What is Group Health Insurance Plans ?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.
Benefits of Group Health Insurance Plans:
- 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.
Learn more about different Health Insurance Plans here.
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.
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