Opting the Suitable Health Plan for your Employees

One of the most important employment benefits is health insurance. For employees, it makes them secure with regard to health-associated costs. For employers, it provides tax deductions. As per various surveys, health insurance is one of the main reasons for better quality recruitment, employee satisfaction, and employee retention. Well, “Health Insurance for Employees” is a must and everyone should provide health insurance to their employees.

How many of you know about the group health insurance policy, very few people know about these policies but group health insurance helps a company to maintain its decorum of a company. Health Insurance for Employees is also known as the group health insurance policy and the benefit of this plan is, that the more people will insure with the plan the best coverage and benefit option you will get from the insurance company. Most companies provide health insurance policies to their employee, and with this kind of act the companies make their employees valuable and as employees, it feels good.

If you are an employer, you must be spoiled for choices. There are innumerable insurance providers offering different insurance packages for corporates. So how do you choose the right one? In this article, we share with you a few pointers which will help answer the question.

Type of Health Insurance to go for

So, the first thing is to know which type of health insurance is right for you. Small businesses usually have budgetary constraints and hence traditional health insurance plans are the right ones for them. Traditional health insurance plans have flexibility through which they can visit any hospital or doctor.

If your budget is higher, go for managed care plans. They come with a ‘fee for service’ through which employees can take the benefit of traditional insurance. These are more professionally managed than traditional insurance plans but come with a higher cost. Before choosing a plan, first, decide what your business needs and what benefits you want to offer to your employees. You should make a list that should include points like maternity coverage, mental health, dental facilities, etc. You also need to consider what facilities you want to offer to your employees and what facilities to your dependants.

Choosing the right policy

The next task at hand and the biggest of course is to choose the right insurance policy. Here are a few things to consider while doing the same:

Coverage: Study the details of coverage completely. Read the fine print, especially terms and conditions. Most policies have limited coverage for particular conditions. This is true mostly for long-term illness and pre-existing conditions where such low limits exist.

One thing, you should be clear of as an employer is the indemnity policy and the dread disease policy. In the hospital indemnity policy, a certain sum is paid each day that the employee is in the hospital. However, the level may or may not meet the daily cost of a hospital stay. Dread disease policies, on the other hand, cover certain illnesses, but they are usually more expensive.

Being an employer, you always looking for all-around growth with taking some low risk, and providing insurance policy to employees means providing them service that makes their burden easy.

Cost: The second most important thing to consider is cost – both to the company and employees. The things to consider within cost include the cost of the plan, deductibles, co-insurance costs, etc. Then you should consider how much can the company afford and what percentage of salaries it contributes. In case the company is unable to bear the entire cost if some of the amounts can be contributed by employees. In case an employee has to contribute something, it should be in line with the employee’s salary.

Restrictions: Before making the final decision, check out if the policy has any restriction which does not go in line with your business operations. For example, in some cases, the medical coverage does not cover hospitals across the country. However, if some of your employees travel for work frequently, you will need a policy that covers maximum hospitals even in remote areas.

Reimbursements: Reimbursements are a very important aspect. The coverage should be commensurate with the average hospital cost or doctor charges. If your employees have to shell out a lump sum amount even after having medical insurance, then the entire exercise becomes futile. The best way to find out if the reimbursement amount is sufficient is to check and verify the amounts from a physician.

Also Check: How to Find The Best Health Insurance Company in India

Some Group Health Insurance Policy

Your employees trust you, they depend on you for their salary and other benefits.  At the end of the day, if you make an investment for your employees, and then your employees don’t get the requisite benefit, both you and your employees will be at a loss. Hence, it is your duty to conduct due diligence before purchasing insurance for your employees.