The health insurance portfolio encompasses a wide range of plans and benefits. There are plans for individuals, families, specific diseases, and so on. Fundamentally, everyone should invest in a health insurance policy to secure their finances in the event of medical emergencies. That said, one of the best health insurance coverage plans for the corporate sector is a group health or business group health insurance plan.
An employer has the option to acquire a group health policy for their employees. The employer can procure the group health policy from an insurance company, making payment of the corresponding insurance premium. This arrangement ensures insurance coverage for employees against health risks in accordance with the policy’s terms and conditions.
Continue reading to understand the significance of a group health insurance plan for both employers and employees!
Importance of Group Health Insurance for Employees
Group health insurance policies are designed for employees, offering financial support for the employee and their family members. A comprehensive health policy with valuable features serves as a supportive resource during medical challenges. Below are the reasons why every employee should possess a group health insurance plan:
1. No Waiting Period
Ideally, the treatment costs for pre-existing diseases like diabetes, hypertension, etc., are not covered under a health insurance plan. An individual health insurance policyholder needs to wait for a certain period to claim for the treatment of such diseases. But, that’s not the case for group health insurance policyholders. Group policyholders can claim for such ailments from day one of the insurance policy commencement. They don’t need to bear the expenses of treatments for pre-existing diseases.
2. Quick Claims
As a group health insurance plan for employees is a benefit provided to the employees by their employer, claims under a group health insurance plan are given priority. This ensures a streamlined and hassle-free process for the employee. The Third Party Administrator and the insurance company primarily oversee it.
3. Maternity Coverage Benefit
Maternity and childbirth coverage in health insurance policies typically require an additional premium as an add-on. However, employees covered by a group health insurance or business group health insurance plan enjoy this coverage without the need to pay any extra premium. The primary portion of the hospital bill will be covered by the employer’s insurance company. Additionally, the insurance extends coverage to the newborn baby for 90 days after birth. Following this period, the baby can be included as a dependent in the base plan.
4. No Premium up to 5 Dependents
While a policyholder needs to pay more premium for each member insured under a normal health insurance policy, employees under a group health insurance policy can add up to 5 dependents without paying any additional premium.
5. No Health Check-up Required
You must be already aware that a standard health insurance policy typically necessitates a preliminary health check-up. However, when covered under group health insurance policies, employees usually do not need to undergo a medical examination to enroll in a group health insurance coverage plan.
Importance of Group Health Insurance for Employers
The dynamics of the employee-employer relationship are evolving in contemporary times. Many companies acknowledge the significance of their workforce and actively implement measures to retain dedicated employees.
Let’s explore the reasons why a robust health insurance plan or a business group health insurance policy is crucial for employers:
1. Increased Employee Retention
The dynamics of the employee-employer relationship are evolving in contemporary times. Many companies acknowledge the significance of their workforce and actively implement measures to retain dedicated employees.
2. Taxation Benefits
Procuring health insurance for employees provides the company with tax advantages.
3. Sense of Security for Employees
Financial assistance during challenging times provides employees with a sense of security, allowing them to seek the highest quality medical treatment for any health condition.
Final Words
A group health or business group health insurance policy for employees remains advantageous only as long as the individual is affiliated with the employer. These plans terminate upon cessation of employment with the specific company or upon retirement, necessitating the purchase of a new health insurance plan. This situation may present challenges in terms of medical check-ups and higher premium amounts. Hence, it is strongly recommended that individuals establish a comprehensive health insurance portfolio, encompassing plans such as Individual, Group, Family-Floater, and Critical Illness Health insurance, to ensure financial security during medical issues.
To avail of the best group health insurance benefits, invest in a plan offered by Taylor Benefits Insurance Agency!
About Author
