Employee group health insurance is a type of insurance policy purchased by employers to provide healthcare coverage to their employees. It typically covers medical expenses such as hospitalization, surgeries, and medical consultations. Group health insurance policies are affordable and provide coverage for pre-existing medical conditions, making them a popular employee benefit. Employers can choose to offer a group health insurance policy as part of their employee benefits package, which can help attract and retain talented employees.
Employee group health insurance provides healthcare coverage to a company’s employees. In some cases, this group health plan also covers the employees’ families. This is one of the major perks that companies offer their staff.
Benefits of an employee group health insurance Plan
- Uniformity: Group health insurance plans provide the same benefits to all employees covered.
- No medical tests: Neither the employee nor the family of the employee has to undergo medical tests to qualify for coverage.
- Immediate benefits: Employees or family members covered are eligible for all maternity benefits as soon as coverage begins.
- Savings: Employees do not need to shell out money for expensive health coverage. Under some arrangements, employees might have to pay a part of the premium, but this is still cheaper than buying a policy individually.
- Comprehensive coverage: Group health insurance plans cover even pre-existing medical conditions.
- Tax benefits: Companies can avail of tax benefits for offering group health insurance to their employees.
- Incentive: Such plans help organizations attract and retain good employees.
Group health insurance offers a lot of convenience to employees by providing them with coverage for medical expenses at an affordable cost. With group health insurance, employees do not have to worry about the financial burden of medical expenses as the insurance company will cover most of the costs. Group health insurance also offers a wider coverage and benefits compared to individual health insurance policies.
Group health insurance policies are usually easy to enroll in, with minimal or no medical underwriting required. The premiums are also lower compared to individual policies as the risk is spread across a larger group of people. Additionally, group health insurance policies provide coverage for pre-existing conditions and maternity expenses, which are not covered by many individual health insurance policies.
Overall, group health insurance offers a convenient and cost-effective solution to employees for their healthcare needs, providing them with peace of mind and financial security.
Case Study: Group health plan can make a difference
Mr. Ram Sahni was working as a manager with ABC Ltd at an attractive salary. But the company did not have a group health insurance policy. So, Mr. Sahni bought a health insurance plan for himself and his family (including his 55-year-old father) paying Rs. 50,000 as the premium.
The insurance company wanted the family to undergo medical screening before finalizing the policy purchase. During the screening, Mr. Sahni’s father was diagnosed with diabetes, which might soon require insulin support. Since diabetes was a pre-existing medical condition, it would not be covered by Mr. Sahni’s health plan.
Meanwhile, Mr. Sahni had a disagreement with ABC’s management and left his job. Then, he joined DAC Private Limited, where he was offered an employee group health insurance plan for himself and his family as part of his compensation package. The group’s medical insurance covered pre-existing conditions, so it would also take care of his father’s treatment. It would also cover the maternity costs for his wife, who was pregnant.
Mr. Sahni replaced his personal health insurance with a lower-cost top-up health plan. This saved him Rs. 35,000 p.a. Although the job change was stressful for Mr. Sahni and his family, the new employee insurance scheme helped him save a large sum on medical bills. This helped reduce his family’s anxiety.
About The Author
Mayank Sharma
MBA Finance
He is a professional who brings extensive knowledge and expertise to the field of group health insurance. He has dedicated 7years to helping individuals and businesses navigate the complexities of insurance. Having worked closely with numerous clients and insurance providers, he deeply understands the nuances of group health insurance policies. With a reputation for providing insightful and informative content, he leverages his industry experience to educate readers about the importance of group health insurance and its benefits. Through their articles, Mayank Sharma aims to empower individuals and businesses to make informed decisions about their healthcare coverage, ultimately promoting healthier and more secure communities.
