How Does Group Health Insurance Cost an Employer per Person?
Offering group health insurance to employees is a critical benefit that enhances their well-being. In India, 80% of workers deem employer-provided health coverage vital for job satisfaction. This fosters loyalty, productivity, and an improved quality of life. Moreover, it showcases a commitment to employee welfare, further elevating loyalty, job contentment, and retention. Additionally, it serves as a magnet for top talent in a competitive job market. Prioritizing health insurance is a win-win for both employers and employees.Read more
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Key Factors Affecting Group Health Insurance Costs for Employers
- Company Size and Covered Population: Smaller firms (less than ten employees) spend around INR 13,317 per employee annually, while larger companies (over 100 employees) allocate approximately INR 19,722 per employee yearly.
- Employee Age and Health Condition: Premiums vary based on employee age and health. Younger individuals (26-45 years) pay an average of INR 8,022 annually, while those above 60 years pay INR 33,914.
- Type of Coverage: Family coverage costs more than individual coverage. Family plans average INR 27,798 annually, while personal plans average INR 9,509.
- Location: Premiums are higher in metro cities (e.g., Delhi, Mumbai) by 40-50% compared to tier-II cities (e.g., Lucknow, Jaipur).
- Network Hospitals: More network hospitals can increase premiums but improve access to quality healthcare. Policies with network hospitals average INR 14,589.
Balancing these factors helps employers choose cost-effective coverage that meets employee needs, emphasizing the value of investing in employee well-being.
What's the Price Tag on Employer-Employee Health Insurance Per Person?
On average, it can range from INR 10,000 to INR 25,000 per person annually.
To make sense of this, think of it like dining out. As dining costs vary based on the restaurant's type, food quality, and location, employee insurance policy expenses depend on coverage levels and the company's budget.
Some employees, like those satisfied with a quick and affordable fast-food meal, may find basic health insurance covering essential services sufficient.
On the other hand, akin to the premium price of fine dining, offering comprehensive health insurance with extensive benefits comes at a higher cost to the employer.
It's important to note that providing health insurance can be a substantial expense, particularly for small businesses. However, it's also a valuable tool to:
- Attract and keep skilled employees
- Reduce employee absenteeism
- Enhance overall employee well-being
So, while the cost of employer employee health insurance varies, the benefits it brings to both employers and employees can prove invaluable.
Employee insurance policy is a strategic investment in both employees' well-being and a company's success. Offering health coverage attracts and retains top talent, reduces absenteeism and prioritizes employee well-being. It's a competitive advantage and a testament to a company's commitment to its employees' holistic welfare, fostering loyalty and job satisfaction. Ultimately, health insurance is an invaluable asset that enriches lives and strengthens organizations, benefiting both employers and employees.
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