What is Corporate Buffer in Group Health Insurance?

Corporate Buffer: Meaning

Corporate Buffer is a pooled coverage created at the organization level to assist employees during medical emergencies, especially for critical illnesses. It can also be used for treatments beyond critical illnesses if approved by the insurer, provided the employee's family floater coverage is used up. Organizations maintain a specific buffer amount, and when an employee requires assistance, the organization decides to allocate funds from this buffer. In simple words, it is an approval-based benefit that covers the expenses of treating critical illnesses for employees after they have utilized their entire sum insured limit. 

How can an Employee Avail Corporate Buffer?

A corporate buffer can be utilized if an employee or his dependent suffers from a critical illness. But the decision to avail this buffer to the employee lies in the hands of the employer. To avail of a corporate buffer under employer employee insurance, the employee should submit a request letter with the supporting documents.

• Medical reports affirming the illness
• The doctor's certificate that mentions the medical procedure required
• Complete medical records
• Overall cost estimate of the treatment
• Documents stating that the sum assured from the employee's family floater plan has been exhausted

It has to be noted that the immediate medical attention required should fall under the category of critical illness to avail of this benefit.

Why is Critical Illness included in Corporate Buffer?

Corporate buffer covers medical emergencies categorized under critical illness. Covering critical illness in the corporate buffer is to reduce the financial burden from the employee's shoulders. As the cost of treatment for critical illness is usually higher than an average medical expense, a corporate buffer can come to the rescue. Also, in most standard policies, critical illnesses are not covered.

What may not be Covered in Corporate Buffer?

1. Maternity cost: In most cases, companies exclude maternity and maternity-related ailments. However, the final discretion remains in the hands of the employer.
2. Excessive cost: The amount of corporate buffer is usually pre-decided and pre-approved by the employer. If the treatment cost exceeds the pre-decided amount, the difference in the cost has to be borne by the employee.
3. Limit on room charges: As mentioned above, the amount for a corporate buffer is pre-decided and pre-approved under each sub-section. Thus, if the per-day room occupancy charge exceeds the set limit, the employee pays the difference in expense.

Final Word

A corporate buffer is a benefit the employer provides over and above the standard group insurance for employees. The financial setback during a critical illness can significantly impact the employee's financial health and overall performance. This is when a corporate buffer in a employee insurance policy can come to the rescue.