Health insurance is an important necessity for every individual in the family. Especially, if you have dependent elderly parents, it is important to have employer health insurance coverage for them considering their age. They would require frequent medical attention as they age. Considering the skyrocketing healthcare inflation, having financial protection for medical emergencies is crucial.
It is necessary to have health insurance for your dependent parents to ensure quality medical care for them at the right time without burning your pockets. Though you can buy a family floater health insurance or a standalone health insurance plan for your parents, including them in employer health insurance is a wise choice. In this article, let us look at the pros and cons of including dependent parents in employer health insurance.
What is employer group health insurance?
Employer group health insurance plan is a collective fitness policy offered by the employer to their employees to ensure their well-being. It is a single policy that covers all the employees of the organisation under one umbrella. The premium can be paid by the employer or can also be on a shared basis between employers and employees. Employer health insurance comes with a host of benefits and certain limitations.
Pros of including dependent parents in employer health insurance
The following are the benefits of including dependent parents in health insurance:
Comprehensive financial protection
Employer insurance provides comprehensive coverage for the employees. Employees can include their spouse, children, and dependent parents in the policy. It covers a wide range of healthcare services including hospitalisation expenses, pre-hospitalisation, post-hospitalisation, domiciliary services, day-care procedures, and more. The cashless facility offered by the employer-sponsored health insurance plan provides comprehensive financial protection to the covered individuals.
Easily accessible of Employer Health Insurance
Health insurance is extremely convenient and easily accessible for dependent parents. Considering the age of your parents, it is quite difficult to get comprehensive coverage for your dependent parents when you are availing of standalone health insurance. As dependent parents can be included in the group insurance plan sponsored by the employer without any medical check-up, it is convenient and easily accessible. Parents can get easy access to quality healthcare.
Low-cost
As the employer health insurance plan risk is spread across all the members of the group (organisation), the coverage comes at a reduced cost. When employers extend coverage to dependents, including parents, it may result in lower premiums compared to individual insurance plans. When you compare employer-group health insurance with individual fitness plans, standalone plans come at higher premiums with the increasing age.
Coverage for pre-existing illness
Generally, standalone health insurance plans come with a waiting period of 24 months to 48 months for pre-existing illness coverage. Especially, if you are availing coverage for the elderly, pre-existing illnesses may not get coverage or can come with restrictions. On the other hand, employer medical insurance provides coverage for pre-existing illnesses.
Tax benefit in Employer Health Insurance
If the medical insurance premium is paid by the employee. The tax benefit can also be availed under Section 80D of the Income Tax Act, 1961.
Peace of mind
Having financial security for the times of medical emergencies gives peace of mind to you. Having your dependent parents covered under health insurance can offer peace of mind, knowing that your loved ones have access to necessary medical care.
Cons of including dependent parents in employer health insurance
The following are the cons of including dependent parents in health insurance:
Policy restrictions
Employer-provided plans might have limitations on coverage for dependents, such as higher deductibles, copayments, or restrictions on certain medical procedures or specialists. These limitations could impact the quality or range of healthcare available to dependent parents.
Discontinuation of coverage
Employers might modify health insurance offerings, including coverage for dependents, due to changing company policies, cost-cutting measures, or alterations in healthcare regulations. This could lead to sudden changes or even discontinuation of coverage for dependent parents.
Cost concerns
Extending coverage to dependents, especially older individuals like parents, can increase the overall cost for the employee. Some employers may require the employee to bear a higher portion of the premiums for dependents, leading to an increased financial burden.
Conclusion
Before enrolling dependent parents in an employer’s health insurance plan, it’s crucial for the employee to carefully review the plan details, and consider the potential costs, limitations, and long-term implications. It might be beneficial to compare the employer’s plan against other available options, like individual policies or government health programs designed for seniors.
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.
