What is a Group Health Insurance Policy?
A group health insurance policy is a health plan that provides coverage to a group of people, such as employees of a company or members of an organisation. Instead of purchasing individual health insurance, the group members are covered under a single policy. Since the risk is spread across a larger group, the covered members benefit from better coverage at more affordable premiums.
The features and benefits of a group medical insurance policy are:
- Easy enrolment: Enrolling in a group health insurance plan is typically quick and hassle-free. The process is often managed by the employer’s HR department.
- Comprehensive coverage: The policy offers comprehensive coverage for group members, including hospital bills, pre-and-post-hospitalisation expenses, home healthcare, daycare procedures and more.
- Affordable premiums: In most organisations, employers contribute a significant portion of the policy premium, making it cost-effective for employees. In some cases, companies cover the entire premium.
- Pre-existing conditions: Many group medical insurance policies offer coverage for pre-existing conditions, which is especially beneficial for employees managing chronic health issues.
- Cashless treatment: Group medical insurance often provides access to cashless treatment at network hospitals, saving employees from paying upfront and later claiming reimbursement.
How Group Health Insurance Helps Attract and Retain Top Talent?
Group health insurance is an important benefit that helps organisations create a stable and engaged workforce. It not only supports employees’ well-being but also plays a crucial role in attracting and retaining top talent. Here’s how:
- Employee well-being and financial security: Providing health insurance shows that the organisation genuinely cares about its employees’ health and financial security. It provides comprehensive coverage for medical expenses, helping to reduce out-of-pocket expenses during emergencies and giving employees peace of mind. When employees feel valued and supported in this way, they are likely to join and stay with the organisation.
- Reduced employee turnover: Providing group health insurance helps reduce turnover as this benefit ensures financial and emotional support during medical emergencies. Reduced employee turnover helps employers save on the costs of hiring new staff.
- Competitive advantage: In today’s competitive job market, offering comprehensive health benefits gives employers an edge in attracting top candidates. Skilled professionals are more likely to choose and remain with companies that offer important benefits like a health insurance policy. Therefore, group medical insurance can make your organisation attractive to prospective employees and foster long-term commitment among your current workforce.
- Healthier, more productive workforce: With easy access to healthcare, employees are more likely to stay healthy and take fewer sick leaves. A healthier workforce is not only more engaged but also more focused and productive. When employees feel good mentally and physically, they can perform at their best, leading to high-quality work.
- Tax benefits: Group medical insurance offers tax advantages to both employers and employees, making it a cost-effective benefit. Premiums paid by employers are considered a business expense and are eligible for tax deduction. Similarly, since the employer provides group health insurance, employees don’t have to pay tax on policy premiums. Therefore, tax benefits also add significant value to the overall compensation package and help bring in talented employees.
- Positive employer branding: Offering important benefits like health insurance enhances the company’s image and reputation, making it an ideal and more attractive place to work. This can help hire and retain talented employees and benefit the organisation.
- Meeting legal and social responsibilities: Providing group health insurance is not just the best practice; it is often a legal requirement and an important responsibility for organisations. In some regions, companies must provide certain healthcare benefits to their employees. By meeting these requirements, businesses ensure they stay compliant with the law and build trust with employees at the same time.
Conclusion
In today’s competitive market, where job seekers are increasingly looking for employers who offer meaningful benefits, providing group health insurance can help set an organisation apart. The policy offers a range of benefits, helping employees feel secure and supported, especially during expensive hospitalisations. Therefore, by providing group health insurance, employers show that they care about their employees’ well-being, and this goes a long way in building their trust and loyalty. It also creates a positive work environment, which helps attract and retain skilled professionals.