The pandemic has caused people to take their health more seriously. And with rising healthcare costs and expensive treatments, they are now seeking health benefits in the form of employee healthcare insurance.
To this effect, individuals prefer employers that offer them comprehensive health coverage. Employers, too, recognize this need by offering group health insurance policies covering employees and their families. So, what is employee health insurance cover, and what should you know about it? Let’s find out below
What Is Employee Health Insurance Coverage?
Employee health insurance coverage is a cluster of policies purchased by an employer/organization for the health benefit of employees. It is also referred to as a group health insurance plan.
In addition to health benefits for employees, the coverage entails several advantages for the organization as well. The premium on employee health insurance is usually lower as the risk involved is spread across a group of people. This helps companies reduce healthcare costs and build a value-rich relationship with employees.
Certain types of employee health insurance schemes also allow employees to cover immediate family members of employees. In other words, employee health insurance can also be looked at as a holistic health wellness plan established by an employer for the employees. Read on to know more.
7 Must-Known Facts About Employee Healthcare Insurance Coverage
Here’s all you need to know about employee healthcare insurance policies:
1. What does employee health insurance cover?
Employee health insurance policies offer coverage for hospitalization, including pre and post-hospitalization expenses. They also cover hospital cash allowance and fee reimbursements for medical expenses incurred on doctor visits.
In some cases, employees can also enjoy maternity benefits, including pregnancy costs, health check-ups, and more, as part of group health insurance.
Employee health insurance also includes pre-existing disease coverage with no waiting period. This is a major health benefit for employees as individual health insurance coverage comes with a pre-defined set of days before one can raise a claim for pre-existing ailments.
Top 10 features of group health insurance policy that make it totally worth it!
2. Who pays for employee health insurance coverage?
Employees do not have to pay for employee health insurance to receive the health benefits under the plan. The premium is paid by employers as a prerequisite to the employees for being part of the organization.
However, regardless of who pays, employee health insurance policies are great for both employer and employees. The latter gains a wide range of healthcare benefits, while the former wins over a loyal workforce and better organizational results!
At Loop, companies stand to benefit from low premium rates and wide coverage with our group insurance plans. Click here to know more!
3. Why should companies offer employee health insurance?
Of late, there’s been a massive shift of focus to preventive healthcare. And employee health insurance is part of it. Healthcare benefits at work are no more restricted to regular check-ups and hospitalization costs but also include the overall well-being of employees.
In case you’re wondering, read more on why health and wellness is important for employees?
At Loop, we help employers cover a wide range of healthcare benefits. Initiatives such as 24X7 doctor consult with specialists, focus on wellness and wellbeing via various sessions like fitness classes, mindfulness, financial wellness, etc., and ensure minimal intervention from the HRs end. Time to give your team amazing health benefits!
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4. What are the advantages of employee healthcare insurance policies?
Employee healthcare insurance offers a wide range of aids. Apart from making healthcare affordable and accessible for employees and their families, it includes several advantages for employers.
Healthier employees allow companies to bolster overall productivity and fetch higher results. In addition to this, extending healthcare insurance enables employers to stay compliant with government mandates and compliance requirements.
They can also avail of income tax benefits on the premium paid. Since the premium amount is counted as a business expense, companies can save a substantial amount in taxes by extending group insurance to employees.
Dive in-depth into what are the advantages of group health insurance policy? So you can give your employees the care they deserve!
5. Is it mandatory to have employee healthcare insurance?
Yes, employee healthcare insurance has to be provided by employers compulsorily. Post the Covid-19 lockdown, the Government of India in April 2020 also introduced a mandate to implement the change.
As per the Industrial Regulatory and Development Authority on India (IRDAI) circular in this regard, comprehensive health insurance policies for employees must be provided by all companies.
Read all about the mandate in this article - is medical insurance mandatory for employees in India?
To stay compliant with the law, companies can explore a range of insurance plans as suitable to them. At Loop, we offer customized group insurance policies that you can enhance as per your requirements.
6. Limitations of employee healthcare insurance
While group healthcare insurance entails several employers and employee benefits, it comes with limitations, too. One of the main limitations is it is primarily an employer-based insurance plan, and hence employees lose out on the cover once their association with the company ends.
For companies offering employee healthcare insurance, this comes with added costs in terms of claims management and arranging various employee wellness initiatives. However, this is no reason why you should refrain from including employee health coverage in your workplace wellness plan.
With a partner like Loop, you can ensure that there’s minimal intervention from your end as we take care of 95% of the healthcare-related work. All you have to do is watch your engagement and employee satisfaction rise!
Don’t believe us? Read all about Ishwari’s experience about how she, Livio's HR saves 99% of time on health benefits with Loop
7. Employee healthcare or individual insurance: which is better?
Both individual and group health insurance policies differ with regard to their underlying terms, conditions, and features. Employee healthcare is available at lower costs and provides coverage for pre-existing diseases as opposed to individual insurance.
On the other hand, an individual insurance policy may offer a better sum insured and more flexibility to the employees. Choosing between the two, therefore, is an individual choice. As often said, there’s no one size fits all – especially in the case of insurance!
Purchasing insurance is a big decision. So it’s best to know the difference between group health insurance Vs individual health insurance.
Say Yes to Employee Healthcare Insurance!
It is evident from the above that employee health insurance is just as important (if not more!).
This is the prime reason why companies must look at including comprehensive group health insurance in their employee wellness plan. We at Loop help companies achieve this in more ways than one!
Download this ultimate guide to explore the latest trends in giving your employees the benefits they deserve.
In just 2 years, Loop's become the preferred insurance partner for 300+ companies and over 150,000 people trust us with their healthcare and insurance! Come, join us and experience the modernity of employee healthcare insurance today.
