A health insurance policy is essential in today’s world with the rising cost of health care. Medical care and treatment can burn a hole in your pocket and wreck your financial plans. A simple solution to this stress is health insurance obtained by paying a small annual premium.
A group health insurance plan offers coverage to a group of people for example employees in a company. Employer can either self-design a plan or choose a pre-planned insurance policy from their insurance provider. The employer or administrator is responsible for paying the annual insurance premium with regards to the group policy. All members of the organization are covered under the group health insurance plan as long as they are a part of the group. Once a member leaves the group, they are no longer covered by the insurance company.
There are several reasons why group health insurance plans play an important role in today’s world. With a growing focus on employee experience, group health insurance is a great benefit to include. Here are a few reasons why every business should consider purchasing group health insurance plans for its employees:
- Attract and Retain talented employees: Health insurance aims to protect the insured against financial burden in case of a medical emergency. A group health insurance plan makes the employees feel valued in the organization. Not only that, it is a great way to attract the best talent apart from the just the paycheck.
- Increased competition: Companies that offer health insurance as a part of their benefits package attract better and more qualified talent. This gives an edge to your company as compared to the competitors who may not offer the same. Most employees find that a comprehensive benefits package is one of the main motivating factor for them to stay at their current company.
- Lower insurance costs: Group health insurance plans get better rates than individual insurance plans. With more number of employees in a group plan, the cost for each one is lower since the risks are spread across a larger group.
- Improved Productivity: A group health insurance plan is a way to ensure a healthier workforce. Studies show that healthy employees are more productive. Employees with health insurance also take shorter sick leaves as they are able to get treatment faster. Therefore, in order to ensure a more productive workforce, the company must prioritize group health insurance.
- Protection to the dependents: Group health insurance plans provide financial protection to the family members of the employees. The dependents of the employee are covered in the group medical insurance policy. This enables the employees and their families remain stress-free about the financial future.
- Builds community and culture: A good way to reinforce the feeling of community and belonging is through a group health insurance plan. Since all employees are united under the same policy, there is a shared importance of long-term health and happiness. This is particularly helpful while building a company culture as a group health insurance opens conversation about healthy living apart from just insurance itself amongst the employees.
While group health insurance is of importance in today’s world, many companies do not provide insurance to their employees as a benefit since they are unable to see it’s long term impact on the organization. Different countries around the world have different laws pertaining to group health insurance. In the UAE, Dubai and Abu Dhabi have made it mandatory for employers to provide health insurance to each employee. However, the same law does not apply to all countries. In some countries, providing health insurance to your employees provides the employer with tax benefits as group health insurance is considered a business expenses and is not included in the profit.
Another reason why many companies do not provide health insurance to their employees is because they find it complicated, especially small and medium sized businesses. Health insurance benefits is no longer something only large multinationals provide their employees. Many small business owners create a comprehensive benefits package for their employees and health insurance is a key component.
Group health insurance is easier than most companies think. A health insurance broker/agent can help you through the entire process. They will help select a plan that is right you and your employees, based on the industry and the coverage preferences. The brokers also help you through the entire process and keep you informed at each step.
To sum up, your employees are the most important asset of your organization and ensuring their well-being is your priority. Providing them with health insurance is a great way to not only ensure their health and reduce their financial burden, but it also boosts their productivity and establishes a positive company culture. With millennials joining and taking over most of the workforce in the coming decade, group health insurance is sure to become an essential part of the benefits package for every organization, no matter how big or small.
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