{"id":16147,"date":"2021-02-17T10:47:41","date_gmt":"2021-02-17T10:47:41","guid":{"rendered":"https:\/\/insuropedia.in?p=16147"},"modified":"2026-03-11T09:17:38","modified_gmt":"2026-03-11T09:17:38","slug":"should-employers-select-group-medical-insurance-company-on-the-basis-of-premium","status":"publish","type":"post","link":"https:\/\/securenow.in\/insuropedia\/should-employers-select-group-medical-insurance-company-on-the-basis-of-premium\/","title":{"rendered":"Should you select Group Mediclaim based on premium?"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p><span style=\"font-weight: 400;\">Offering a good group medical insurance plan can give employees a sense of security help retain the best talent and strengthen their motivation to drive your business towards heights of success.\u00a0<\/span><span style=\"font-weight: 400;\">As an employer, you can get tax benefits on the amount of premium paid towards the group medical insurance policy. Corporate health insurance companies are offering customizable insurance plans depending on your requirement. So, let&#8217;s know more about selecting Group Mediclaim based on the premium.<\/span><\/p>\n<h2 data-path-to-node=\"5\">Key Takeaways<\/h2>\n<ul data-path-to-node=\"6\">\n<li>\n<p data-path-to-node=\"6,0,0\"><b data-path-to-node=\"6,0,0\" data-index-in-node=\"0\">The &#8220;Premium-Only&#8221; Trap:<\/b> While a low premium is attractive, it often comes at the cost of &#8220;Room Rent Caps&#8221; or poor service levels. In 2026, the best approach is to use a <b data-path-to-node=\"6,0,0\" data-index-in-node=\"170\">premium calculator<\/b> to get quotes, then filter them by <b data-path-to-node=\"6,0,0\" data-index-in-node=\"224\">Incurred Claim Ratio<\/b>.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"6,1,0\"><b data-path-to-node=\"6,1,0\" data-index-in-node=\"0\">Regional Network Dominance:<\/b> A wide &#8220;National&#8221; network is less important than a &#8220;Local&#8221; network. For your family in <b data-path-to-node=\"6,1,0\" data-index-in-node=\"115\">Gurugram<\/b>, verify that the top-tier multi-specialty hospitals in your neighborhood are on the insurer&#8217;s cashless panel.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"6,2,0\"><b data-path-to-node=\"6,2,0\" data-index-in-node=\"0\">Dynamic Customization:<\/b> Modern GMCs allow you to add high-value &#8220;Riders&#8221; like <b data-path-to-node=\"6,2,0\" data-index-in-node=\"77\">Maternity<\/b> and <b data-path-to-node=\"6,2,0\" data-index-in-node=\"91\">Baby Day One Cover<\/b>. These are particularly vital for young workforces and families reaching major milestones.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"6,3,0\"><b data-path-to-node=\"6,3,0\" data-index-in-node=\"0\">Service Over Paperwork:<\/b> A &#8220;simple&#8221; claim settlement process is a major employee retention factor. Insurers who offer <b data-path-to-node=\"6,3,0\" data-index-in-node=\"117\">paperless, app-based claim tracking<\/b> and AI-supported settlements provide much higher &#8220;Peace of Mind.&#8221;<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"6,4,0\"><b data-path-to-node=\"6,4,0\" data-index-in-node=\"0\">Reliability Metrics:<\/b> A high Incurred Claim Ratio (typically 75%\u201390%) suggests that the insurer is actively honoring claims. This gives policyholders the confidence that their financial security is in reliable hands.<\/p>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Group health insurance covers a group of employees, in which the <a href=\"https:\/\/securenow.in\/insuropedia\/how-can-you-assess-if-you-are-paying-a-fair-price-for-group-health-insurance\/\">premium<\/a> is usually borne by the employer. Hence, an employer needs to consider the cost or premium of a health plan while availing of the coverage for their employees. So should you select Group Mediclaim based on the premium? No, the premium is not the only factor to consider. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">While premium cost is important, organizations should also consider factors like coverage limits, network hospitals, claim settlement process, etc. They should also consider and additional benefits to ensure comprehensive and suitable coverage for their employees&#8217; healthcare needs. An employer must choose corporate health insurance companies based on other factors too.\u00a0<\/span><\/p>\n<ol>\n<li>\n<h4><b> Policy benefits and features<\/b><\/h4>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Group health insurance plans offer a variety of benefits and features such as:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Hospitalization cover<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Pre and post-hospitalization cover<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Coverage for pre-existing illness without any waiting period<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Maternity cover<\/span><\/li>\n<li><span style=\"font-weight: 400;\">New-born baby cover<\/span><\/li>\n<li><span style=\"font-weight: 400;\">AYUSH treatment cover and d<\/span><span style=\"font-weight: 400;\">aycare procedures<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Daily cash allowance<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Critical illness as an add-on cover.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Insurers also offer free health check-ups regularly and many such valuable features. You can customize the <\/span><span style=\"font-weight: 400;\">group medical insurance coverage<\/span><span style=\"font-weight: 400;\"> based on your employees\u2019 requirement, their overall health, and also based on what your competition is offering to their employees.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Based on your customization, corporate health insurance companies charge the premium. The best thing is to do comparison shopping wherein you can compare the benefits and costs of policy and then make a rational decision.<\/span><\/p>\n<ol start=\"2\">\n<li>\n<h4><b> Network hospitals<\/b><\/h4>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Need to consider the Hospital network of insurance companies needs while buying group health insurance. Opting for an insurer with a wider network of hospitals provides greater access to healthcare facilities, more choices for medical services, and potentially lower out-of-pocket expenses. Companies with a wider hospital network including the most preferred hospitals of your employees in their list can be a good match for you.<\/span><\/p>\n<ol start=\"3\">\n<li>\n<h4><b> Claim settlement process<\/b><\/h4>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The prime purpose of providing medical insurance coverage to your employees is to secure them and to provide financial service when there is a medical emergency without any hassles. A simple claim settlement process ensures peace of mind by providing a hassle-free and efficient experience for policyholders. It reduces stress and uncertainty, allowing individuals to focus on their health and well-being. They need not worry about complex procedures or delays in receiving the reimbursement for their medical expenses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hence, it is important to choose corporate health insurance companies with a simple claim settlement process and the ones that offer the best quality services and cashless facilities at the time of claim.<\/span><\/p>\n<ol start=\"4\">\n<li>\n<h4><b> Claims settlement ratio<\/b><\/h4>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The claim settlement capacity of corporate health insurance companies can be known by their incurred claims ratio. CSR indicates the insurer&#8217;s reliability in settling claims promptly, giving policyholders confidence that their claims will be honored and paid in a timely manner. Hence, it is good to go with the insurer having a higher incurred claims settlement ratio for the smooth settlement of claims.\u00a0<\/span><\/p>\n<h3 data-path-to-node=\"2\">Summary: Selection Benchmarks for Group Mediclaim<\/h3>\n<div class=\"horizontal-scroll-wrapper\">\n<div class=\"table-block-component\">\n<div class=\"table-block has-export-button new-table-style is-at-scroll-start is-at-scroll-end\">\n<div class=\"table-content not-end-of-paragraph\" data-hveid=\"0\" data-ved=\"0CAAQ3ecQahgKEwiexaHyr5STAxUAAAAAHQAAAAAQ1wQ\">\n<table data-path-to-node=\"3\">\n<thead>\n<tr>\n<td><strong>Factor<\/strong><\/td>\n<td><strong>Primary Metric<\/strong><\/td>\n<td><strong>2026 Strategic Importance<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span data-path-to-node=\"3,1,0,0\"><b data-path-to-node=\"3,1,0,0\" data-index-in-node=\"0\">Premium Cost<\/b><\/span><\/td>\n<td><span data-path-to-node=\"3,1,1,0\">Cost per Life \/ Total Budget.<\/span><\/td>\n<td><span data-path-to-node=\"3,1,2,0\">Essential for budgeting but secondary to quality.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"3,2,0,0\"><b data-path-to-node=\"3,2,0,0\" data-index-in-node=\"0\">Incurred Claim Ratio<\/b><\/span><\/td>\n<td><span data-path-to-node=\"3,2,1,0\">Claims Paid vs. Premium Earned.<\/span><\/td>\n<td><span data-path-to-node=\"3,2,2,0\">Predicts the insurer&#8217;s reliability and future hikes.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"3,3,0,0\"><b data-path-to-node=\"3,3,0,0\" data-index-in-node=\"0\">Hospital Network<\/b><\/span><\/td>\n<td><span data-path-to-node=\"3,3,1,0\">% of Reputed Local Hospitals covered.<\/span><\/td>\n<td><span data-path-to-node=\"3,3,2,0\">Critical for ensuring a &#8220;Cashless&#8221; experience.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"3,4,0,0\"><b data-path-to-node=\"3,4,0,0\" data-index-in-node=\"0\">Customization<\/b><\/span><\/td>\n<td><span data-path-to-node=\"3,4,1,0\">Inclusion of Maternity\/Newborn\/AYUSH.<\/span><\/td>\n<td><span data-path-to-node=\"3,4,2,0\">Essential for life-stage planning (e.g., June 2026).<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"3,5,0,0\"><b data-path-to-node=\"3,5,0,0\" data-index-in-node=\"0\">Claim Process<\/b><\/span><\/td>\n<td><span data-path-to-node=\"3,5,1,0\">Digital Turnaround Time (TAT).<\/span><\/td>\n<td><span data-path-to-node=\"3,5,2,0\">Reduces employee stress during emergencies.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"3,6,0,0\"><b data-path-to-node=\"3,6,0,0\" data-index-in-node=\"0\">Tax Advantage<\/b><\/span><\/td>\n<td><span data-path-to-node=\"3,6,1,0\">100% Business Expense.<\/span><\/td>\n<td><span data-path-to-node=\"3,6,2,0\">Lowers the &#8220;effective cost&#8221; for the employer.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<ol start=\"5\">\n<li>\n<h4><b> Premium<\/b><\/h4>\n<\/li>\n<\/ol>\n<h4><span style=\"font-weight: 400;\">Cost is also an important consideration along with all the other factors while availing of a group <a href=\"https:\/\/securenow.in\/insuropedia\/factors-affecting-the-cost-of-a-group-health-insurance-policy\/\">health insurance plan<\/a>. You can use a <\/span><span style=\"font-weight: 400;\">group medical insurance premium calculator<\/span><span style=\"font-weight: 400;\"> to know the quotes of the health insurance company based on your coverage requirement.\u00a0<\/span><\/h4>\n<h3 data-path-to-node=\"8\">Frequently Asked Questions (FAQs)<\/h3>\n<h4 data-path-to-node=\"9\"><b data-path-to-node=\"9\" data-index-in-node=\"0\">Q1: Is the premium for a Group Health Plan fully tax-deductible for the company?<\/b><\/h4>\n<p data-path-to-node=\"9\"><strong>A)<\/strong> Yes. In 2026, any premium paid by an employer toward the group health insurance of its employees is treated as a <b data-path-to-node=\"9\" data-index-in-node=\"194\">100% tax-free business expense<\/b>. This reduces the company\u2019s taxable income while providing a vital benefit to the staff.<\/p>\n<h4 data-path-to-node=\"10\"><b data-path-to-node=\"10\" data-index-in-node=\"0\">Q2: What is the &#8220;Incurred Claim Ratio&#8221; and why is it better than just a &#8220;Settlement Ratio&#8221;?<\/b><\/h4>\n<p data-path-to-node=\"10\"><strong>A)<\/strong> The <b data-path-to-node=\"10\" data-index-in-node=\"96\">Incurred Claim Ratio (ICR)<\/b> tells you how much of the premium the insurer spent on claims. If it&#8217;s too low (e.g., 40%), they might be too strict. If it&#8217;s too high (e.g., 110%), your premium will likely jump next year. A healthy ICR is usually between <b data-path-to-node=\"10\" data-index-in-node=\"346\">75% and 90%<\/b>.<\/p>\n<h4 data-path-to-node=\"11\"><b data-path-to-node=\"11\" data-index-in-node=\"0\">Q3: Can I add &#8220;AYUSH&#8221; (Ayurveda\/Yoga) treatments to my group policy?<\/b><\/h4>\n<p data-path-to-node=\"11\"><strong>A)<\/strong> Yes. Most modern 2026 group plans allow for <b data-path-to-node=\"11\" data-index-in-node=\"113\">AYUSH treatment coverage<\/b> as an inclusion. This is increasingly popular for employees seeking holistic healthcare options alongside traditional Allopathy.<\/p>\n<h4 data-path-to-node=\"12\"><b data-path-to-node=\"12\" data-index-in-node=\"0\">Q4: How does a &#8220;Newborn Baby Cover&#8221; differ from &#8220;Maternity Cover&#8221;?<\/b><\/h4>\n<p data-path-to-node=\"12\"><strong>A)<\/strong> Maternity cover pays for the delivery expenses. <b data-path-to-node=\"12\" data-index-in-node=\"115\">Newborn Baby Cover<\/b> (specifically &#8220;Day One&#8221; cover) protects the baby from the moment of birth. This is crucial for neonatal care, which is often excluded or delayed in personal\/retail policies.<\/p>\n<h4 data-path-to-node=\"13\"><b data-path-to-node=\"13\" data-index-in-node=\"0\">Q5: Should I buy a plan that has &#8220;No Room Rent Capping&#8221;?<\/b><\/h4>\n<p data-path-to-node=\"13\"><strong>A)<\/strong> &#8220;No capping&#8221; is great for employees but makes the policy very expensive for the company. A better balance in 2026 is often the <b data-path-to-node=\"13\" data-index-in-node=\"184\">&#8220;Single Private AC Room&#8221;<\/b> category, which ensures a high standard of care without the extreme costs of &#8220;Suite&#8221; rooms.<\/p>\n<p>Please make a faq schema for the following questions, and don&#8217;t change any existing questions and answers.<br \/>\nFrequently Asked Questions (FAQs)<br \/>\nQ1: Is the premium for a Group Health Plan fully tax-deductible for the company?<\/p>\n<p>A) Yes. In 2026, any premium paid by an employer toward the group health insurance of its employees is treated as a 100% tax-free business expense. This reduces the company\u2019s taxable income while providing a vital benefit to the staff.<\/p>\n<p>Q2: What is the &#8220;Incurred Claim Ratio&#8221; and why is it better than just a &#8220;Settlement Ratio&#8221;?<\/p>\n<p>A) The Incurred Claim Ratio (ICR) tells you how much of the premium the insurer spent on claims. If it&#8217;s too low (e.g., 40%), they might be too strict. If it&#8217;s too high (e.g., 110%), your premium will likely jump next year. A healthy ICR is usually between 75% and 90%.<\/p>\n<p>Q3: Can I add &#8220;AYUSH&#8221; (Ayurveda\/Yoga) treatments to my group policy?<\/p>\n<p>A) Yes. Most modern 2026 group plans allow for AYUSH treatment coverage as an inclusion. This is increasingly popular for employees seeking holistic healthcare options alongside traditional Allopathy.<\/p>\n<p>Q4: How does a &#8220;Newborn Baby Cover&#8221; differ from &#8220;Maternity Cover&#8221;?<\/p>\n<p>A) Maternity cover pays for the delivery expenses. Newborn Baby Cover (specifically &#8220;Day One&#8221; cover) protects the baby from the moment of birth. This is crucial for neonatal care, which is often excluded or delayed in personal\/retail policies.<\/p>\n<p>Q5: Should I buy a plan that has &#8220;No Room Rent Capping&#8221;?<\/p>\n<p>A) &#8220;No capping&#8221; is great for employees but makes the policy very expensive for the company. A better balance in 2026 is often the &#8220;Single Private AC Room&#8221; category, which ensures a high standard of care without the extreme costs of &#8220;Suite&#8221; rooms.<\/p>\n<h4><b>About The Author<\/b><\/h4>\n<p><strong>Mayank Sharma\u00a0<\/strong><\/p>\n<p><strong>MBA Finance<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Offering a good group medical insurance plan can give employees a sense of security help retain the best talent and strengthen their motivation to drive your business towards heights of success.\u00a0As an employer, you can get tax benefits on the amount of premium paid towards the group medical insurance policy. Corporate health insurance companies are [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_lmt_disableupdate":"no","_lmt_disable":"no","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1,289],"tags":[48],"class_list":["post-16147","post","type-post","status-publish","format-standard","hentry","category-group-health-insurance","category-pricing-group-health-insurance","tag-group-health-insurance"],"acf":[],"modified_by":"SecureNow","_links":{"self":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/16147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/comments?post=16147"}],"version-history":[{"count":29,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/16147\/revisions"}],"predecessor-version":[{"id":35594,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/16147\/revisions\/35594"}],"wp:attachment":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/media?parent=16147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/categories?post=16147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/tags?post=16147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}