Group Health Insurance

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Paying premiums for Group Mediclaim Insurance

A group medical insurance policy covers the members of a group under a single policy. Groups that are eligible to buy a group health insurance policy for their members include employer-employees, trade unions and their members, clubs and their members, and banks and their account holders. New members are added to the group coverage either mid-way during the term of the policy or when the policy is up for renewal.

Arriving at a premium

The insurance company determines the policy’s sum insured. It underwrites the health risk of the members being covered to arrive at the allowable sum insured. Then, it calculates the premium rates for the group medical insurance policy based on the sum insured and other factors.

Paying Premiums for Group Mediclaim Insurance

Method 1: Head of the group pays premium

In this case, members do not have to pay the premium. They enjoy free coverage. For instance, in an employer-employee corporate health insurance plan, the employer may pay the premium and the employees would enjoy group insurance coverage. Similarly, clubs or trade unions can use the group expense account to pay premiums and the members would enjoy free coverage. A bank can pay for and buy a group mediclaim policy giving its account holders free coverage.

Method 2: Group members pay premium

In this case, every member of the group pays their own premium. Then, the group pools member contributions to pay the premium as a lumpsum. For instance, in employer-employee groups, employers can deduct premiums before crediting salaries to employees. Similarly, in trade unions or clubs, members might pay their individual premiums. Banks usually deduct respective premiums from their customers’ accounts and pay the insurance company.

Method 3: Sharing premium costs

The group head and its members can share the premium in a pre-defined ratio. So, the group head would pay a part of the premium and the members the remaining. The group can fix the premium-paying ratio according to its capacity. This method of premium payment is affordable both for the group and its members.

Method 4: Other arrangements

Further, a common arrangement that companies have is that they pay for their employees’ insurance but employees pay their family’s costs. Or, the company may pay for employees’ families but recover premiums for insured parents from the employees.

Regardless of the premium payment method a group chooses, the group health insurance policy would remain unchanged. The insurance company is not concerned with how the premium is paid. It collects the premium from the group and issues a master medical insurance policy covering the members.

At SecureNow, we can help you find the best policy to suit the needs of your group and can help you arrive at the best payment method. We have standard forms that we can use with your group members to determine if and how much they would be willing to pay for their insurance.

For more details visit SecureNow or Linkedin