Group Health Insurance

Employee group health insurance is the medical insurance plan that provides health care coverage to the employees of a company. In some cases, this policy also covers families of the employee. It is one of the major perks or benefits that is offered by the companies to hire talented staff. Group health insurance plans are usually uniform in nature, i.e. they provide the same benefits to all the employees covered in the group.

Benefits of employee group health insurance plans:

  • They help the insured to avoid hassles since no medical check is required for the employee as well as for the family of the employee.
  • Employees or family members covered are eligible for all the maternity benefits immediately from the start of the coverage;
  • There is no need for employees to shell out money for expensive health cover from their pockets. Even, if employees need to pay a part of the premium, it is relatively cheaper and beneficial for them to opt in;
  • There is no concept of waiting-period in group plans, i.e. even pre-existing medical conditions are covered from the start date of the insurance policy;
  • Tax benefits are available to the companies that offer group health insurance to their employees;
  • Such plans help the organisation to attract talented potential hires and keep the existing employees motivated.

Case with Benefits of Employee Group Health Insurance

Mr. Ram Sahni has been working as a Manager with ABC Ltd at an attractive salary, but the company did not offer any health care plan to its employees. So, to cover the risk of unexpected medical expenses, he took a health coverage plan for him and as well as his family (including his father aged 55 years) by paying Rs. 50,000 for a year.

To complete the process of buying the policy, he along with the family was required to undergo a medical screening, and during the screening, it was diagnosed that his father was suffering from diabetes which would soon require dialysis treatment. Diabetes, being a pre-existing medical condition, would not be covered by the insurance company’s health plan.

Mr. Ram had then also got involved in some misunderstandings with the management of ABC Ltd. due to performance issues, and he resigned from the job. Then, he joined DAC Private Limited where he was offered an employee group health insurance plan as a part of his compensation package.

He decided to cancel his existing health insurance which saved him Rs. 50,000 p.a. and even learned that all his father’s medical expenses would be taken care of by the employee group health insurance since it covered pre-existing medical conditions as well. Also, during this course of job change, he came to know that his wife was pregnant but all the maternity expenses would be taken care of by the group insurance.

Even though the job change was a stressful and anxious period for Mr. Ram and his family, the insurance helped him save a large amount of money that might have been spent on paying medical bills. And due to the group insurance that he was now covered by, he received several additional benefits towards his family’s well-being.

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