Today, the employment market is extremely competitive. Finding and retaining talented employees has become increasingly difficult. Big companies and well-funded startups are fighting to recruit and retain skilled employees. The problem is even more acute for small businesses which can’t afford to pay high salaries.

In such an environment, offering a comprehensive health insurance policy for employees can be one way to retain them.

Group Health Insurance is one way that employers can offer comprehensive healthcare to employees while also minimizing expenses. If you are a small business owner looking to provide affordable healthcare for your employees, a group mediclaim policy might be the best option. A comprehensive group health insurance plan offers peace of mind to employees, ensuring they are well taken care of in case of an unforeseen medical emergency.

This blog will explore why group plans are an excellent solution and how they integrate with other aspects of payroll processing, such as taxes and benefits administration.

What Is Health Insurance?

Health insurance is a way of offering partial or complete reimbursement for medical expenses. The policy can be issued to one person, such as an individual health plan, or it can cover multiple people.

Group Health Insurance Policies are generally purchased by employers on behalf of their employees.

A Group Health Insurance Policy offers advantages for both the employer and employee. These policies are also referred to as group mediclaim policies and can cover many employees.

How Does Group Health Insurance Work?

A Group Health Insurance Policy is usually purchased by an employer on behalf of the employees. It insures a whole group of company employees together for their health insurance requirements. Additionally, a Group Health Insurance Policy can be extended to cover family members (spouse and parents) as well as dependent children by paying an additional premium.

Group Health Insurance Policies can also be customized with respect to coverages and limits.

Benefits of Group Health Insurance Policies

Group Health Insurance Policies is a win-win for employees as well as employers. Some of the benefits of group health insurance plans for both employers and employees are listed below:

Advantages of Group Health Insurance Plans for Employers

1. A Well-Motivated Workforce is Crucial for an Organisation’s Success

One of the keys to an organisation’s success is a well-motivated workforce. Employees aware that their medical needs are taken care of with a comprehensive health insurance policy will have mental peace and satisfaction. A well-motivated and happy workforce has better productivity and thus contributes to an organisation’s success. Moreover, companies can use a group health insurance policy as a perk to attract talented new employees.

2. Group Health Insurance is Cheaper than Individual Health Insurance Policies

One of the biggest advantages of Group Health Insurance Policies is cost savings as compared to individual health insurance policies. The premiums for group health insurance plans are cheaper than individual health plans with similar benefits because the risk is spread across a larger pool of insured individuals. As a result, employees can avail comprehensive health insurance at affordable rates through their employers.

3. Tax Savings for Employers

Employers can claim tax deductions towards premiums paid for group health insurance plans. This is a big advantage from an employer’s perspective and makes a Group Health Insurance Policy a mutual win-win for both parties involved.

4. Group Health Insurance Plans Can Be Customized

Another significant advantage of Group Health Insurance Plans for employers is that the features of a Group Health Insurance Policy can be customized. Employers are free to select the sum insured, room rent capping in a GMC policy, co-payment clauses, and other benefits like maternity benefits, etc. Depending on the features selected, the premiums for Group Health Insurance Policy will either increase or decrease. As a result, employers have a lot of flexibility to add or remove features depending on their budget.

Advantages of Group Health Insurance Plans for Employees

1. No Waiting Period for Pre-Existing Diseases

The biggest advantage of Group Health Insurance Policy for employees is that the waiting period can be waived off for pre-existing diseases, whereas individual or family floater health insurance plans typically have a waiting period of 3-4 years for pre-existing diseases.

2. Easier Claim Settlement Process

The claim settlement process in Group Health Insurance Plans is much simpler. Employees only need to connect with their employer with the relevant documents, whereas, in individual health insurance plans, the insured person will have to navigate the process themselves.

3. Maternity Coverage without Waiting Periods

Most individual or family floater health insurance plans provide maternity benefits only after a waiting period of 2-3 years. However, maternity benefits can be provided without any waiting periods under a Group Health Insurance Policy. This is a significant benefit for female employees or the spouses of male employees.

4. No Need for Medical Check-up

Individual Health Insurance Policies often require all people over 50 years of age to undergo a medical check-up before they can avail of a health insurance policy. However, there are no such restrictions under Group Health Insurance Policies.

5. Peace of Mind for the Employee

Employees covered under a Group Health Insurance Policy can rest assured that their medical expenses will be taken care of in case of a medical emergency. This is crucial since medical expenses are skyrocketing today, making comprehensive health insurance coverage of paramount importance.

Real-World Examples from India

Consider the case of Zoho Corporation, an Indian software development company known for its employee-centric policies. Zoho offers comprehensive health insurance coverage to its employees and their families, significantly contributing to its low employee turnover rate and high employee satisfaction.

Another example is Flipkart, one of India’s leading e-commerce platforms. Flipkart's extensive group health insurance policy not only covers employees but also extends to their families, including coverage for pre-existing diseases from day one. This has played a pivotal role in attracting top talent in a fiercely competitive market.

Conclusion

As you can see, Group Health Insurance is an excellent option for both employers and employees. It serves as a motivating tool and perk for the employees while employers benefit from increased productivity.

Barik Insurance has tie-ups with the best group health insurance companies in India for Group Health Insurance requirements of employers. We will also assist you in comparing Group Health Insurance Quotes across multiple companies and help you in selecting the best quote as well.

We can help you understand how to keep costs low while ensuring that all of your employees are covered.

Group Health Insurance / General Insurance for Small Businesses

There is a lack of expert insurance advice for small businesses in India. However, we have a vision to cater to the insurance requirements of small businesses. Barik Insurance specializes in Health and General Insurance for small businesses. We promise quick quotes within 24 hours. So, if you have a small business looking to purchase Group Health Insurance for employees and General Insurance don’t hesitate to reach out to us.