What are the Benefits of a Group Medical Plan?

With the cost of medical treatment skyrocketing, health insurance has become essential to ease mental and financial strain when faced with a medical crisis. There are a variety of wellness plans designed for specific needs like individual health insurance, family floaters, critical illness schemes and personal accident insurance, etc. Today, let’s delve into group medical schemes and its benefits.

Group Health Insurance plan is a key component of the employee’s voluntary benefits package. The purpose is to provide members of an organization, company or community adequate health coverage against unexpected medical needs. The administrator of the group pays the premium on behalf of the multiple policyholders. A member of the group can file a claim for a medical issue covered under the plan directly with the provider or request compensation through the employer.

1. Boost Employee Retention –

Employers need to ensure that their employees are safe both mentally and physically. Along with secured jobs, employers also need to protect the health of their employees. By safeguarding them with a Group Health Insurance gives them the assurance their they are valued and cared for

2. Financially secure them during the COVID-19 Pandemic –

With the ongoing COVID-19 Pandemic crisis, job and financial security have become of utmost importance. In such a situation, employers must ensure that the existing Group Health Insurance covers Coronavirus treatment expenses. This will keep them medically secured.

3. Strengthen Employee Motivation –

It's proven that when employees are valued for their health, they will always feel motivated to work. When employees are financially protected, they feel happy and motivated.

4. Protect them from Severe Health Conditions –

Most deaths in India occur due to life-threatening diseases. There is a consistent rise in severe health conditions like cancer, heart stroke, kidney failure, high blood pressure, etc. Thus, having a Group Health Insurance will enable employees to access quality healthcare service and ensure a smooth recovery from such illnesses.

5. Enhance their Mental Wellbeing –

Due to work pressure and late working hours, many employees go through stress-related issues. Group health insurance policy can also help to enhance employees' mental wellbeing by providing them the right medicare, thus helping keep their savings intact. Employees do not have to spend from their own pockets.

• No Medical Check-Up: An employee doesn't have to go through any health check or submit any medical reports before getting the cover. This is a big plus for individuals who may have certain pre-existing medical conditions. Under the group insurance canopy, everyone is provided coverage regardless of a health problem.
• No Premium: Unlike health insurance that you buy yourself or your loved ones, you have to pay a premium in exchange for financial security. However, Group Health Insurance is a company-sponsored product where there is no premium component as your company pays for the same. The premium paid is relatively less against individual health insurance.
• Default health benefit: Typically, a Group Health Insurance policy is part of the employee's annual benefit program. Whether you want to cover, you will get the insurance cover by default when you join a new company without the need to pay the premium.
• Simple Claim Process: The claim process of Group Health Insurance is simple and quick. Once you raise a request for a claim, your company will directly inform the third-party administrator or the insurance company. This way, it reduces your efforts with regards to the claim processing.
• Cost Effective: Since the employer-sponsored health coverage witness bulk participation, the insurance provider offers attractive discounts. As a result, the cost of the policy and the premium amount works out to approximately 30% cheaper on the group plan than the single individual policy. This is advantageous for both employer and employee.
• Lower Waiting-Period: Most individual health plans have a mandatory waiting period before an insurer can become eligible for a medical claim. However, group insurance is a little lax on this front. A beneficiary can file a claim within a few weeks of getting enrolled.
• No Medical Check-Up: An employee doesn’t have to go through any health check or submit any medical reports before getting the cover. This is a big plus for individuals who may have certain pre-existing medical conditions. Under the group insurance canopy, everyone is provided coverage regardless of a health problem.
• Dependent Coverage: Besides providing comprehensive healthcare cover for employees, the group medical plan generally gets extended to the spouse, parents, grandparents and even children. In fact, some plans also offer complete maternity benefits.
• Increases Productivity: A group health programmed enhances the work environment, nurtures creativity and improves the morale of the work-force. This reduces absenteeism, increases employee focus commitment and satisfaction which in turn fuels growth and maximizes productivity.
• Tax Benefits: By offering health insurance to workers, the employer can avail tax benefits. The premium amount sponsored the company is regarded as a business expense which reduces its taxable income. The deductions lower a business’ annual tax burden considerable which consequently enhances the bottom line.

As you can see group health insurance is a win-win situation for employees as well as employers. It, however, must be noted that the health cover is valid only till an individual is part of the organization. Hence people prone to switching jobs should pair an individual policy with a group cover to enjoy a healthy lifestyle.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.