“To win in the marketplace you must first win in the workplace.” 
- Doug Conant, CEO of Campbell’s Soup
 

Employees are a very essential element in a business as they keep it running with their hard work and expertise. They give a significant amount of their lives to the company and it is the company’s responsibility to look after their employees under any circumstance by taking appropriate measures.  Companies have many choices of ways to prosper their employees, however, providing employee benefits is one of the mainstays. There are many benefits you can offer through your business, but there’s one winner that rules them all: Health Insurance. That’s because it helps keep your team healthy and happy, and providing health insurance to employees signals that you care about their well-being. Health insurance in itself is a compulsion in India, which guarantees the insured about the indemnification for his or her health ailments. However, when a company offers group health insurance to their employees, it acts as an incentive for the employees to perform better because of increased sense of self-security.

Let’s discuss a few points on why health insurance is necessary and its influence on the workforce as well as its advantages for both employers and the employees.

NEED FOR HEALTH INSURANCE

The need to feel secure and looked after by someone is something that provides us a sense of confidence and reduces anxiety with respect to safety and performance. As one becomes more confident and secure, they tend to become more optimistic and endorse positivity through their work. We could also notice that with changing times and especially post the covid pandemic, there is a great increase in accidental mishaps and conceived diseases among people. Purchasing a decent health insurance policy can underwrite the insured that they will be mitigated for their losses due to illnesses or accidents. 

INFLUENCE ON THE EMPLOYEE’S MORALE

It is a common consensus that employees who are happy working in a company usually perform better and give more efforts to keep enjoying the company perks and advantages. The power of encouragement could also help a company to improve or even recruit better suited employees for the company objectives. According to a survey by Glassdoor, employees said health insurance is, by far, the most important benefit they receive from their employer. If health benefits are a top priority for your employees, it should be a top priority for you. Offering it can help with recruiting and entice them to stay longer at your company.

ADVANTAGES OF GROUP HEALTH INSURANCE FOR EMPLOYERS

The best part of group health insurance is it offers benefits to both employers and employees. Irrespective of the size of your organization, advantages of group health insurance remain the same for all types and sizes of companies barring certain terms and conditions. Some of the benefits of Group Health Insurance for the employers are:

  1. Providing health insurance helps boost employee productivity

‚Äčstudy from MetLife found that 60% of employers say offering health insurance has led to higher productivity levels. And according to the Center for Disease Control and Prevention, employees who prioritize preventive care—like regular check-ups—get more accomplished at work.

As an employer, you want your employees to focus on being their best productive and successful selves at work. Worrying about health insurance drains their energy and time. Looking after your employees’ health and wellness results in happier individuals, which in effect contributes to a happier workplace. After all, it’s the people who make or break the organization.

  1. Tax Benefits

Employers offering group health insurance to their employees can receive tax benefits under several sections of the Income Tax Department. As per Indian tax regulations, organizations are exempt from certain taxes if they buy a group health plan for their employees. It’s a win-win situation for the organization as you can save big on tax returns and care for your employees at the same time.

  1. Boosting Goodwill

In today’s day and age, it’s important for any company to have an excellent reputation inside as well as outside the organization.

Along with a good company culture and growth rate, a set of compelling corporate health benefits ensures that the overall goodwill of the organization increases in the market.

  1. Value for money

According to recent studies, group health insurance is said to be 30% cheaper than individual health plans because it covers a large number of people.

All group health insurance plans are customized which means that the risk and the premium amount is shared amongst the employees. This makes it more economical and cheaper as compared to individual health plans. 

ADVANTAGES OF GROUP HEALTH INSURANCE FOR EMPLOYEES

Firstly, group health insurance makes healthcare affordable for employees and their families. Next, one of the greatest assets for your business is employees. With a group health plan, you can keep them happy and happy employees are productive employees, thus boosting your bottom line. Besides this, here is the list of employee group health benefits:

 

  1. Easy on the Wallet

As compared to individual health insurance or family health insurance, employee health insurance (with good benefits) is available at a cheaper premium. It’s more budget-friendly as the total amount is shared with fellow employees.

  1. The Right Motivation Tool

The right group health insurance plan acts as a great motivation tool for employees. It makes them feel valued, which eventually leads to higher productivity as well as an increase in employee engagement.

  1. Health Insurance coverage for families

Managing health insurance policies within the family, like a family floater health insurance plan from different providers can be a hassle. Instead, with group health insurance, your family is included under a single plan. Thus, an employee can support their family. 

The amount of coverage and claim varies from policy to policy, but most of the costs, like medicines, day care, maternity, and more, will be covered. 

This is a way to provide financial support to your employees and their family for protection.

  1. Easy Claim Process

One of the most important benefits of group mediclaim policy is the hassle-free claim settlement process. Individual health insurance policyholders often have to go through a time-consuming process of producing documents, cash upfront transactions, etc. Whereas with group medical insurance, they often have to just submit their hospital bills to the employer and they get a reimbursement.

  1. Value for money plans

Group Health Insurance plans also cover maternity benefits as well as OPD (Out-Patient- Department) benefits for preventive care of the employees. OPD mainly focuses on pre-existing illnesses. This, along with added benefits like health and wellness sessions, makes group health plans worth every penny.

  1. Covers pre-existing diseases without a waiting period

With individual health insurance, you must wait a certain amount of time before filing a claim if you have pre-existing diseases. This is one of the biggest disadvantages of individual health insurance. In group health insurance policies, this disadvantage is minimized.

From the first day of coverage, group health insurance permits you to file a claim for any pre-existing illnesses. As a result, there are no waiting periods for covering pre-existing conditions in group medical insurance.

COVERAGE AND EXCLUSIONS

Major Coverages

  • Accidental Hospitalization

In case an employee or his/her dependent gets into an accident, this covers all the hospitalization expenses such as road ambulance charges, room rent, diagnosis, day care procedures, etc.

  • Covid Hospitalization

In case an employee or his/her family members are tested positive for COVID-9, corporate health insurance will cover for its hospitalization costs.

  • Illness-Related Hospitalization

Sometimes, some illnesses require hospitalization. This benefit will cover your employees and their dependents for all treatment and hospitalization expenses.

  • Maternity Benefit with Newborn Baby Cover

This is something many young working professionals worry about! This benefit can be opted to cover for child delivery expenses for your employee or their spouse. It also covers expenses in case of an infertility treatment or medically necessary terminations.

  • Daily Hospital Cash Cover

In case your employee or their dependent is hospitalized, expenses go beyond just the hospital bill and this benefit helps people cover for just that.

  • Other Benefits

Group health insurance plan also includes benefits to cover for things such as Alternate Treatment (AYUSH), Organ Donation Expenses, Infertility Treatment and Bariatric Surgeries among others.

Exclusions

Listed below are some of the exclusions of Group Health Insurance policies:

  • Pre-Natal and Post-Natal Expenses

Pre-natal and post-natal medical expenses, unless it leads to hospitalization of the employee or their spouse.

  • Breach of Law

Expenses for treatment directly arising from or consequent upon any Insured Person committing or attempting to commit a breach of law with criminal intent.

  • Cosmetic or plastic surgery

Expenses for cosmetic or plastic surgery or any treatment to change appearance unless for reconstruction following an Accident, Burn(s) or Cancer or as part of Medically Necessary Treatment to remove a direct and immediate health risk to the insured. For this to be considered a medical necessity, it must be certified by the attending Medical Practitioner.

  • Claims made before the initial waiting period

For covid-related claims, there is an initial waiting period of 15-days. Claims made before the completion of the same can’t be covered. 

  • Hospitalization without a doctor’s recommendation

Any condition your employee gets hospitalized for, that doesn’t match with the doctor’s prescription is not covered.

 
And there you have it. From building a healthier, happier team to actually saving money, there are many reasons to take the plunge and offer health insurance to your team. Offering health benefits signals that you care about your team, ultimately building a culture of trust.
 
Also, guess what? You don’t have to do this alone. We, at Raghnall, are here to guide you through the whole shebang.
As your go-to agent, we will:
Help select a plan that’s right for you and your team, based on your industry and the coverage preferences of all the folks in your company.
Set everything up and keep you compliant on an ongoing basis.
Be the resident healthcare know-it-all for your employees, so you don’t have to answer difficult questions on all things health insurance.
 
To know more about how Raghnall can help you get the right Group Health Insurance for your employees, contact us today at consult@raghnall.co.in.
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