Offering employee medical insurance shows the commitment and willingness of the company for the welfare of its employees. It also creates a supportive workplace environment, which will help attract talented employees to your organisation. Healthcare costs are constantly rising; therefore, providing employee health insurance is beneficial, as it will eliminate the financial burden of medical expenses on your employees.
The group health insurance premium calculator is a handy tool that can help employers determine the cost associated with purchasing a group health insurance plan.
But is policy premium the only factor to consider while purchasing an employee group health plan? No, while the premium amount is an important factor, it is not the only one. If you want employee health insurance coverage that your employees will appreciate, increase workplace productivity, and offer excellent value, you should consider several other factors. Let’s have a look at some of these factors.
Some Key Factors To Consider Before You Buy Group Health Insurance
Coverage Of The Policy
It is essential to choose a group health insurance policy for your employees that provides them with adequate coverage. Make sure you do not compromise the coverage for lower premium costs.
There are certain coverages that employee medical insurance plans should ideally cover like maternity coverage, coverage for pre-existing health conditions, and coverage for family members. However, coverage requirements may vary depending on the type of organisation and other factors. Choosing an insurance plan with extensive coverage will ensure trust and loyalty from your customers.
Additionally, make sure the employee insurance plan has no waiting period.
Customisation Options (at employee’s level)
Understanding the specific and different requirements of all your employees from an insurance plan is quite impossible. This is where customisation helps. You can buy a group health insurance policy from a provider and then let the employees customise it to a certain level to fit their specific requirements.
Therefore, make sure you choose an insurance provider that allows customisation. With customisation options, employees typically have to pay extra to further expand their health insurance coverage.
Flexibility To Modify Insurance Plan (at employer’s level)
It is essential to choose an insurance provider that allows you to easily modify your employee medical insurance plan to fit your needs. This will allow you to make certain changes to your employee insurance plan like decreasing and increasing the number of employees, enhancing the coverage, and more.
Therefore make sure you choose an insurance provider that offers great flexibility to modify a group health insurance plan as per your requirements.
Fast And Seamless Claim Settlement
The main purpose of any insurance policy is to get claim settlements whenever it is required. You can explore different insurance providers and their claim processes to ensure that they offer fast and seamless claim settlements.
A slow claim settlement can be a daunting and time-consuming task for your employees. You can always check the Claim Settlement Ratio and refer to testimonials and customer reviews to learn more about the claim settlement process.
Digital Services
Since the rise of the digital world, everything is done online. Therefore, it is advisable to choose a group health insurance provider that offers online services. These online services should include purchasing insurance policies online and raising claims online.
Additionally, make sure the insurance provider has an intuitive website that allows your employees to easily access assistance and support for their insurance plan.
How Is a Group Health Insurance Premium Calculated
A group health insurance premium is calculated based on the following factors-
Average Age Of Employees
The average age of the employees being insured is one of the factors that determine the premium amount. The higher the average age, the higher the premium amount.
Job Type
The type of job that the employees do determines the insurance premium amount. The higher the risk involved in performing the job, the higher the premium amount.
Number Of People Covered
The insurance premium amount is determined by the number of people covered under the insurance plan, including the employee’s family members. The higher the number of people covered, the higher the premium amount.
Add-on Covers
If your employees want to enhance their insurance coverage, they can purchase add-on covers. Add-on inclusion increases the group health insurance premium amount.
To Wrap It Up
You should always consider your employees’ needs when purchasing employee health insurance. It is important to strike a balance between different factors such as coverage provided, features, services, and premium amount.
Only considering the premium amount will lead to an insurance plan that may not fulfil your employees’ requirement during a medical emergency.