Group Health Insurance

One of the most important goals that any employer seeks to achieve is employee satisfaction. An organisation may provide various facilities to make its employees feel comfortable. These include suitable parking space in the office area, good-quality stationery and free beverages or decent food options in the office canteen. Some organisations also organise free medical check-ups for all employees from time to time. These are some factors that are often a great source of motivation for employees who do return the favour by working wholeheartedly for the company.

One of the other ways to motivate your employees is to provide a group health insurance policy to your employees as a part of the employee benefits. This policy can cover a group of people under a single plan. Any kind of organisation, whether private, public or a partnership firm can avail of this group cover. It not only enables an employer to achieve employee satisfaction and retention but also offers tax benefits for both the employer and the employee.

The premium of the policy is usually paid by the employer so the employee can remain free of any burden from the group policy unless he chooses to contribute towards it. For the employer, all reimbursements done for the medical expenses that are incurred by any eligible employee are tax-deductible. The premium contributed is also completely or partially tax deductible, depending on the policy wordings.

Apart from the tax benefits, many provisions of the group health policy can be advantageous for employees. Particularly those who have ageing parents, a disadvantaged medical history or those who are planning to start a family. An individual health plan may sometimes be better as it gives more choices to customise it for the individual but a Group Health Plan lays out several advantages that can make it a dream plan.

Let us have a look at the health care benefits that are unique to a Group Health Insurance policy making it the most sought-after cover in the Corporate World:

1. No Co-pay:

In the group health insurance policy, you can opt for no co-pay clause. This means that the hospitalization and medical expenses are fully covered under the policy for the specified time period according to the policy regulations and the employee who has availed it is not responsible for paying a single penny from his pocket. This benefit is often missing in an individual plan in which the individual has to bear a fixed percentage of the hospitalization and medical costs or otherwise pay a part of the claimed amount up front.

2. No Waiting Period:

In an Individual and a Family Floater Plan, certain diseases like cancer might come with a waiting period of at least 6 months or one year. This means that these diseases are covered in this policy but only after their specific waiting period has expired. But in a Group Health Policy, there is no waiting period. From the very first day of employment, the employee can avail of the expenses for all diseases covered in the Group policy.

3. No pre-medical Check-Up:

Unlike in an individual policy, a group health policy does not require a pre-medical checkup for each eligible employee. The employee is eligible to be covered under the policy due to their employment in the company. From the first day of work itself, an employee becomes eligible to avail the benefits of a Group Policy.

4. Past illness and critical illness cover:

A group health policy covers the expenses of any past illnesses as well. Generally, health policies include only the illnesses that are not related to any past health problem or do not cover the expenses of any health problem that might have happened in the past leading to ongoing medical treatment. Such is not the case with a group health cover. Moreover those with ageing parents benefit from a Group Cover as they become instantly eligible for critical illnesses like a knee replacement, hernia and cancer by being eligible employees of the company.

5. Maternity and Post-natal Cover:

Like any other illness, there is no waiting period for maternal and baby care expenses as well. A newborn baby is also covered from the day of its birth under this policy unlike the general waiting period of at least 90 days. Some group health policies also cover congenital diseases. So, if an employee is planning to start a family soon, it is a good way to provide this valuable benefit and retain him/her.

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