What is the first image that comes to your mind when thinking of a start-up? Possibly a boot-strapped venture with a disruptive idea that can change the industry, or maybe one with high-spirited employees working to make it to the big leagues, or perhaps even an investor-funded company where employees and the organisation have more leeway to achieve their goals.
Today, start-ups play a significant role in driving the Indian economy forward and giving employment opportunities to thousands. With their innovative ideas, startups are reshaping industries and challenging traditional norms. However, as startups grow in a competitive job market, they must attract and retain top talent to fuel their expansion.
One method to attract employees, especially today when there are growing health risks and rising treatment costs, is offering group insurance plans.
What is group health insurance?
A group medical insurance policy is a simple and cost-effective way for organisations and groups to provide comprehensive healthcare solutions to their employees. Under group insurance plans, employers can offer the same plan to all members regardless of age, gender, or socio-economic status.
As an extension of health insurance, group policies offer a wide range of coverages that can be opted for by the employer and provided to their employees. This allows all members of an organisation to be covered from planned or unexpected medical expenses, reducing out-of-pocket expenses.
How to choose the best group health insurance plans?
A business is typically a for-profit organisation with a set goal in mind. However, no business can succeed without its employees, whether it is a one-person solo business or a multi-layered corporation. This is why companies must consult with their employees, assess their needs, and make a purchase plan accordingly.
The following are some of the factors that need to be considered whenever choosing a group insurance for employees:
- Consult with your employees– Speaking with your employees and understanding their needs can help them understand the common and specific requirements that must be considered.
- Opt for maternity and dependent coverage– Many employees might have their own families and dependents. Whether it is young children, ageing parents, or spouses, offering coverage to them can be beneficial.
- Consider offering pre-existing disease coverage– Individuals worldwide have been facing growing health risks due to the rise in sedentary lifestyles and environmental, genetic, and socio-economic factors. This is why companies need to understand these growing risks and plan accordingly.
- Assess the waiting period and deductibles– Several insurers have set waiting periods and deductibles before being able to claim a settlement. Ensuring that your policy has lower waiting periods and deductibles is essential.
- Determine the sum insured per individual– Although group plans are for a set of individuals, each employee is eligible for a particular sum of coverage. It is crucial to consider the current cost of treatment and plan accordingly.
How to get affordable group health insurance?
When an organisation offers small group health insurance to its employees, the company’s finances must be considered. Although providing health insurance to employees is mandated by the government, there are several ways by which employers can purchase affordable health insurance.
- Focus on hiring younger and healthier employees– One of the primary criteria in insurance premiums is employees’ age and medical history. A younger and healthier workforce might benefit and lead to more cost-effective policies.
- Emphasise preventative care- Preventative care can help preempt certain risks and take measures to avoid them from aggravating. This, in turn, can reduce the risk and lead to lower premiums.
- Compare insurance providers- Although typically the prices offered for policies are standard, there are ways to get higher value or bang for your buck. Comparing between insurers and focusing on value can help get a better policy for a better price.
- Choose between necessary and additional benefits- Insurance policies are often a mixed bag to fit most people’s needs and thus might have a higher cost. With group policies, it is possible to customise the policy and get a more affordable plan.
- Tax benefits- Organisations can enjoy tax benefits on the insurance premium as they are considered business expenses and tax deductible.
Conclusion
Employees are the backbone of any business, and today, with the rising cost of treatment and growing health risks, it has become necessary for companies to ensure the well-being of their employees. So whether it is to create a productive work environment, reduce the overall out-of-pocket expenses for employees due to government mandate, or attract and retain talent, organisations in 2024 must choose the right policy for their employee’s needs and plan accordingly.
