By: Gregory Rozdeba

Most employees today are looking for an employer that offers more than just a paycheck. One of the benefits they look out for is group health insurance. In fact, the importance of these policies has grown during the pandemic.

A group health insurance plan can also be of significant benefit to the employer. If employees are healthy, productivity and employee turnover can improve. A group health insurance plan also helps employees during medical emergencies. This can reduce stress levels and further improve overall morale.

Let's talk about some of the biggest benefits of group health insurance for the employer.

What is Group Health Insurance?

As the name suggests, this type of policy provides health insurance to a group of people. They are also referred to as corporate health insurance plans. Group health policies are used as a loyalty-building tool in most businesses. The premium payments of these policies are always handled by the employer.

The premiums are generally low for such policies. This is because the risk factor for the insurance company is spread out among a group of people.

How Group Health Insurance Works?

Group health insurance plans are not available to individual buyers. They can only be purchased by companies or groups that can ensure 70% participation. No two plan types are the same due to the differences between insurers, terms, and costs. Once the company has decided on an insurance plan, the employees can choose if they accept or decline the policy.

In some cases, the employees may have an option to opt for basic coverage. There is also an option for advanced coverage, which includes add-ons. The premiums are then split between the company and its employees based on which plan is chosen. Health insurance benefits of these plans may also be extended. these can include the immediate family of the employees for extra charges.

Benefits of Group Health Insurance for Employees

Since the policy is designed for employees, it comes with some significant benefits. Some of these benefits include:

·      Free Health Insurance Coverage

Since the policy is usually purchased by the employer, it ends up being free for the employee. Employees may feel like the coverage they are receiving is not enough. They may make additions at extra cost.

·      Faster Turnaround Time

Being enrolled in group insurance allows for faster claim settlement. Companies prefer going for insurance providers which offer fast service to their employees.

·      Easy Access to Family Health Insurance

Buying health insurance for their spouse and children can be expensive. A group policy can cover all immediate family members of a person. It also comes with no extra premium payments. The plan also offers easy health coverage for parents. This is usually a tough task because of the age and health risks.

·      No Waiting Period

For most insurance policies, insurance companies have a waiting period. especially when it comes to maternity benefits and diseases. This means that a person cannot claim benefits for a certain time after these events. This limitation does not exist in group insurance policies.

·      No Medical Screening Needed

Medical screening is important for insurance companies. it allows them to determine the status of the person who is buying a policy. The premiums on the insurance plan may increase or decrease depending on this. This does not apply to group policies.

Benefits for Employers

There are also noticeable benefits for employers, specially those providing a group health insurance option to their employees. These include:

·      Protecting Their Investments

Every employee is an investment in some way to the company. If they are unable to work due to health reasons, the company loses an asset.

·      Maintaining Productivity

A group insurance plan reduces absentees and increases productivity. This is because employees are more focused on their work rather than medical issues.

·      Attracts Employees

Having a health insurance policy on offer is attractive. It increases the level of commitment and satisfaction from the employees

·       Tax benefits

Having a group plan maximizes tax compensation for your employees. This is because these plans make sure medical expenses are paid pretax for your workers.

Conclusion

If your business qualifies, having group health insurance can be beneficial.

These plans are more affordable than individual health insurance. They help to increase employee morale and you may even attract new talent to take your business to new heights.