurance policy for employees can be one way to retain employees.
Group Health Insurance is one way that employees can offer comprehensive healthcare to employees while also minimizing expenses. If you are a small business owner looking to provide affordable healthcare for your employees, a group mediclaim policy for employees might be the best option. A comprehensive group health insurance plan offers peace of mind to employees that they are well taken care of in case some unforeseen medical emergency strikes.
This blog will explore why group plans are an excellent solution and how they work with other aspects of payroll processing, such as taxes and benefits administration.
What Is Health Insurance?
Health insurance is a way of offering partial or complete reimbursement for medical expenses. The policy can be issued to one person, such as an individual health plan, or it can cover multiple people.
Group Health Insurance Policies are generally purchased by employers on behalf of their employees.
A Group Health Insurance Policy offers advantages for both the employer and employee. Group Health Insurance Policies are also referred to as group mediclaim policy for employees, and they can cover many employees.
How Does Group Health Insurance Work?
A Group Health Insurance Policy is usually purchased by an employer on behalf of the employees. A Group Health Insurance Policy insures a whole group of company employees together for their health insurance requirements. Additionally, a Group Health Insurance Policy can be extended to cover family members (Spouse and Parents) as well as dependent children by paying an additional premium.
Group Health Insurance Policies can also be customised with respect to coverages and limits.
Benefits of Group Health Insurance Policies
Group Health Insurance Policies is a win-win for employees as well as employers. Some of the benefits of group health insurance plans for both, employers and employees are listed below:
Advantages of Group Health Insurance Plans for Employers
1. A well-motivated workforce is crucial for an organisation’s success
One of the keys to an organisation’s success is a well-motivated workforce. Employees aware that their medical needs are taken care of with a comprehensive health insurance policy will have mental peace and satisfaction. A well-motivated and a happy workforce has better productivity and thus contributes to an organisation’s success. Moreover, companies can use a group health insurance policy as a perk to attract talented new employees.
2. Group Health Insurance are cheaper than Individual Health Insurance Policies
One of the biggest advantages of Group Health Insurance Policies is cost savings as compared to individual health insurance policies as the premiums for group health insurance plans are cheaper than individual health plans with similar benefits. The reason for lower premiums is that the risk is spread across a larger pool of insured individuals.
As a result, employees can avail comprehensive health insurance at affordable rates through their employers.
3. Tax Savings for Employers
Apart from employees who can avail health insurance at affordable rates, employers can claim tax- deduction towards premiums paid for the group health insurance plans. Thus, premiums paid towards group health insurance policies can result in big tax savings for employers. This is a big advantage from an employer’s perspective and makes a Group Health Insurance Policy a mutual win-win for both parties involved.
You can read our detailed blogpost on Tax Benefits of Group Health Insurance Policy to learn more.
4. Group Health Insurance Plans can be customised
Another big advantage of Group health Insurance Plans for employers is that the features of a Group Health Insurance Policy can be customised. Employers are free to select the Sum Insured, Room Rent Capping in a GMC Policy and Co-Payment Clause in a Group Mediclaim Policy, and other benefits like Maternity Benefits etc.
Depending on the features selected, the premiums for Group Health Insurance Policy will either increase or decrease. As a result, employers have a lot of flexibility to add or remove features depending on their budget.
Advantages of Group Health Insurance Plans for Employers
1. No Waiting Period for Pre-Existing Diseases
The biggest advantage of Group Health Insurance Policy for Employees is that the waiting period can be waived off for Pre-Existing diseases in group health insurance plans while individual or family floater health insurance plans will have waiting period of 3-4 years for Pre-Existing Diseases.
2. Easier Claim Settlement Process
The claim settlement process in Group Health Insurance Plans is much simpler as all you need to do is connect with the employer with all the relevant documents whereas in individual health insurance plans, the insured person will have to run behind the insurance companies or TPA to get their claims settled.
3. Maternity Coverage without waiting periods
Most individual or family floater health insurance plans provide maternity benefit only after a waiting period of 2-3 years. However, Maternity Benefit can be provided without any waiting periods under a Group Health Insurance Policy. This is one of the biggest benefits to female employees or the spouse of male employees under a Group Health Insurance Policy.
4. No Need for Medical Check-up
Individual Health Insurance Policies require all people over 50 years of age to undergo a medical check-up before they can avail a health insurance policy. However, there are no such restriction of a compulsory medical check-up under Group Health Insurance Policies.
5. Peace of Mind for the Employee
Finally, employees covered under a Group Health Insurance Policy can rest assured that their medical expenses will be taken care of in case of a medical emergency. This is really important since medical expenses are skyrocketing today and having a comprehensive health insurance cover is of paramount importance today.
Final Thoughts
As you can see, Group Health Insurance is an excellent option for employers as well as employees. It will serve as a motivating tool and perk for the employees while the employers benefit from increased employee productivity
Qian has tie-ups with the best group health insurance companies in India for Group Health Insurance requirements of employers. We will also assist you to compare Group Health Insurance Quotes across multiple companies and help you in selecting the best quote as well.
We can help you understand how to keep costs low while ensuring that all of your employees are covered.
Group Health Insurance for Small businesses
There is a lack of expert insurance advice for small businesses in India. However, we have a vision to cater to the insurance requirements of small businesses. Qian specialises in Group Health Insurance for small businesses. Over the last few years, Qian has catered to 100+ small businesses for their group health insurance policies. We promise quick quotes within 24 hours. So, if you have a small business looking to purchase Group Health Insurance for employees, don’t hesitate to reach out to us.
For more information, visit our website or give us a call today!
- Group Health Insurance Policy for Employees
- What is Group Health insurance?
- What is an Employee Group Health Insurance Policy?
- What does a Group Health Insurance Policy cover?
- What is not covered under a Group Health Insurance Policy?
- How is a Group Health Insurance Policy different than an Individual Health Insurance Plan?
- What are the Key Features of a Group Health Insurance Policy?
- What are the add-on covers available under a Group Health Insurance Policy?
- What is the impact of Room Rent Limit on the claim amount payable under the Group Health Insurance Policy?
- Should employers opt for a Pre-Existing Disease Coverage from Day 1 in Group Medical Insurance Policy for employees?
- Does a Group Medical Insurance Policy provide Maternity Benefits?
- What are Waiting Periods under a Group Health Insurance Policy?
- What are the benefits of Group Health Insurance Policy for Employers?
- What are the benefits of Group Health Insurance Policy for Employees?
- Why should you purchase an Employee Group Health Insurance Policy for your organisation?
- How many employees do you need to purchase a Group Health Insurance Policy?
- Who is eligible for Group Health Insurance for Employees?
- Are Employer Group Health Insurance premiums Tax-Deductible?
- How much does a Group Health Insurance Policy Cost?
- Which are the leading Group Health Insurance Companies in India?
- How to purchase a Group Health Insurance Policy?
- What are the Documents required to make a claim under a Corporate Health Insurance Policy?
- Why should I Purchase a Group Health Insurance Policy through an Insurance Broker?
- Compare Plans from 20+ Group Health Insurance Companies and choose the Best Group Health Insurance Policy in India with Qian!
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