World Day for Health and Safety at Work has been celebrated on Apr. 28 every year since it was established in 2003 by the International Labour Organisation. It aims to promote the importance of creating a safe and healthy culture among businesses.
For companies, this does not simply mean reducing fatalities and injuries of employees at work but also involves nurturing an environment where employees’ physical and mental health and well-being are valued and promoted, especially those who have pre-existing medical conditions.
One significant way companies worldwide can demonstrate the value they place on the health of their employees is through the provision of medical or health insurance to maintain their employees’ health.
We believe that the health of a company’s employees is an essential investment for all businesses, no matter their industry. The good thing is that offering this corporate benefit is a cost-effective process and has a positive impact on the firm’s bottom line.
What is a Corporate Health Insurance Plan?
In basic terms, a corporate health insurance plan or group health insurance plan is an employer setting up to cover their employees under a group health insurance policy no matter their medical history.
This group health insurance policy means that regardless of pre-existing conditions, all workers part of the corporate health insurance plan receive equal coverage and pay affordable premiums based on the number of covered employees.
Typically, corporate health insurance plans are outlined in an employer’s group benefits policy document. Employees usually receive a group health insurance certificate after they have paid their premiums for some time.
A group health insurance plan can be an integral part of employee benefits packages in private and public organisations.
Corporate health insurance cover may extend to the employees’ family members in particular cases. The premium amount of corporate health insurance/ group health insurance may be significantly less compared to individual health insurance plans and may involve certain tax benefits, making it extremely advantageous for the employer and employees insured alike.
Here are 5 Reasons Why Offering Corporate Health Insurance Plans to Your Employees Will Benefit Your Business
1. Boost employee productivity
Studies showed that employees in good physical, emotional, and mental health were more prone to deliver optimal performance in their place of work than employees who were struggling with issues.
A Belgian study from 2018, for example, clearly demonstrated that employees who were absent due to illnesses contributed to the lagging productivity of a company.
A healthy workforce is a productive workforce, and access to leading healthcare or an effective health plan is the best policy a company can have to keep its employees healthy and at their most productive.
Group health insurance plans help companies provide critical health insurance plans to their employees, which is much more appreciated by those with pre-existing health conditions or struggling to cover rising medical costs.
2. Increase employee satisfaction
People appreciate having a regular health insurance policy as one of their key benefits. Research carried out by Glassdoor rates it as the most appreciated among employee benefits, beating both holiday entitlement and a pension.
Corporate healthcare plans allow employees to meet their health goals and provide peace of mind and security. In addition, corporate health insurance is particularly popular with millennials, who tend to be more health-conscious than other generations.
A good health plan is also a sign that the company is invested in its employees’ well-being, and this can create a more positive working environment with increased trust and loyalty. Group health insurance can thus help boost your business by improving your employees’ satisfaction rates.
3. Reduce employee turnover
Hiring and training employees are expensive, and high staff turnover negatively impacts profit and potentially results in low company morale and reduced quality of output.
Employee medical insurance can help build employee engagement and encourage people to stay or give them critical illness cover.
This allows employees to become more satisfied with their jobs or work longer without having to worry about their health.
In addition, studies have shown that employees are less likely to leave a company they know has invested in their health, especially when it comes to long-term care, such as a company’s group health insurance plan.
4. Attract the best employees for your company
A group health insurance plan that appeals to the needs and aspirations of highly qualified professionals will ensure your business attracts the best employees.
When workers are faced with two equal-paying job opportunities, a candidate is likely to choose the one which offers a corporate health insurance policy over one that doesn’t have one as part of its employee benefits.
A company that can attract the best employees for its workforce will be better placed to compete in the market.
In addition, company employee benefits that include corporate health insurance policies which encourage employees to look after their well-being tend to help them maintain a healthier lifestyle.
This means that employees are likely to spend more time at work because they will not be cautious of rising medical costs for any pre-existing disease.
5. May offer tax benefits or advantages
Companies offering group health insurance or employee health insurance to their workers may enable their firm to enjoy certain tax advantages, depending on which country they are based, reducing overall cost.
However, tax breaks vary from one country to another, so consult an insurance coverage professional wherever you are working to see if any apply to your organisation.
It’s clear that offering top-quality group insurance or medical care as employee benefits is good for business.
However, finding the right medical coverage can be daunting with a vast range of different available options. That’s why having help from experienced advisors is as important as the group health insurance cover and the insurance company themselves to make the process as hassle-free as possible.
Infinity has the benefit of having exclusive deals with the leading specialist international medical insurance providers.
Our experienced advisors have a wealth of knowledge in developing cost-effective, made-to-measure group insurance plans to suit any company size. We can help your company get the right cover at the right costs to protect your employees and bring all the benefits we listed above.
Why not contact us to discuss your corporate healthcare requirements?
FAQs About Corporate Health Insurance Plans
How does corporate health insurance work?
A corporate health insurance plan or group health insurance plan insures employees of a company and their immediate family members, offering wellness benefits of up to a fixed amount of the adequate sum insured. A corporate health plan is often a floater plan, with the premiums being payable by the employer.
Do employees have to pay an additional premium for a corporate health insurance policy?
Generally, employees are not responsible for paying an additional premium for the standard group health insurance plan of the company, as the employer pays for the corporate health insurance policy. Only if an employee opts for additional benefits do they have to pay an extra premium amount.
What is the difference between corporate health insurance plans and regular health insurance plans?
Corporate health insurance differs from regular health insurance plans in that the healthcare benefits are paid for by the employer and provided to their employees, whereas the individuals themselves pay for individual health insurance plans. Furthermore, corporate health insurance does not involve the waiting period clause of up to 24 months as individual health insurance plans do, and all the employees will receive coverage on specified medical conditions, pre-existing diseases, and maternity benefits from the day of inception of the insurance policy. Prior medical examinations are not mandatory with a group health plan. Corporate health insurance also doesn’t require employees to undergo pre-medical check-ups and pre-medical tests, even in the case of pre-existing diseases.
Are there any exclusions of corporate health insurance?
A corporate health insurance policy will cease to be applicable to an employee if they are terminated from their position. Moreover, particular medical reasons that result in unemployment may also exclude the relevant employee from the corporate health plan. This may include alcohol and drug addiction, self-inflicted injuries, and pre-existing illnesses the employee failed to disclose. Employees further only receive health cover for medical treatment for illnesses that are explicitly defined under the corporate health insurance policy. Any claim for medical treatments by the insured person will be denied if it is not specified under the health insurance policy.
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