People are now more concerned about maintaining a healthy lifestyle as a result of the pandemic. People are looking for health insurance because of their fear of being hospitalized due to disease and growing healthcare costs. People consequently favor employers who provide health insurance. Employers acknowledge this need and provide assistance to their staff in the form of comprehensible group insurance. For additional details, continue reading.
Group Insurance for Employees: Pros and Cons
Employee health insurance or a corporate health insurance plan are two terms used to describe group health insurance for employees. Employers buy these group health insurance policies for their staff members. Here is a summary of the benefits and drawbacks of such employer-employee insurance.
Group health insurance benefits
Some of the benefits of such a policy are listed below.
The firm pays the premium for a group medical insurance policy on behalf of the employees. As a result, the employees have free access to such a plan.
No Holding Period
If your policy has a waiting period, you must “wait” for a set number of days before you may submit a claim for a condition that already existed. This waiting time is not present in a group health insurance plan for employees because pre-existing conditions are covered right away.
Provide protection for kin
You can include family members in the Group Insurance Policy for Employees’ coverage. For instance, you can choose to have the coverage cover your parents and spouse in the event of a medical emergency.
Coverage of Maternity and Newborn Babies
The Group Insurance Scheme for Employees’ coverage of maternity-related costs is a significant benefit (delivery and related medical treatment). The newborn child is similarly protected for up to 90 days.
Leading insurance firms that provide this type of coverage have agreements with hospitals that streamline the claim-settling procedure. As a result of this partnership, the insurer and the hospital may easily settle their hospital expenses.
Such a plan will also cover outpatient therapy. Therefore, in accordance with the terms and circumstances of the insurance, treatment received as an outpatient (without being admitted to the hospital) at a hospital or daycare facility shall be covered.
Group Insurance Policy Drawbacks
Some of the drawbacks of such a policy are listed below.
Concern about Termination
You will no longer be covered by the Group Health Policy if your employer fires you or if you decide to quit the firm. Simply said, you will be protected by the policy for as long as you are a member of the group—in this case, as long as you are an employee of the business.
Dependent on employer Cover
Your employer has the authority to decide on the health insurance provider, the scope of coverage, and other aspects and advantages of the health plan. There is less room to accommodate the demands of each individual in such a situation.
For metro locations where the cost of hospitalization is higher than average compared to other places, the coverage provided by Corporate Health Plans may not be sufficient.
No Tax Advantage
You are not eligible to get tax benefits under section 80D of the Income Tax Act since you are not paying the premium to obtain health insurance. However, if you upgrade the coverage and pay for the extra coverage, you can take advantage of them.