How Does Corporate Health Insurance Work | Loop
Want to know How Does Corporate Health Insurance Work? Then this post is for you. Inside you'll learn how corporate health insurance works, and its pros
In today's work culture, everyone is attempting to create a balance between personal and professional responsibilities .
Managing to live a healthy lifestyle is a crucial component of balancing your personal life with your professional life, and taking certain steps to manage and secure your health can pay off in the long run.
Thus, employers now extend employee health benefits , which include providing the employees with health insurance through group insurance plans, in order to manage and balance the health, productivity, and engagement of their employees.
Check out the top 10 employee benefits you can offer to your employees!
Corporate Health Insurance is an employer sponsored insurance plan that covers:
- Added Health Cover
- Pre-Existing Disease Cover
- Maternity Coverage
- In-Patient Hospital Service
- Pre and Post Hospitalization Expenses
- Emergency Ambulance Charges
- Domiciliary Hospitalization Treatment
In this blog, you will read about:
- How Corporate health insurance works
- Advantages and disadvantages of corporate health insurance
How can you use corporate health insurance to improve employee health and wellness?
Since these plans are primarily offered in a corporate setting, these policies are often known as corporate health insurance.
Now, let’s look into how corporate health insurance works.
What Is Corporate Health Insurance?
Corporate employee health insurance is a type of employer-sponsored coverage offered by companies and employers to their employees.
In simple terms, it is a kind of group health insurance plan undertaken by the company and the employer that protects them as well as their employees. Hospitalization, critical illness coverage, maternity coverage, and other benefits are included in corporate health insurance plans.
The plans are usually extended beyond just the employees of the company, to cover their immediate family, too, covering the treatment and hospitalization expenses of all the insured individuals in the event of an accident or illness.
Did you know that Corporate health Insurance is also known as Group Health Insurance ?
What Do Corporate Health Plans Cover?
Corporate Health Insurances are designed to provide a flexible health insurance plan to your employees, in order to provide them with financial and medical security. Investing in corporate health plans for your employees shows that you care about their general well-being, and are willing to invest in their futures.
Although corporate health plan coverages can vary from provider to provider, they usually include pre and post-hospitalization expenses, emergency ambulance charges, daycare, and more.
Let’s look into what Corporate Health Insurance plans can cover:
1. Added Health Cover:
Employees with corporate health insurance policies have the option of adding additional family to their health insurance plans. This gives them an extra layer of protection and added cover.
2. Pre-Existing Disease Cover:
Some companies offer their employees health insurance cover for pre-existing medical problems, even chronic illnesses and illnesses with risk factors like diabetes, hypertension, and the like, and these coverages and benefits are available to them from day one.
3. Maternity Coverage:
Certain companies offer comprehensive maternity health insurance to their female employees, as well as families and spouses of male employees. These benefits also cover the costs of childbirth.
Furthermore, many organizations cover newborn newborns without a waiting time, under their company health insurance plan.
4. In-Patient Hospital Service:
In cases of accidents or sudden incidents, or surgeries or radiation, the employee of the company, or their dependent, might have to be hospitalized. Corporate Health Insurance covers all such in-patient hospital services at network hospitals.
5. Pre and Post Hospitalization Expenses:
Several medical tests are performed prior to a patient's admission to the hospital, as doctors leave no stone unturned in order to provide the best care possible.
Prior to hospitalization, certain tests, such as blood testing, urine tests, and X-rays, are covered by the company's health insurance coverage.
Similarly, medications, follow-ups, and tests are examples of post-hospitalization expenses that are covered after the insured has been discharged from the hospital.
The duration of post-hospitalization coverage and the types of post-hospitalization therapy covered are determined by the type of policy.
6. Day Care:
Daycare procedures are procedures that do not require extended periods of hospitalization anymore, due to the advancement in medicine and technology.
Health insurance companies have thus now made it possible for employees and their dependents to stay covered under corporate health insurance even for daycare procedures, bypassing the old 24-hour hospitalization rule.
7. Emergency Ambulance Charges:
In case of emergencies, corporate health insurances also cover the charges of ambulances that take the patient to or from hospitals.
8. Domiciliary Hospitalization Treatment:
Domiciliary hospitalization is a benefit in many corporate health insurance plans wherein your employee, or their dependents will be covered even when they are getting treatment at home.
How Does Corporate Health Insurance Work?
Corporate Health insurance work differently from individual health insurance plans , in that the latter is purchased by individuals for themselves (and frequently their families) independently of their employer or companies.
Many people opt for corporate insurance policies for employees since they are typically less expensive than individual plans. Risk insurers help to lower overall healthcare costs by providing incentives such as discounts and specialized goods.
Employers can offer corporate insurance plans with better coverage options than would otherwise be offered because of the cost savings. Employees who choose corporate health receive higher-quality insurance, which helps them protect their long-term health.
So how does corporate health insurance work?
- It generally includes your immediate family, like your parents, spouse, and children.
- Usually, it provides a fixed sum insured amount that covers the cost of hospitalization and/or treatment.
- To increase your sum insured amount you would need to pay an additional premium
- Your policy will be discontinued once you are terminated from that workplace
Are Group Health insurance premiums tax-deductible? Find out here !
Advantages & Disadvantages Of Corporate Medical Insurance Plans
Health Insurance is one of the most important decisions to make for an individual, and just like any other important choice, it is a good idea to go through the pros and cons of corporate medical insurance plans.
1. Coverage for pre-existing diseases:
An important benefit of corporate health insurance is that it covers pre-existing conditions. It means that any medical problem that the employee or their family members may already have is covered from the start with no waiting period.
As a result, these health insurance plans have no waiting time, making them suitable for people of all ages.
2. Wider coverage for ailments at an affordable price:
Aside from not having a waiting time for pre-existing health disorders, corporate health insurance also provides more comprehensive coverage for illnesses, at a lower cost. These plans cover a wide range of health issues, including mental illnesses.
3. Medical and Financial Security:
Employees are a company's irreplaceable assets who contribute to the company's growth. As a result, it is critical to look after their health and well-being. Companies can provide their employees with group insurance health cover, giving them a sense of security and enhancing their productivity.
4. Premium is Taken Care Of:
The company pays the premium for corporate health insurance, and the employee simply has to pay the difference if they want to expand the sum assured or supplement it with another health plan.
1. Room Rent Capping:
Room rent capping means a sub-limit for hospital room rent. In a corporate health plan, the permissible room rent limit is pre-defined. Thus, if an employee chooses a room with a higher rate, they will be responsible to pay for the difference.
2. Coverage Amount:
Most company group medical plans have a limited sum assured premium amount, which, in the event of a major illness, would only cover a percentage of the total expense, not the entire amount.
3. Policy Tenure:
As long as one is employed with the company, corporate health insurance will provide coverage. The policy will be terminated when the employee's employment ends, and that person and their dependents will be without insurance cover until they find new employment.
4. Number of Insured Members:
Because not all business health insurance policies cover an employee's dependent family members, corporate health plans may not be sufficient for the entire family in cases where insurance companies limit the number of dependents covered.
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Offering corporate health insurance as an employer is very advantageous to the company.
Investing in the futures of your employees through company health insurance adds financial and medical security for your employees.
2. Cuts the cost of sick days:
Numerous working days are missed each year due to illness, which has a significant effect on a company's bottom lines. While it's true that you can't predict when your employees will become ill, employer medical insurance gives them quick access to high-quality care, allowing them to return to work sooner.
3. Decreases absenteeism:
Absenteeism is a common problem in businesses that goes unnoticed. It has the potential to lower productivity and create a negative workplace culture.
However, with company health insurance in place, your employees are more likely to seek medical attention since they know their medical bills will be covered and they will be able to get back to work fast.
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4. Reduce employee turnover and improve employee retention:
When it comes to attracting top personnel, including company health insurance as part of your benefits package helps you stand out from the competition.
At the same time, offering corporate medical insurance makes your current employees feel more valued and cared for, making them less likely to look for work elsewhere, and thus, reducing employee turnover .
5. Increases job satisfaction:
One of the most desired employee benefits is company medical insurance. Providing your employees with superior healthcare through a corporate health insurance plan lets them know that their employer cares about their health and well-being, and boosts their overall job satisfaction.
Employee healthcare handbook
A quick and easy-to-read guide for implementing employee benefits that work for you and your organization
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Corporate health insurance plans have become somewhat of common business practice, with an increased focus on health as a vital aspect of employees' ability to work productively.
Most employers who provide corporate health insurance coverage choose the insurance company and the policies based on the needs of their employees, as these additional benefits can have a significant impact on employee morale.
Check out this informative guide to explore the latest trends in giving your employees the benefits they deserve.
Affordable health insurance does not have to mean sacrificing service quality. Loop Health offers cost-effective, high-quality healthcare solutions to your employees , and you will always be provided options on corporate health insurance premiums that benefit both you and your employees.
Contact us to know how you can take advantage of group health insurance benefits and get a 2X return on your employee's health! Sign up with Loop Health here , to give your employees medical and financial security, so that they can take care of your business.
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Advantages and Disadvantages of Corporate Health Insurance plan
Health insurance is one of the most important investments you can make. Knowing more about health insurance benefits can help you decide on the most suitable health insurance plan for yourself and your family.
A corporate health insurance plan is designed for the employees of a company or organisation. It is also known as group health insurance and is offered by employers to their employees. Since Covid-19 pandemic hit in 2020, it is mandatory for companies to provide health insurance plans to their employees.
Read further to understand the types of corporate healthcare insurance, its advantages and disadvantages and the factors that influence it.
Types of Corporate Health Insurance
Based on contribution, there are two types of corporate medical insurance: a contributory plan and a non-contributory plan. Let’s have a brief look at them.
1. Contributory Plan
In a contributory health insurance plan, the employees and employers both have to pay a part of the health insurance premium to avail of the health insurance claims.
2. Non-Contributory Plan
In this type of plan, employers pay health insurance premiums without anything from the employees.
Difference between Corporate Insurance and Individual Health Insurance
Group healthcare insurance is like a company-sponsored insurance plan that takes care of the medical needs of the employees. Here is a table with the difference between corporate and individual medical insurance.
But before buying the policy, it is essential to know about the advantages and disadvantages of corporate health plans.
Advantages of Corporate Health Insurance
Corporate health insurance comes up with many added benefits like pre and post-hospitalisation help, teleconsultation, lab bookings, etc. Some of the other advantages are:
No Medical Examination
Many insurance plans require taking a pre-medical checkup depending on the age and history of medical conditions before buying it. But with corporate health insurance, there is no such requirement.
No Waiting Period
Many policies have a waiting period where you have to wait for a fixed number of days before you can raise a health insurance claim. Corporate health insurance plans do not have such waiting days and start from the first day. This can be counted as a significant advantage, as some individual health insurances have periods as long as 2-4 years.
Group health insurance gives the option to include family members in the health insurance benefits . Another advantage is that it also covers maternity -related costs. Group Health Insurances also covers the newborn baby for around ninety days under maternity-related health insurance claims.
Many insurance companies have tied up with hospitals for an easy, hassle-free experience. This benefit allows employees to settle their health insurance claims smoothly.
Preventive Healthcare and Extra Benefits
Corporate health insurance comes up with many added benefits like pre- and post-hospitalisation help, tele-consultation, lab bookings, etc.
Pre-existing diseases mean diseases you might have had before the corporate health insurance plan started. But many group insurance plans allow you to get health insurance claims for those diseases.
Above, we discussed many advantages that come with corporate health insurance. But before choosing the best health insurance , it's essential to focus on the disadvantages.
Looking for an ideal Health Insurance Plan
Disadvantages of Corporate Health Insurance
As an employee/policyholder, you don't have much leeway in tailoring the plan to your preferences. In some cases, you may be required to pay an additional fee for certain freedoms. For example, if you want to increase your coverage, you must pay the applicable premium out of pocket. Here are some other disadvantages of corporate health policies:
One of the disadvantages of corporate health insurance is the tenure period. You can only raise group health insurance claims until you're working with the organisation. The policy ends as soon as you leave the company. So in challenging situations, if you get laid off by the organisation, your policy will also terminate. This condition makes corporate health insurance less reliable due to fear of discontinuation.
You will no longer be covered by the group health policy if you are laid off by your employer or choose to leave the company. In other words, you will be covered by the policy as long as you are a member of the group, which in this case means as long as you are an employee of the company.
Not All Plans Come with Family Coverage
Many group insurance plans do not cover the family members. It is one of the significant disadvantages of corporate health insurance. In other cases, the health insurance benefits are only limited to the spouse and not the parents. For many sole breadwinners of the family with dependent children and parents, corporate health insurances are not the best health insurance. If you are in such situations, it is better to look for individual health insurance plans.
Many corporate insurance plans come up with pre-decided hospital room rent limits. So if you choose to go for a higher tariff, you'll have to pay for all the additional costs yourself. Not only the room-rent limit , but you will also have to pay the health insurance premium as well if you choose a plan higher than that of the organisation.
You may notice that the group health insurance plans have a coverage limit of only 2-4 lakhs. So, this amount will not account for much in severe accidents and diseases.
Employer Dependent Cover
As the employers pay the health insurance premiums with group health insurance, they also hold power. Your employer will have control over it. They can decide the coverage and other added benefits. Such plans end up as a generic for every employee and will not offer to you as per your needs.
Lack of Control
As an employee, you will not have much control over the health insurance benefits. In many cases, employees have to pay extra to have a plan based on their needs.
No Tax Benefit
Section 80D of the Income Tax Act provides for the health insurance premium. But since employees are not paying for the premium, they can not avail the tax benefits.
Trouble in Claiming
Since employees do not get to choose the health insurance or the coverage, they face many troubles regarding health insurance claims . Such difficulties get added up if the insurer hasn't offered a hassle-free claim.
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Difference Between Corporate Health Insurance and Personal Health Insurance
- November 5, 2022
- By Life & General
Table of Contents
Corporate Health Insurance Vs. Personal Health Insurance
It is crucial to have a health insurance plan that provides complete coverage for both you and your loved ones. There are many different types of health insurance coverage available. Corporate and individual health insurance plans are two of the most often used kind of health insurance. Although the coverage provided by each of these plans may be comparable, the qualifying requirements for each plan vary. We shall learn the distinction between group health insurance and individual health insurance in this essay. Let’s get going.
Factors Influencing Health Insurance Plans
The selection of a health insurance plan depends on various factors such as:
The cost-effectiveness of an insurance plan is the most important aspect of consideration when choosing an insurance plan. Because they are less prone to face health emergencies, younger health insurance policyholders benefit from cheaper health insurance rates. A health insurance plan’s cost is also influenced by the extras chosen and how comprehensive they are. The insurance coverage you choose can also be more expensive if you reside in a major city where healthcare expenditures are greater.
You can obtain the aforementioned plan if your employer permits employees to benefit from its corporate health insurance programme. Having said that, you should think about enhancing it with a personal or family floater health insurance plan for extra protection that may be tailored to your needs and those of your family.
The benefit an insurance offer makes a lot of difference to which type of insurance people opt for. Be it corporate or personal. Various advantages are offered by health insurance policies, depending on the type of plan chosen. People who choose comprehensive plans are eligible for more comprehensive coverage than people who choose basic policies. You can purchase add-ons that give coverage for particular costs that might occur during a medical emergency. Among other things, these add-ons provide a death benefit and accidental death coverage.
Your health insurance premium may vary depending on the type of employment you have. Your insurance premium will be greater the more risks your employment needs you to incur.
Difference between Corporate Health Insurance & Personal Health Insurance
Even though corporate and personal health insurance serves the same purpose, there are a lot of different parameters that create a difference between the two. Let us take a look at all the parameters.
Why You Should Buy Individual Health Insurance Over Corporate Health Insurance
Individual health insurance plans are intended to cover a single person’s medical bills, as opposed to corporate health insurance policies, which are made to cover several individuals. You have the right to benefit from cashless hospitalisation as well as a variety of add-ons so you may extend the scope of coverage offered to you as an insured person under this plan.
The full insured amount under a personal health insurance plan is intended to cover just one person. Such a plan cannot be amended to include a dependant.
Which is Better Corporate Health Insurance or Personal Health Insurance?
Depending on a person’s needs it is important to understand what suits the best. It could be that corporate health insurance may be better for you as compared to personal health insurance because you are a working professional. But if you are out of a job at any point, you are at risk of being uncovered.
Hence, talking to a professional with in-depth knowledge about the same is very important to make informed choices.
The Bottom Line
Be it a corporate health plan or a personal health insurance plan that you opt for, both will serve the purpose. But there are various factors as seen above in deciding what is it that you need the most. Your lifestyle, job, and profession all make a difference in the form of life insurance that you choose.
But it is important to be secured to avoid an unforeseen financial crisis in case of emergencies. This security comes from investing in insurance.
Get Insurance Advice from Insurance Expert
In order to make sure that you are taking the right decisions when it comes to planning your health and life, it is important to choose the right health insurance. This can be done by choosing an expert professional who can help understand your needs and give you the right guidance.
Life & General commenced its operations in 2001 and became one of the first brokers to be licensed and regulated by the Insurance Regulatory & Development Authority of India (IRDAI). The company primarily operates in the State of Maharashtra with offices in Mumbai and Pune. L&G has developed a portfolio across various classes including life, health, marine, property, engineering, general aviation, liability, motor and reinsurance.
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How Does Corporate Health Insurance Work?
- Sep 01, 2022
- Health Insurance
With rising pressure on the NHS, and growing demand for physical and mental wellbeing support, employers have an opportunity to create an attractive rewards package which could deliver long-term benefits for both the employees and the business. According to a recent report published by Engage Health in partnership with Hooray Health & Protection , one of the most desired benefits in the workplace is private health insurance. But what is private health insurance and how can it help your corporate business?
What is corporate health insurance?
Corporate health insurance is a type of business health insurance taken out by an employer to cover the medical bills of its employees when they receive private treatment for acute medical conditions which arise after the policy’s start date.
What’s the difference between corporate health insurance and small business health insurance?
Corporate health insurance is generally designed to cover groups with more than 100 employees compared to small and medium business health insurance which would cover companies with less than 100 employees.
With corporate groups being larger, health insurance providers might be more flexible when it comes to coverage and underwriting, and the premium per member could work out cheaper because the cost is spread out between more members. However, both corporate health insurance and small business health insurance provide similar benefits to employees and employers.
How does corporate health insurance work?
Corporate health insurance is a contract between the company and the health insurance provider, with the employee being the end user. Corporate health insurance can be part of the company’s benefits package to help attract new talent, reduce sickness absence, and increase motivation, productivity, and loyalty in employees. Consequently, private medical insurance can have a positive impact on a business’ bottom line.
For the employees, having access to health insurance through their employer means they can access private healthcare when they need it without having to wait for the NHS and their eligible medical bills are covered. They would also have more control over their treatments and feel more valued within their role knowing their physical and mental wellbeing are being supported.
Corporate health insurance benefits
Providing corporate health insurance for your employees is not a legal requirement. However, the benefits of business health insurance can bring both short-term and long-term value to the employer and the employee. Some benefits include:
How much does corporate health insurance cost?
The cost of corporate health insurance can depend on various factors such as the level of cover and benefits included in your plan, the number of employees enrolled and their average age.
Corporate health insurance vs individual health insurance
Corporate health insurance and individual health insurance are both types of private medical insurance but there are some essentials distinctions between the two. Here is a summary of the main differences between corporate health insurance and individual health insurance.
Is health insurance a business expense?
The employer is responsible of paying the total premium of the corporate health insurance policy, including the Insurance Premium Tax (the government levy on insurance premiums). However, if the corporate plan also covers the member’s families (such as partners and children), employers could recover premiums from members. Additionally, members will usually have to pay tax on the cost of their health insurance premium because corporate health insurance is considered a company benefit and it’s not a mandatory requirement.
Are you looking for corporate health insurance?
If you are looking for corporate health insurance for your business, contact us or fill in the contact form on our website and we can offer you a non-obligation quote. You can also switch to us if you already have a PMI in place.
Disclaimer: Freedom Health Insurance can’t offer advice on which cover could be best for your business. To receive independent advice and compare different providers, you could request the services of a health insurance broker.
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How does corporate health insurance work?
Working principles of corporate health insurance
Charlotte Rose Daniells
What is corporate health insurance?
How much does corporate health insurance cost, which employees are eligible for corporate health insurance, what does corporate insurance cover, benefits of offering corporate health insurance, bottom line, invest in health insurance and get cancer covered.
According to Macmillan’s latest research, cancer is the disease we fear the most in the UK; and for one in ten of us, it’s our biggest fear of all.  Understandably – as, ‘One in two people in the UK born after 1960 will be diagnosed with some form of cancer during their lifetime’.  The reality is - very few of us will get through life escaping a connection to the disease.
Offering private healthcare benefits to your employees is a great way to attract and retain talent. It’s also beneficial for the day-to-day running of your business - after all, a healthy workplace is a happy workplace.
In this article, we’re going to guide you through everything you need to know about corporate health insurance, from finding the right plan to calculating the cost of your group premium.
Corporate health insurance is an employee perk typically offered to both full-time and part-time members of a business or team. The company pays for the insurance coverage (for group insurance rather than an individual policy) and in the event where a covered employee falls sick, they can claim any necessary treatment on their insurance. The employee will typically pay a small excess, and the insurance company will cover the rest (provided that the condition or illness is covered by the insurance plan.)
Once typically a unique feature of the US workplace, corporate health insurance is now becoming more commonplace in the UK; as the NHS wait list reaches almost 7 million, more people are increasingly opting for private healthcare.
Not only is corporate health insurance great for your employees, it’s also great for your business: when your employees have access to a higher standard of treatment and shorter waiting times, they’ll spend less time off sick, minimising unforeseen absences and lost productivity.
It’s difficult to determine how much a corporate healthcare policy will cost without the specifics of your business. However, the cost of your plan will be based on a number of factors:
When applying for individual health insurance, age is typically the most determinative factor when calculating your overall financial risk. For example, over 60 health insurance will typically incur a higher premium than insurance for someone in their 20s or 30s.
When applying for group coverage, the insurance provider will usually use the average age of all your employees combined to determine an overall cost. If you have a team made up of diverse ages, this can be beneficial when it comes to costs. If your team is older, you may end up paying more.
The cost of your corporate health insurance will also depend on the type of work environment your employees are in. If your employees are working a dangerous, physically demanding job with lots of potential for injury or long-term conditions (such as physical labour, outdoor construction, working at height etc) you may end up paying a higher premium.
The cost of private healthcare varies depending where you are in the UK, and insurance costs will fluctuate to reflect this. Businesses in London can expect to pay slightly higher premiums than businesses in other areas around the UK, as prices for care and treatment in London cost more than the UK average.
When claiming treatment on their employee health insurance, your staff members will typically have to pay a small excess fee. The cost of their excess fee will directly impact the cost of the premium: the higher the excess, the lower you’ll pay as a premium (and vice versa). In addition, the larger your business, the smaller the excess fee will be for employees, as the cost is spread further.
Generally, it’s a good idea to cover all your employees if you’re going to be offering a corporate healthcare policy; this will prevent any accusations of unfair discrimination or special treatment in the workplace.
What your plan covers will depend on how much you’re willing to pay on premiums. If you’re a small business, you might find it more affordable to opt for a basic plan: basic plans will cover most essential non-emergency treatment and in-patient care. Some insurance providers actually offer specific health insurance policies for businesses with less than 250 people, with lower premiums and more affordable coverage.
If your company has the means to do so, you can offer more thorough coverage with a fully comprehensive plan: this will typically include inpatient and outpatient care, consultations, surgery, scans, as well as specialist care for both physical and mental ailments. Some plans will also offer dental care, flexible GP appointments, virtual consultations, and more.
It’s simple: corporate health insurance will only cost what you’re willing to pay. Basic plans will be a lot cheaper but more limited in what they offer, while extensive coverage will cost you more but give your employees more comprehensive healthcare coverage.
What does corporate insurance not cover?
Just like an individual health insurance plan, certain conditions and treatments won’t be covered by a corporate insurance policy. These exclusions can vary depending on your provider, but will tend to include the following:
- Emergency care
- Fertility treatment
- HIV/AIDS treatment
- Treatment for chronic illnesses
- Gender reassignment surgery
- Cosmetic surgery
- Pre-existing conditions (depending on underwriting type)
So, why offer corporate health coverage for your employees? Not only does it benefit your business, but you might also find that it boosts office productivity and morale in the office. Here are just a few reasons why offering private healthcare perks can improve your working environment:
Ongoing illnesses account for a large number of employee absences, and this is often fuelled by inadequate access to medical care, as well as long waiting times for specialist treatment. If you want to cut back on employee absences and lost productivity, it can be a good idea to include an attractive healthcare policy as part of your remuneration package.
There’s nothing worse than being forced to wait for medical treatment when you’re in constant pain or discomfort. Not only is working while sick known to increase your chances of future health problems down the line, but being unwell impacts your productivity while at work. If your employees have access to faster appointment times and treatment, the time lost to illness is reduced, and your employees are happier, more motivated, and enthusiastic to carry out their work.
With the rise of “ quiet quitting ” and the post-COVID “great resignation”, it might seem harder than ever to hold onto talented employees. The COVID pandemic reshaped how many people view their relationship to work, and since 2021, workers are continuing to resign in record numbers . One way to hold onto great employees is by offering an attractive benefits package, with comprehensive private healthcare as one of its perks.
While employees are at work to earn money and make a living, they do also want to feel valued and cared for in the workplace. By offering a healthcare plan, you’re demonstrating that your employees’ health and wellbeing is as important as their productivity and skills.
While small businesses are not legally obliged to offer private medical insurance to their employees, doing so can be a great way to boost office morale, attract top talent, and reduce time spent off work due to sickness or illness. Having a generous perks package can also help to protect your business against current economic trends, where workers don’t feel connected to their jobs or decide to flee the workforce altogether. By showing your staff that their emotional, physical, and mental wellbeing is important, you’ll do your bit in helping reshape and reform the modern workplace. To ensure you receive the very best business-specific health insurance advice, your adviser will come from our sister company - Towergate Health & Protection.
“Health Insurance gives you access to the latest cancer treatment, as well as medication and procedures that don’t tend to be obtainable on the NHS. Private cancer care is intended to make your treatment as comfortable as possible.”
Can I get cover for my pre-existing condition?
Long NHS waiting lists and cancelled or delayed procedures are a common motivation for initial enquiries into Health Insurance. Depending on the condition, it is unlikely it will be covered on your plan. Although, if you have a pre-existing condition speak to one of our expert advisors as different underwriting options may suit your needs.
What is the difference between the NHS and Private Health Insurance?
As a nation we are fortunate to have a publicly funded health service, giving everyone access to treatment at little to no cost. Due to increasing pressure on the NHS, many people now face long waiting lists and delayed or cancelled treatment. Whilst receiving private treatment you will not face long waiting lists for treatment, in fact you are likely to be seen within a week or so. Health Insurance offers you access to a choice of hospitals and treatment times that suit you, with overnight stays often being in a private room. More on the NHS and Private Medical Insurance here.
Can I get cover for cancer treatment should I be diagnosed?
Health Insurance gives you access to the latest cancer treatment, as well as medication and procedures that don’t tend to be obtainable on the NHS. Private cancer care is intended to make your treatment as comfortable as possible by making chemotherapy at home an option, along with home nursing.
Can I choose where I am treated/my private hospitals?
There are three different options you can choose: Essential, Countrywide and Extended Hospital Lists. Essential lists tend to help lower your premium and covers you to stay in NHS private patient units along with your local private hospitals. The Countrywide list extends the coverage of the Essential list, giving you access to private hospitals and clinics. The Extended list gives you access to the widest access including London private hospitals.
What is included in Extensive Cancer Cover?
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How does corporate health insurance work?
Although common in some other countries, many organisations in Australia don’t realise the benefits of offering corporate health insurance policies to their employees. Included as part of a more comprehensive employee benefits package, employers can select corporate plans based on their needs, budget and business circumstances.
The benefits for both the employee and employer are substantial. Employees don’t have to spend their time researching different policy options, and employers can make their organisation a more attractive place to work for potential new hires.
Corporate health insurance basics
Corporate health policy is a type of insurance plan that organisations establish to meet their objectives and implement for the benefit of their employees. Employers who offer corporate health plans are responsible for searching the market and selecting a policy that fits their employees’ needs and expectations while at the same time staying within their budgetary constraints. Corporate health plans usually require a high participation rate, so employers should be certain that a substantial number of their employees will join if they can see value in the employer’s proposition.
A corporate health insurance plan is typically made available to all full-time, permanent employees; many employers don’t extend benefits to part-time employees. Contractors are considered a separate category, and employers are not required to extend benefits to them even if they work full-time. Some companies, however, find that offering equal benefits to all full-time employees can help create better cohesion and camaraderie amongst their entire workforce.
How a corporate health insurance plan differs from individual plans
The main difference between corporate plans and individual health insurance is that in the latter case, people buy health coverage for themselves (and usually their families) independently of their organisation.
These types of plans require more careful planning on the part of the individual. Without an organisation to do much of the grunt work, employees are the ones who have to research different policy options and make a decision based on their circumstances.
Perhaps the greatest benefit for employees, corporate insurance plans tend to be cheaper than individual plans. That’s because risk insurers offer incentives such as discounting and specialised products, helping to bring overall health care costs down.
Because of the cost savings, employers can offer plans with better coverage options than would otherwise be available. That means employees get better quality insurance when they go the corporate health route, helping them safeguard their long-term health.
Benefits of including health insurance as part of an employee package
The competition for qualified candidates in the current job market is fierce, and companies are constantly trying to find ways to stand out and hire the best talent. Corporate health insurance can give your organisation a major competitive advantage.
Offering health insurance coverage to your employees shows them that you care about the long-term health and wellbeing of them and their families. That makes them feel like a more valued and respected member of your organisation, which can help you both attract and retain key staff.
More than that, employees who report better job satisfaction tend to be more productive, efficient and better team members . Healthy employees also take fewer sick days, so your absenteeism rates decrease and the lifetime contribution of each employee increases.
Implementing corporate health insurance
- Outline your goals: From the very beginning, it’s important to set a series of objectives you hope to achieve with your corporate health insurance policy. Not only will this guide the selection of your plan, it will also help you persuade other, undecided decision makers that a corporate health plan will make a valuable contribution to your organisation.
- Know your people: Understanding the needs, usage, circumstances and even risk factors of your workforce is critical to selecting the right health plan. If your employees are generally healthy and less prone to illness or injury, you will then select a plan that focuses on health and wellbeing maintenance. The average age of your employees will also influence how risk-prone they are and the coverage required.
- Design a plan: Once you’ve made the decision to purchase corporate health insurance, work with your expert consultant to select a plan that contains the right initiatives and coverage options for your workforce’s needs and helps you achieve your long-term goals. It’s important to engage employees in this part of the process to ensure optimal implementation/participation.
- Track your success: It’s not enough to have a plan in place. You also need to make sure you have a system for measuring performance. Your performance measurement plan should identify key areas of your plan and attach metrics to each, helping you ensure you’re getting the outcomes you need.
Getting started with the right partner
Making the decision to purchase corporate health insurance is the first step. Teaming up with the right partner is the next. HICA is Australia’s leading independently-owned health insurance brokerage, and our team is committed to finding the right coverage option for your organisation.
We have almost four decades of experience in the corporate sector, so you can feel confident that our range of expertise will help you make the right decision about the coverage option you choose.
Contact us today for a free, no-obligation consultation and find out more about your options.
A guide to health insurance for small business owners
How many employees do you need for group health insurance?
How much does employer health insurance cost per employee?
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Learn Insurance Why You Shouldn’t Rely Only On Corporate Health Insurance?
Why You Shouldn’t Rely Only On Corporate Health Insurance?
Amit was feeling a bit relieved as the company he works with provides him a health insurance cover of Rs. 5 lakh. The policy also covers his spouse and dependent parents. For 3 years he has been working in the same organization, and never came a situation when he had to claim his corporate health insurance policy.
But in the fourth year, his father started developing some kidney problems. He was taken to the hospital where he underwent some medical tests. The tests revealed that he needs to undergo a kidney transplant and dialysis, as his left kidney had failed to function.
It came as a setback to him as his employer insurance policy had a coverage limit of Rs. 5 lakh and the total expense came out to be much more than that. So, he had to pay a huge amount from his pocket, which he could have saved if he had a separate health insurance cover with an adequate sum insured amount in addition to his corporate health plan.
Unfortunately, it is a common scenario these days. Most of the people do not buy health insurance as they rely too much on their employer’s health insurance coverage.
The question is can one afford to miss out on health insurance especially with the healthcare inflation rising at an alarming rate?
To arrive at an answer we will try to approach it from all the possible angles. It will help you in zeroing down on the best medical insurance for yourself and your family. After all, why should you settle for anything less? So, without wasting much time, let us dig into it a little deeper:
How Does Corporate Health Insurance Work?
In simple terms, it is a type of health insurance policy that the employer provides to its employees. It offers them the optimum health cover they require:
- It generally includes your spouse and children. However, some corporate health plans extend coverage to parents as well
- Usually, it provides a fixed sum insured amount that covers the cost of hospitalization in the event of an illness or accident. The hospitalization should be for more than 24 hours
- To increase your sum insured amount you would need to pay an additional premium
Breaking Down Further
Since corporate health insurance comes as a part of our employment contract, we rarely try to compare its pros and cons with other plans. Never putting in the due diligence to what we are missing out on.
More often than not, employer health plans come with a lot of clauses and caveats that are not there in an individual or a family floater health plan. So how would you ensure that you are well covered?
Let’s compare the pros and cons before we come down to a conclusion.
The Pros of a Corporate Health Plan
- Waiting Period
Waiver of the waiting period is one of the biggest advantages that it offers. Usually, a waiting period of 2 to 4 years applies to pre-existing illnesses, certain specified medical conditions, and maternity benefits. In this case, the employee gets coverage right from the inception of the policy.
- Pre-Existing Diseases
When it comes to corporate health plans, most of the claims are accepted despite any pre-existing illnesses (that you might have before getting insured). It is another advantage, as many insurers may deny claim or coverage or will have a waiting period clause in such cases. You can always check with your employer to be sure.
- No-Medical Checkup
The policy is issued without undergoing a pre-medical screening, even for senior citizens. In other health plans, a pre-medical test may be required depending on your age, and pre-existing medical conditions.
- Premium is Taken Care Off
The premium is paid by your employer. Only if you plan to increase the sum assured or top it up with another health plan, you would need to pay the difference.
The Cons of a Corporate Health Plan
To help you make an informed decision, we have outlined why a corporate health plan may not suffice, and why you may need to enhance it with an additional cover?
- Coverage Amount
Group medical plans that are taken by most of the employers have a limited sum assured amount. The maximum coverage could likely be up to Rs. 5,00,000 (if you are lucky).
And if we look at the cost of medical treatment in case of a serious illness, this amount would only make up for 25 to 35 percent of the total expenditure. So, why pay from your own pocket if you have an insurance cover?
- Co-Payment Clause
It implies that a fixed percentage of the medical bill needs to be paid by the policyholder. In this case, the insurance company will only pay a percentage of the sum insured amount. For example, the insurer will pay 80% of the total expenses, and you need to shell out the 20% from your bank account, and in some cases, it can be as high as 40%.
Most insurance policies do not have a co-pay clause, unless it is for a senior citizen, and also give you the liberty to opt-out of it (if there is any). You can always select an individual health plan without a co-pay or minimum co-pay.
- Room Rent Capping
It is also referred to as a sub-limit on hospital room rent. So, in a corporate health plan, the permissible room rent limit is pre-defined. And if you opt for a room with a higher tariff, then you will need to foot the difference.
- Policy Tenure
Your corporate health insurance will offer coverage until you are employed with the organization. The moment your employment ends, the policy will get terminated. You will be out of insurance cover, till you get employed somewhere else.
- Number of Insured Members
Not all the employer health insurance plans offer coverage to your dependent family members. It is one of the major shortcomings of this plan. The whole idea of buying a health cover is to secure your loved ones along with you in case of a hospitalization. And if you have your spouse, children, and elderly parents dependent on you, then corporate health plans might not be adequate.
Corporate health insurance has some advantages like zero waiting periods, reduced premium cost, no pre-medical screening, but the amount offered is not sufficient to meet the entire cost of hospitalization in India.
If you truly want to plan for your future, it will be prudent to treat your corporate insurance policy as a secondary option, along with a separate health insurance plan that offers extensive coverage as per your medical requirements.
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- Group Health Insurance Plan
How Group Health Insurance Works
History of group health insurance.
- Benefits of Group Health Insurance
Insurance Options for Uninsured Individuals
Example of group health insurance, the bottom line.
- Definitions A - M
Group Health Insurance: What It Is, How It Works, Benefits
Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.
Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South Carolina, where he launched his own financial advisory firm in 2018. Thomas' experience gives him expertise in a variety of areas including investments, retirement, insurance, and financial planning.
What Is a Group Health Insurance Plan?
Group Insurance health plans provide coverage to a group of members, usually comprised of company employees or members of an organization. Group health members usually receive insurance at a reduced cost because the insurer’s risk is spread across a group of policyholders. There are plans such as these in both the U.S. and Canada .
- Group members receive insurance at a reduced cost because the insurer’s risk is spread across a group of policyholders.
- Plans usually require at least 70% participation in the plan to be valid.
- Premiums are split between the organization and its members, and coverage may be extended to members' families and/or other dependents for an extra cost.
- Employers can enjoy favorable tax benefits for offering group health insurance to their employees.
Group health insurance plans are purchased by companies and organizations and then offered to their members or employees. Plans can only be purchased by groups, which means individuals cannot purchase coverage through these plans. Plans usually require at least 70% participation in the plan to be valid. Because of the many differences—insurers, plan types, costs, and terms and conditions—between plans, no two are ever the same.
Group plans cannot be purchased by individuals and typically require at least 70% participation by group members.
Once the organization chooses a plan, group members are given the option to accept or decline coverage. In certain areas, plans may come in tiers, where insured parties have the option of taking basic coverage or advanced insurance with add-ons. The premiums are split between the organization and its members based on the plan. Health insurance coverage may also be extended to the immediate family and/or other dependents of group members for an extra cost.
The cost of group health insurance is usually much lower than individual plans because the risk is spread across a higher number of people. Simply put, this type of insurance is cheaper and more affordable than individual plans available on the market because more people buy into the plan.
The earliest known example of group coverage for health services dates to 1798, when Congress established the U.S. Marine Hospital for Navy seamen. Participation was compulsory, with deductions coming from salaries. Other examples include the mining, lumber, and railroad industries in the late 1800s, which had a vested interest in ensuring the health of its workers.
Montgomery Ward is credited with establishing the nation’s first group health insurance policy in 1910. The policy did not reimburse workers for medical expenses, but provided cash payments to workers equal to half their wages in the event of injury or illness.
The progressive political movement of the early 1900s led to several proposals to establish compulsory national health insurance. However, these proposals failed to counter opposition from doctors, who objected to uniform fee structures; labor groups, which felt their power would be weakened; and insurance companies, which feared encroachment on their business.
Employer-sponsored group health insurance grew rapidly in the 1940s as a way for employers to get around wage controls set during World War II. In 1943, the War Labor Board introduced wage caps but did not include insurance premiums as part of the cap. As such, employers were free to offer health insurance to attract and retain workers, resulting in a tripling of health insurance coverage by the end of the war.
But this failed to address the needs of retirees and other non-working adults. Federal efforts to provide coverage to those groups led to the Social Security Amendments of 1965, which laid the foundation for Medicare and Medicaid .
Benefits of a Group Health Insurance Plan
The primary advantage of a group plan is that it spreads risk across a pool of insured individuals. This benefits the group members by keeping premiums low, and insurers can better manage risk when they have a clearer idea of who they are covering. Insurers can exert even greater control over costs through health maintenance organizations (HMOs), in which providers contract with insurers to provide care to members.
The HMO model tends to keep costs low, at the cost of restrictions on the flexibility of care afforded to individuals. Preferred provider organizations (PPOs) offer the patient a greater choice of doctors and easier access to specialists but tend to charge higher premiums than HMOs.
The percent of the U.S. population covered by employer-provided group health insurance in 2021.
The vast majority of group health insurance plans are employer-sponsored benefit plans. It is possible, however, to purchase group coverage through an association or other organizations. Examples of such plans include those offered by the American Association of Retired Persons (AARP), the Freelancers Union, and wholesale membership clubs.
Not everyone is covered by a group health insurance plan. For many decades, these uninsured people were forced to bear the cost of healthcare on their own. But that has changed.
Government-sponsored health plans are an option for those left out of employer-sponsored group health insurance. The Affordable Care Act (ACA) adopted in 2010 created a marketplace for health insurance that provides coverage to 16.3 million people as of the 2022-2023 open enrollment season.
After the passage of the ACA, taxpayers were required to show they had health insurance coverage or qualified for an exemption, or else they were required to pay a penalty described as a “shared responsibility payment.” This mandated payment was eliminated with the passage of the Tax Cuts and Jobs Act beginning in the 2019 tax year.
United Healthcare, a division of UnitedHealth Group (UHC), is one of the nation's largest health insurers. It offers a buffet of group health insurance options for all types of businesses. Include are medical plans and specialty, supplemental plans, such as dental, vision, and pharmacy.
United Healthcare offers plans under the federally-sponsored Small Business Health Options (SHOP) program, a provision of the Affordable Care Act. In most states, employers must have 50 or fewer full-time employees, although some states allow for as many as 100 employees. Businesses that pay at least 50% of the insurance premium qualify for a 50% tax credit.
Midsize businesses, with between 51 and 2,999 employees, have various options available, including bundles. Large businesses, with 3,000 or more employees, qualify as national accounts, which have more services and healthcare features, including the ability to customize plan offerings.
What Is a Group Health Plan?
Group health plans are employer- or group-sponsored plans that provide healthcare to members and their families. The most common type of group health plan is group health insurance, which is health insurance extended to members, such as employees of a company or members of an organization.
What Is a Group Health Cooperative?
A group health cooperative, also known as mutual insurance, is a health insurance plan owned by the insured members. Insurance is offered at a reduced cost, and what they collect from members is based on claims paid. The cost of care is spread out across the insured population.
How Many Employees Do You Need to Qualify for Group Health Insurance?
Many group health insurers offer plans to companies with one or more employees. The type of plans available, however, may vary according to the size of the business . For example, United Healthcare provides various plans for small businesses with 1-50 employees, midsize businesses with 51-2,999, and large employers with 3,000 or more employees.
What Are Group Health Insurance Benefits?
Group health insurance plans offer medical coverage to members of an organization or employees of a company. They may also provide supplemental health plans—such as dental, vision, and pharmacy—separately or as a bundle. Risk is spread across the insured population, which allows the insurer to charge low premiums. And members enjoy low-cost insurance, which protects them from unexpected costs arising from medical events.
How Much Does Group Health Insurance Cost?
The average group health insurance policy costs roughly $7,400 annually for an individual, with the employee paying 17% of the premium. For family coverage, the average cost was about $21,000 per year, with the employee paying 27% of the premium.
Group health insurance plans are one of the most affordable types of health insurance plans available. Because risk is spread among insured persons, premiums are considerably lower than traditional individual health insurance plans. This is possible because the insurer assumes less risk as more people participate in the plan. For employees who ordinarily would not be able to afford individual health insurance, it is an attractive benefit.
U.S. Bureau of Labor Statistics, Monthly Labor Review. “ The Development and Growth of Employer-Provided Health Insurance ,” Pages 3-4.
Marilyn J. Field and Harold T. Shapiro. “ Employment and Health Benefits: A Connection at Risk ,” Chapter 2.
National Archives. “ Medicare and Medicaid Act (1965) .”
Kaiser Family Foundation. " Health Insurance Coverage for the Total Population ."
U.S. Department of Health and Human Services. “ Biden-Harris Administration Announces Record-Breaking 16.3 Million People Signed Up for Health Care Coverage in ACA Marketplaces During 2022-2023 Open Enrollment Season .”
Internal Revenue Service. “ Individual Shared Responsibility Provision .”
United HealthCare Services. “ Small Business Health Options Program (SHOP) .”
Kaiser Family Foundation. “ 2020 Employer Health Benefits Survey .”
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