A Group Health policy is a health insurance cover that provides protection to a group of people who can be the members of a society, the employees of a common employer, or the professionals in a common group. Employers usually take a group health policy for their employees to cover their medical risks and expenses.
Health insurance has gained importance in recent years due to increasing medical costs. Therefore, it has become essential for employers to provide health covers to their employees to cover their medical expenses in case of any health issues. This also helps the employers to attract a talented pool of potential employees as well as retain the existing employees in the company.
Here are the steps that an employer should follow while buying a Group Health policy:
1. Decide whom to cover:
Firstly, the employer needs to take a decision regarding who all will be covered under the group plan. Will it be just the employer himself and top management or the employees as well as their family members.
Tis is a very important decision since the cost of the health cover is dependent upon the number of members covered under it. So, more members leads to a larger insurance premium for the policy.
2. Talk with the employees:
This step will help you know about the expectations of the employees. The employer can conduct a survey or request the employees to fill a questionnaire that will help the employer to know about the coverages that are needed by the employee. It also helps in deciding whether the employee wants a single cover (i.e. Only for himself) or the triple cover (that covers the employee, spouse, and children as well). Also, the health plan taken by the employer makes a difference in the compensation structure of the employee, so it is good to make them part of the process of choosing the group plan.
3. Determine the amount of the coverage:
The employer needs to decide on the amount of the cover that is required, it is again an important decision while buying the group policy. While determining the amount of coverage, the employer should not only consider the present conditions, but also consider the future too for example increasing health care expenses, age group of the employees, etc.
The coverage amount is also dependent upon the work environment and conditions. The employees working in a chemical manufacturing plant are more prone to having health issues in comparison to the people working in an operations job who are required to work on computers in offices. Hence, industries with working conditions that are likely to make employees more prone to health issues need to buy a higher coverage for their employees.
Also, ascertain the need of worldwide coverage. If the employees need to travel often then the employer should consider buying health plans that provide international coverage but it will increase the premium.
4. Get quotes from different insurance providers:
There are many health cover provider companies providing a wide variety of plans. The employer should connect with as many providers as possible to get the best possible quotes that provide a variety of coverages. You can also compare the group health insurance quotes online from top insurers or insurance brokers.
5. Choose a suitable Group Health Insurance plan:
While choosing a suitable plan, do not just consider the plan with the lowest price. But, instead of price, the coverages offered by the different plans should be the deciding factor to make sure that a sufficient coverage is bought for the employees. The employer should consider the product, premium, and services offered together to choose a plan that meets his requirements in a best possible manner.
Some of the insurance companies also offer various value added services like regular health checkups, wellness camps, on-site medical tests, etc. that help in maintaining the wellbeing of the employees as well as serve as an incentive for them. The quality of the customer service provided by the insurance company should also be evaluated since it helps in knowing the efficiency and ease of the claim process in case of emergency.
A Group Health plan is the important incentive for the employees these days. So, employers need to make sure that they choose the best possible health plan for their employees by following the above-mentioned steps.