What Is Covered By Group Health Insurance?
Group health insurance plans offer comprehensive protection - which appeals to employers and workers. The key features include:
- a) Hospitalisation and surgeries: Group health insurance covers stay in hospital, surgeries and treatment options.
- b) Previous conditions: Numerous group health insurance plans insulate pre-existing conditions (which are typically excluded from individual policies).
- c) Maternity benefits: Some plans provide pre-and post-natal coverage that eases financial burdens on expecting families.
- d) Post-hospitalisation costs: Others extend post-hospitalisation expenses for a limited period.
- e) Outpatient service: Several policies also cover outpatient treatments so employees are not hospitalised.
Why Should Employees and Employers Care About Group Health Insurance?
Group health insurance is more than an extra advantage; it's a benefit. It is an invaluable resource to workers and employers alike. How each side can benefit:
For the Employers:
a) Cost-Effective Coverage: Since risk is distributed over a bigger group, premiums for group health insurance are typically lower than individual plans. This can make it financially appealing for employers and small and medium businesses.
b) Tax Benefits: Premium contributions to group health insurance are deductible under Section 80D of the Income Tax Act. This will reduce businesses' overall tax liability and offer long-term financial benefits.
c) Attractive Employee Benefits: Offering group health insurance may help employers find and keep top talent. It demonstrates that workers are valued by the business, raising employee satisfaction and loyalty.
For Employees:
a) Comprehensive Coverage: Employees are covered for medical expenses like hospitalisation, surgery and medicines. Some plans even cover the employee's family members without additional cost.
b) No Waiting Period: Best of all, group health insurance does not have a waiting period for many conditions—employees obtain coverage right away upon signing up.
c) Preventive Care: Many group health insurance plans cover preventive care services, including medical checkups and screenings, to keep employees healthy and detect issues early on.
d) Maternity Benefits: For employees planning to expand their families, group health insurance might provide maternity benefits that cover delivery expenses and newborn health starting during the pregnancy.
Who Qualifies for Group Health Insurance?
1) Small Business:
Smaller businesses with 20 to 50 workers can obtain group health insurance. Though these companies might have limited budgets, offering group health insurance is a low-cost method of ensuring employee well-being, morale, turnover, and productivity.
2) Medium-Sized Businesses:
Those with 250 or fewer employees generally have group health insurance. With increased resources than smaller companies, these businesses could leverage group health insurance inside their wider employee wellness programs to keep a healthy workforce engaged.
3) Big Corporations:
Big corporations with over 250 workers also receive group health insurance. Several large companies provide health insurance as part of their employee benefits to encourage health and retain top talent. Their financial strength can offer extensive coverage to inspire employee retention and satisfaction.
4) Other Groups:
Beyond companies, group health insurance might be provided to associations, cooperative societies and trade unions. Such groups might also use affordable medical care by pooling resources and sharing risk among members.
Conclusion
Group health insurance is a choice that offers complete healthcare to many employees—whether they work for a small business or a huge corporation or are members of an organisation. It has low premiums, wide coverage, and huge tax breaks for companies, while workers can access vital medical services without waiting periods or steep out-of-pocket expenses.
Choosing group health insurance can help businesses provide for their employees. Whether you are a startup or maybe a huge corporation, group health insurance is critical for long-term success and employee satisfaction.