Group Health Insurance

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Factors affecting the cost of a group health insurance policy

A group health insurance policy covers many individuals under a single policy. An insurer will issue a master group medical insurance policy to recognized groups. It will have the names of all insured members. When new individuals join the group, the policy covers them by default. So there are various factors affecting the cost of a group health insurance policy

These are:

  1. Type of group being insured

Employer-employee groups, clubs, associations, etc. have members from a specific socio-economic background. They are considered low-risk. Thus, the premiums for their group mediclaim insurance policy are lower. However, members of trade unions, or farmers, or other groups are seen as having many health risks. Thus, they have a higher group medical insurance cost.

  1. Number of members covered in the policy

This is a simple equation. As the number of members covered increases, the group health insurance premium rises.

  1. Sum insured and coverage benefits of the policy

A high sum insured means the premium for group medical insurance will also be high. Similarly, a plan can offer many coverage benefits. It can also extend coverage to members’ dependents. In such cases, the premium would increase.

  1. Add-ons selected for the policy

If a group chooses optional coverage riders, the group health insurance premium increases. This is because each rider comes at an additional premium.

Additional Read: How to customize your group health insurance policy

  1. Discounts offered on group health insurance policy

Group medical insurance plans offer discounts that help lower the premium.

Compare costs for best group mediclaim – the cost of a group health insurance policy

Different insurance companies have different pricing policies. Thus, you will find different premiums for the same coverage. So, compare plans based on coverage benefits, the sum insured, and the premium. Then, choose one that offers a competitive premium and good coverage benefits. Finally, you can add or remove optional coverage benefits. This will help you find the best group health insurance premium.

What factors influence group policy renewal? 

At the time of renewal, the insurer revises the group health insurance premium based on:

  • The number of members
  • The increased age of each member
  • New add-ons that may be selected
  • The claims made in the past year

If there are only a few claims in the previous policy year, the insurer might offer discounts.

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