Importance of Group Health Insurance for Employees and Employers
A group health insurance policy is also known as a corporate health insurance policy. It provides coverage to a group of people like employees of an organization or members of society. An organization can either select a pre-planned group health insurance plan or can self-design a policy. Being a health insurance plan provided by the employer to its employees one may think that it is beneficial for employees only. However, this plan is of equal importance for both employers and employees, let us see how.
Importance of Group Health Insurance for Employees:
The importance of this policy for employees is as follows:
- Default Health Insurance Coverage: All the members of a group or organization are covered in a group health insurance plan. So, an employee gets health insurance by default just being employed with an organization that offers group health insurance coverage to its employees.
- No Medical Check-Up Is Needed: In a group health insurance plan, one does not have to undergo any medical check-ups before getting coverage of the policy. Moreover, he/she does not have to provide any medical reports to get him/herself enrolled in a group health plan.
- Support from Organization at the Time of Claim: Since a group health insurance plan is provided to all the people of an organization despite their health issues. So, this is of great value for people who are looking to purchase a health insurance policy but cannot buy it because of the high price or current health state. Additionally, as this plan is offered by an employer to its employees so the company supports the employees when he/she makes a claim.
- No Waiting Period: A group health insurance plan does not have any waiting period and one gets insurance coverage from day one even the diseases such as diabetes, heart issues, etc. are covered from day one.
- Maternity Coverage from Day One: Most of the group health insurance plans provide maternity cover from day one. This means, if one joins a company and is enrolled in its group health insurance plan, then you get maternity cover on an immediate basis.
- Useful for the Wellbeing of Employees: A group health insurance plan works as a tool to secure the wellbeing and health of employees and their families.
Importance of Group Health Insurance for Employers:
The importance of this policy for employers is as follows:
- Helps to Retain Employees: These days companies are becoming employee-centric and one of the benefits that they prefer to offer to their employees is a group health insurance plan. According to a survey, companies that offer a group health insurance policy have a high retention rate of employees than those which do not have. Most of the group health insurance plans as well as cover the family members of the employees, which increases the attachment of employees with their organization.
- Motivated Employees: In the current time, when medical costs are increasing day by day, group health insurance works as a relief. By getting the insurance against the higher cost of hospitalization employers can easily motivate their employees.
- Tax Benefits: The employers get tax benefits by paying the premium of a group health insurance policy.
- Affordable Premiums: Since a group, health insurance policy is generally purchased for a large group of people, thus its premium is quite low as compared to an individual health insurance plan.
- Simple Premium Payment Option: As per the policy of the company, an employer is eligible to select the premium payment frequency. An organization can pay the premium monthly, yearly, or quarterly basis as per its convenience.
Extra Advantages with Riders:
By adding add-ons like accidental insurance and critical illness to your health insurance policy, an employer can easily expand the coverage. These riders are very beneficial for employees.
The Final Words!
A group health insurance is advantageous for both employees and employers, but when an employee leaves the organization. On the one hand where, employees get health insurance without a waiting period and any constraint for pre-existing illnesses, an employer gets advantages like tax benefit, the loyalty of employees, and a relaxed workforce.