These days, a number of companies offer employee health insurance plans as a benefit. This is generally in the form of a group health insurance policy. Before getting into the various benefits of a group health insurance, you first need to understand the basics of this type of health coverage.

What is a group health insurance plan?

Group health insurance plansareinsurance plans that provide healthcare coverage to a selected group of people. These plans are considered as one of the major benefits that are offered by many employers. Group health insurance plans are generally uniform in nature, and offer the same benefits to all the employees or members that are covered under the policy.Usually, group health insurance plans cost less in terms of premiums as compared to individual plans that offer similar benefits. This is because of the reason that the inherent risk is spread over a large group, instead of just one person. In case the premium cost is borne by the insurer, they are completely deductible; and any benefit that is received by the group members is tax-free.

Group vs. Individual Health Insurance

While group health insurance has a lot of benefits to offer, it is still quite different to an individual health insurance. Here, an individual health insurance refers to any health plan that a person buys themselves. Both insurance policies have their own advantages, but it is always a good idea if you have both in place. With group insurance, you don’t really get to choose the coverage, as it is already selected by your employer. On the other hand, even a small individual policy with similar coverage as your group insurance may cost more than your group health insurance. The group health insurance premiums are paid by the company, so you can definitely avail this benefit, but also keep yourself covered with an extra individual policy, just in case.

Benefits for employers

Offering group health policies has a number of benefits for the employer. Some of these are:

  • Employee Motivation: In today’s time, when the medical costs are soaring high and lifestyle diseases are at a rise, corporate health insurance policies are seen as one of the most preferred benefitsthat attract people to a company. By insuring them against higher hospitalization costs, employers can help their employees stay motivated.
  • Retention of Employees: More and more companies today are employee-centric and with that, group health insurance has slowly become the benefits that helps attract and retain talented employees. Many group policies also offer medical coverage for the family members of the employees,which in turn makes the employees feel more attached to the company.
  • Low Costs: Group health insurance policies cost nothing or very low for the employees, as it is, when you buy in bulk, you can always avail various discounts.
  • Easy Payment of Premiums: Depending on the policy of the company, employers can choose to pay premiums as is convenient for them; monthly, quarterly, or yearly.
  • Tax Benefits: Employers can avail tax benefits on group health insurance, and the policies can also help reduce their tax liability.

Benefits for employees

The employees too can avail numerous benefits with corporate health insurance policies, some of which are:

  • Default Cost of Insurance: All the members of the group are covered automatically by the insurance, just by the virtue of being in the group. This ensures at least basic insurance coverage for people, and is especially good for those without any insurance.
  • Institutional Support When Putting in a Claim: Irrespective of the individual state of health, group health insurance is offered to all the members of the group. This ends up being of great value to people who are looking for health insurance but are unable to get an affordable option because of their current state of health.
  • No Medical Check-Ups Required: When you are covered under a group health insurance plan, you do not need to undergo medical check-ups. You also don’t have to submit any medical reports to get enrolled under the company’s group health insurance.
  • No Waiting for Maternity Cover: Maternity coverage in most insurance can be availed after a waiting period, which may vary with different insurers. However, when you become part of a group health insurance, you can avail maternity benefits immediately.
  • No Waiting Period for Pre-Existing Diseases: When it comes to group health covers, even forpre-existing illnessesthere are nowaiting periodsinvolved. Therefore, even illnesses like heart issues, diabetes, etc., are covered from the first day of coverage.
  • Good for the Well-Being of the Employees: Group health insurance policies can play a major role in helping secure the health of a company’s employees as well as their families.

The more you know, the better you’ll utilize the group health insurance provided by your employer.