Corporate health insurance – what is it?
Corporate health insurance is a type of group insurance that provides coverage for employees, their families and dependents. It’s designed to protect your business from rising health and medical costs by providing coverage for critical illness, accidents and disability to you and your workforce.
Several different types of corporate plans are available today; each has its own set of benefits and features that make them unique. But all these plans share one thing in common: they protect against catastrophic events (medical emergencies that requisites immediate hospitalisation) at little or no cost to you! The most common types of corporate medical plans for employer-employees in India are.
- Group medical health insurance plan, also known as GHI/GMI/GMC
- Group term life insurance plan, also known as GTL/GTLI
- Group personal accident insurance plan, also known as GPA
The following sections will explain corporate health insurance, how it works, and why it’s essential for your company’s long-term financial security.
Corporate health insurance – how does it work?
Corporate health insurance is a form of group insurance that covers the risk of incurring medical expenses during the course of active employment. It is a type of group mediclaim that provides financial protection against the risk of medical treatment expenses in the event of an unforeseen hospital emergency, specifically to the employee and their respective families. Many plans allow workers to cover their parents-in-law with super-top, critical illness coverage, outpatient department benefits, and much more.
In short, if you or your family person gets hospitalised, the employer-sponsored corporate medical insurance coverage can be utilised to pay the cost of hospital bills.
As a salaried employee, you must check with your human resources department to check the complete details of your corporate medical plan.
The importance of corporate medical insurance (GMC + GPA + GTL) cannot be overstated for an employer as well, as it protects your business from high costs and potential lawsuits or other legal issues if a worker gets sick or injured on their own time off work. In India, which has a large working population, employer-employee insurance benefits salaried individuals with limited access to health care coverage through their employer’s plan, especially for those who cannot afford an individual healthcare policy.
Modern healthcare is expensive, so it makes sense why companies and young co-founders would want to shield themselves from those costs by purchasing a group plan to protect their workforce’s interests and well-being. A happy and secure workforce is ideal for any organisation.
Advantages of corporate health insurance for employers and employees
- You will be covered for medical expenses from day 1
- You will be covered for critical illnesses (this also depends on the scope of cover of the group cover)
- You will be covered for in-patient hospitalisation
- You will be covered for emergency treatment due to an accident
- You will be covered for outpatient treatment and surgery (OPD benefits can be availed at the cost of an additional premium payment)
- You can go ahead with the flexible premium payment options
- You get to save income tax
- You get to pick and select the right kind of employee benefits and sum insured on a single platform with the best quote possible from multiple insurers
- No agents, no commission, no paperwork. Your decision is free from human bias and error
- No need to visit the bank; you get to customise your digital health insurance plan online
- Get the option to include additional benefits such as critical illness and maternity cover for employees and their dependents.
What is covered under your corporate health insurance policy?
The coverage you receive depends on the type of group policy selected by your company. Some policies include:
- Hospitalisation – This coverage can pay for hospital stays for individuals and their families up to a set amount, equal to the sum insured per employee. It also pays for medical expenses related to childbirth and certain pre-existing conditions post the waiting period (for example, if you have asthma or diabetes, if your policy comes with maternity and childbirth coverage).
- Physician visits – Your plan may cover basic medical care for preventative purposes (such as yearly checkups) and pre/post hospitalisation expenses, including prescription drugs that your doctor or specialist recommends. If you’re injured while at work or on vacation, this benefit will help with treatment costs related to the injury itself and rehabilitation afterwards.
What is not covered under your corporate health insurance plan?
- Out-of-network care – This is the type of care you may have to pay for yourself if your plan doesn’t cover it.
- Critical care – Your health insurance company may not cover urgent visits or surgeries, like those related to childbirth or cancer treatment or heart stroke. The complete list of non-covered critical conditions is mentioned in the policy document.
- Pre-existing conditions and other medical conditions that are not covered under your plan’s benefits package (such as diabetes). If a person with a pre-existing condition enrols in an employer’s group health plan, they may be denied coverage for these additional services unless they’ve been approved by the insurer beforehand; this is known as “pre-approval” surgery procedures that are sometimes requested by employees who want more flexibility over their health choices without having them put off until later when necessary medical care becomes unavailable due lack funds needed funds. The other option is to complete the waiting period.
It’s no secret that healthcare costs are rising. According to the Bureau of Labor Statistics, the average cost for hospital stays has increased by about 50% since 2010. Keeping this in mind, it is a good decision to secure yourself and your family’s future by choosing a corporate health insurance plan. Not only are you covered for health expenses but also critical illnesses.
Not only do these plans provide peace of mind by covering medical bills when they arise, but they can also help you plan for the future. It’s never too early or late to start saving money on premiums so that when something does happen—whether it be an emergency visit to the doctor or surgery—you won’t have any issues paying out-of-pocket costs due to lack of funds available at the time (and if there isn’t enough saved up). As we all know, corporate health insurance comes at no cost to an employee’s paycheck.
Conclusion
Corporate health insurance is the best way to protect employees and their families from unnecessary costs. With corporate health insurance coverage, you can rest easy knowing that you have taken care of all those medical emergencies that come up unexpectedly. Not only are you covered for health expenses, but also for critical illnesses and accidental emergencies.
Want to know more about Plum Insurance?
Deep dive into group insurance for teams.
Check out group term insurance.
Explore group personal accident insurance.
DM us on Twitter.
