Nowadays, companies know that their employees are an integral part of the business’s well-being and success. Therefore, like any asset, they invest in their employees’ health and happiness with a dependable health insurance plan.
Understanding the intricacies of an employee health insurance policy by both parties impacts overall well-being and satisfaction. So, before you buy medical insurance, let us look into some crucial points you need to grasp.
What are Employee Health Insurance Plans?
Health insurance coverage for employees is an added benefit given by employers to their employees. The employer pays the health insurance premium on behalf of the employee to help employees reap the benefit. Further, the health insurance policy coverage is extended to other members of the employee’s family, like dependent parents, spouses and children.
5 Key Facts of Employee Health Insurance
1. Affordable, Low Risk, And Value for Cost
Employee health plans, which employers procure for employees, are affordable health insurance options. As a group mediclaim policy, their premiums are low compared to the coverage provided as they are purchased in bulk. Further, the coverage they provide extends to immediate family members.
2. No Scope of Complication
Employee insurance plans are pretty straightforward when you compare them with other types of health insurance plans. Further, there is no complication or rigidity and ease of purchase as it excludes aspects like health checkups, pre-existing conditions, waiting periods, etc.
3. Variation in Plan
Though employee health insurance policies are generic, their features and coverage differ depending on your provider. For example, some coverage may provide a maternity benefit, while others may have an extensive network of hospitals or cover pre-hospitalisation, etc.
4. Lack of No Claim Bonus Benefit
Employee medical insurance should be viewed as supplementary coverage rather than a sole coverage option. This is because, unlike other health insurance options, it lacks a claim bonus benefit.
Therefore, it is always better to have a self-paid insurance policy and use this policy type as a complementary insurance option.
5. Limitation on Several Grounds
The drawback of an employee health insurance plan is that it is limited to the tenure of your employment. This means that when you leave a firm, the insurance gets ripped out of your pocket.
Further, due to its generic feature, it may also be limited to comprehensive coverage, and benefits may vary depending on your employer.
What are the Benefits of an Employee Insurance Plan?
1. Affordability
According to the National Health Insurance Service, around 27.6 million people of all ages did not have any kind of health insurance in 2022. The biggest reason for this was affordability.
But with an employer health insurance plan, unaffordability is out of the question. Employees don’t have to pay for it. It is entirely funded by the employer, acting as a prominent benefit.
2. Superior Medical Care
Another excellent advantage is that employee health insurance lets you get treatment at top-tier hospitals. Therefore, you get superior medical care, which may be expensive otherwise.
3. Helps with Hiring and Retaining Employees
Although it may not be the sole influencing factor, the health insurance plan contributes significantly. It acts as a positive aspect that helps when hiring and retaining employees.
4. Enable Tax Benefits
Companies can also avail themselves of tax advantages depending on the premium they pay. The tax benefit directly depends on the total premium paid by the company under the Income Tax Act.
5. No Waiting Period
When you buy an Individual health insurance plan for a certain type of coverage, you have to qualify for a waiting period.
For instance, if you want maternity coverage, you need to plan in advance and qualify for the period. But in the case of an employee health insurance plan, this clause is relaxed.
6. Advanced Approach to Healthcare
We live in new-age health care, where our approach to wellness and treatment is advanced. With employee health insurance, you can avail of advanced approaches such as a fitness app for tracking health, discounts on gym membership, and rewards for good health.
This preventive measure can be enjoyed with employee health insurance, further helping you stay active and productive.
Conclusion
Employee health insurance is a complimentary insurance you give to employees. Therefore, having a deep understanding of its features is essential for both employers and employees. With a detailed understanding of employee health insurance, you can avail several benefits while maintaining the well-being of employees.