Group Health Insurance

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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 employee group health insurance plans

  • 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 cover. 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 organisations attract and retain good employees.

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 finalising 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 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.