As a business owner, one of your objectives is to motivate your valued employees and a Group Health Insurance plan can assist you in doing this quite effectively. However, unlike the majority of employers who avail of a single group mediclaim policy covering all the employees in an umbrella cover, you might opt to be different and think about availing of multiple such plans to boost your employees’ morale. But before you do so, it is better to evaluate this and then take your decision wisely!
Availing of multiple mediclaim insurance policies for your employees can be very confusing. At the outset, it might seem to be a good idea with possibly several added benefits. But before you decide to implement it, you need to look at the pros and cons of having multiple group health plans and how it can affect your organisation in the long run.
Advantages of availing multiple Group Health Plans
Disadvantages of availing multiple Group Health Plans
|Substitute cover available||Difficult to manage|
|Increased specialised coverage||Increase in administrative costs|
|Tax benefits||Limited coverage even though policies are multiple|
|Covering Different Groups||Problem in claims procedure|
Though, it is generally not advised that you avail multiple group health policies for your organisation, the advice does have some exceptions. For example, it may be beneficial for large manufacturing firms that have staff engaged in clerical operations and other staff engaged in physically demanding or other high risk tasks.
Additional Read: How to buy a Group Health Policy?
In such a scenario, it is advisable to buy separate health policies to cover the employees in two categories. Additionally, if you have employees travelling to other countries frequently you will also need international health policies to look after their health in foreign countries as well.