The employee group health insurance is the medical insurance plan that provides health care coverage to all the employees of a company. In some cases, this policy also covers families of the employee. It is one of the major perk benefits that is offered by the companies to hire talented staff. The group health insurance plans are uniform in nature, i.e. they provide the same benefits to all the employees covered in the group.
Here are the benefits that are available under the employee group health insurance:
- Avoid undue hassles since no medical check is required for the employee as well as for the family;
- You are eligible for all the maternity benefits immediately from the start of the coverage;
- No need to shell out money for expensive health cover from your pocket. Even, if you need to pay a part of premium yourself, it is relatively cheaper and beneficial to opt in;
- There is no concept of waiting-period in group plans, i.e. even the pre-existing medical conditions are also covered from the start.
- Tax benefits are available to the companies that offer group health insurance to its employees;
- Helps in attracting talented potential hires and keeps the existing employees motivated.
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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 is 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 do a medical screening and during the screening, it was diagnosed that his father is suffering from diabetes which will require a dialysis soon. So, diabetes being a pre-existing medical condition will not be covered by the insurance company.
Mr. Ram got into some misunderstandings with the management of ABC Ltd. due to some performance issue, and he resigned from the job. Then, he joined the XYZ Private Limited where he was also offered employee group health insurance plan as a part of his compensation package.
He decided to cancel his existing health insurance from outside which saved him Rs. 50,000 p.a. and even learned that all his father medical expenses will be taken care of by the employee group health insurance as it covers the pre-existing medical conditions as well. Also, in this course of a job change, he came to know that his wife is pregnant and now all his maternity expenses will also 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 but it helped them save a big amount of money that was needed for paying medical bills.