Group health insurance provides significant advantages for your business, but finding the right coverage for your employees at a competitive price can be challenging. We’re here to guide you through the process!
Why provide group health insurance for your employees
Whatever your business, in Asia’s competitive business landscape, your employees are your most valuable asset. Providing quality benefits not only attracts the best talent to your business but is key in retaining them. Perhaps unsurprisingly, given the premium we place on health and the skyrocketing cost of quality medical care, numerous studies show that health insurance is the most appreciated employee perk.
Fostering a healthier, more productive workforce is also a no brainer for companies. It reduces absenteeism, enhances employee satisfaction and demonstrates your commitment to their wellbeing.
In addition, group health insurance can lead to significant cost savings for both employers and employees through pooled risk and negotiated rates, ultimately contributing to the financial stability and growth of your organisation.
Group health insurance versus cash handouts
Since the pandemic, there has been an uptick in businesses giving cash to employees to sort out their own health insurance. This is not only wasteful but can be harmful to both individuals and the business.
Medical insurance is complex, and workers can find choosing the right policy overwhelming. This can lead to them opting for unsuitable cover, or pushing the task down their to do list and going without, putting their health and ability to work at risk.
Group health insurance is definitely the smarter solution.
Best practices for sourcing group health insurance
Whether you are sourcing group health insurance for the first time or seeking to renew your existing policy, a strategic approach is essential to ensure that your employees receive optimal benefits and that your company pays the right price. Here’s a step-by-step guide.
Assess needs and preferences
Start by thoroughly assessing your workforce’s needs and preferences through surveys or consultations with employee representatives. This will help in selecting a plan that meets their requirements.
Partner with a reputable broker
A reputable insurance broker with expertise in the regional market will provide insights into the best plans and providers.
It’s crucial to compare multiple proposals, evaluating not just the premiums but also the coverage options, network of healthcare providers, and customer service quality. Given the number of variables (some of which are outlined in more detail below), having a broker onside to explain everything to you is invaluable.
Choose between Full Medical Underwriting (FMU) and Medical History Disregarded (MHD)
This is one of the most important considerations when choosing group medical insurance.
FMU involves a comprehensive assessment of each employee’s medical history to determine coverage eligibility and premiums. This approach can lead to more tailored coverage but may exclude pre-existing conditions, potentially limiting benefits for some employees.
MDU, on the other hand, does not consider an employee’s medical history when issuing a policy. While this generally results in higher premiums, it ensures that all employees, regardless of their medical background, receive comprehensive coverage.
Choosing between FMU and MHD impacts not only the cost and inclusiveness of your insurance plan but also employee satisfaction and peace of mind. You need to weigh up these factors carefully to align the chosen policy with your business objectives and the healthcare needs of your workforce.
Your broker can explain the benefits and disadvantages of FMU and MHD in more detail. They may also be able to offer intermediate hybrid options.
Decide whether to include dental and vision cover
Incorporating dental and vision coverage into a group insurance policy can significantly enhance the overall value of your employee benefits package. These benefits are increasingly sought after, as they address essential aspects of employee health that general medical insurance might overlook.
Providing dental and vision insurance not only promotes comprehensive healthcare but also plays a crucial role in preventive care, potentially reducing long-term healthcare costs for your company and your employees.
Ensure your policy has an extensive provider network
The provider network is a critical component of a group health insurance plan. It consists of a select group of hospitals, doctors, and other healthcare providers that have agreed to offer medical services to members at negotiated rates.
Your employees will value an extensive and well-regarded provider network that offers access to high-quality care close to their homes or workplaces. A robust network will minimise their out-of-pocket expenses and is a major plus.
Additionally, a strong relationship between your insurer and network providers will lead to better-coordinated care and more streamlined administrative processes, ultimately contributing to a better healthcare experience for your employees.
Check direct billing is included
Direct billing is a prized feature when it comes to group health insurance plans. With direct billing, healthcare providers will invoice the insurance company directly, so your employees won’t have to pay upfront for healthcare and wait for their expenses to be reimbursed. This significantly reduces financial stress.
As an employer, anything you can do to simplify the healthcare experience for your employees demonstrates a commitment to their well-being and will be appreciated.
Review your group medical insurance plan annually
Regularly reviewing and adjusting your group medical insurance plan based on feedback and changing needs will ensure that coverage remains relevant and valuable. It’s a good idea to conduct your review early as the renewal process can take time, especially if you decide to switch providers.
Why work with a broker to source your group health insurance
As outlined above, there are many different factors to consider when setting up group health insurance and working with a specialist broker with experience in the field will save you and your company time and money.
Here are some of the advantages of working with a broker:
- It takes the stress out of developing a cost-effective, made-to-measure plan for your business
- They provide access to a range of specialist international medical insurers to compare prices and policies
- They will carry out an independent review to determine which policy suits your business best and help with understanding the small print
- They will negotiate the best possible premium
- All elements of the policy will be actively managed for you
- Local support concerning benefits and claims will be provided
- They can inform you of potential tax relief on premiums
- It frees up your time to concentrate on other areas of your job
Whether you are looking to put a group health insurance plan in place for the first time or looking for alternatives to your current policy and seeking comparative quotes, we’re here to help. If you’re looking to attract and retain the best talent and foster a healthy, productive workforce, contact us today to discuss your group health insurance requirements.
A leading provider of expat financial services and wealth management services across Asia.
