10 Questions to Ask Before Choosing a Group Health Insurance Plan

  • postauthorDisha Sanghvi
  • postdateApril 29, 2024
  • postreadtime7 min read
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Group Health Insurance

The importance of health insurance has significantly increased since the onset of the Covid-19 pandemic. If you are an employer or running your own company, selecting the right group health insurance for your employees is crucial.

The right group health insurance plan should offer your team maximum healthcare and wellness benefits at a reasonable cost. During this process, you may have many questions that require answers. To make the process easy for you, we have compiled a list of 10 key questions along with relevant answers to assist you with finding the right insurance plan for your team.

10 Questions to Ask Your Group Health Insurance Providers

1. What is a Group Health Insurance Plan?

Group health insurance is an effective way to provide health coverage to a large group of people, typically employees of an organisation. It offers comprehensive coverage for medical expenses, including diagnostics, hospitalisation, prescription drugs, and other medical services.

Group health insurance plans are purchased by the employer or organisation, which typically pays the premiums on behalf of the employees. Given that the risk is spread across a wide group of individuals, the premiums are often more affordable than individual health insurance plans.

If you are looking for a cost-effective way to provide health coverage for your employees, group health insurance plans are worth considering.

2. How Many Employees Are Required to Buy a Group Health Insurance Plan?

To qualify for a group health insurance plan, a company typically needs to have a minimum number of employees, usually determined by the insurance provider. According to the insurance regulator, to be eligible for group insurance, a company must have a minimum of 7 or more active employees.

However, with Onsurity’s unique model, even companies with as few as three employees can take advantage of group health insurance benefits.

This means that companies of all sizes and across various sectors, from small grocery stores to large corporations, can provide their employees with comprehensive health coverage. As long as the company meets the eligibility criteria of the insurance provider, they can enjoy the benefits of having a healthy and productive team.

3. What Should a Group Health Insurance Plan Cover?

Given the multiple options available in the market, identifying the right plan for your employees may seem confusing. If you’re responsible for purchasing a group health policy for your company, here are a few tips that can help you make the right decision.

First, it’s important to understand the needs of your employees to ensure that the policy you purchase will be beneficial to them. One way to achieve this is by circulating a questionnaire among your employees.

Next, you’ll need to calculate the appropriate amount of coverage by considering factors such as medical inflation (which is currently at 14% in India, highest in Asia), the average age of your employees, and the work environment.

Here’s where you also dive deep into whether your employees would need just health insurance or term and personal accident insurance as well. This information will help you make informed decisions when selecting a plan.

Also, Read: Top 8 Key Features of Group Health Insurance

4. How Can You Buy a Group Health Insurance Plan for Your Employees? 

When it comes to purchasing the plan, you can either contact insurance companies directly or work with insurance intermediaries like Onsurity. If you have a small number of employees, it may be best to work with an intermediary who can guide you through the process without any hassles.

Once you’ve found the ideal group health insurance plan, the next step is to complete the proposal form and submit it to the insurer for approval. If you’re unsure about the pricing and benefits of the plan, it’s important to compare multiple options and seek guidance from advisors. Carefully evaluate the policies and benefits being offered before making a final decision.

After selecting the plan, it’s essential to train your team on how to use their new insurance benefits effectively. By doing so, you can empower them to tackle their work with confidence and peace of mind, knowing that they have the support of a reliable insurance partner.

Quick Read: Group Health Insurance for Small Business

5. What Are Cashless Network Hospitals?

A Network Hospital is a medical facility that has an agreement with an insurance company to offer cashless treatment to policyholders. Insurance companies provide a list of network hospitals to policyholders and this list can also be found on the insurance company’s website or intermediaries’ websites.

Network hospitals have a tie-up with the insurance company to provide the benefit of cashless hospitalization to policyholders. This means that the policyholder does not have to arrange funds for hospitalization as the health insurer will directly settle all the hospital bills.

Also, Read: Difference Between Network and Non-network Hospitals

6. What Are Cashless Claims? 

Cashless claims can be a lifesaver when it comes to managing hospitalisation expenses. This facility, provided by insurance companies, allows you to skip the hassle of making upfront payments at the time of hospitalisation. You can get treated at a network hospital without worrying about paying at the time of admission.

In contrast, reimbursement claims require you to pay for the medical expenses upfront and then submit the bills for reimbursement, which can be time-consuming and financially straining.

Network hospitals have tie-ups with insurance companies, which means the insurer directly settles the bills as per the policy terms and conditions. This makes the process seamless and ensures that you get the necessary help when you need it the most. Approvals and payments often happen within hours, providing quick relief during a time of medical need.

7. What’s the Right Amount of Sum Insured I Should Get for My Employees?

The “sum insured” is the maximum amount of money that an insurance company will pay out in case an employee, or their family member is hospitalized. When deciding on the sum insured for your group health insurance plan, it’s important to consider the rising costs of medical inflation and the type of hospitals that your employees will likely go to for treatment.

It’s also worth noting that the additional sum insured typically becomes cheaper as you increase the coverage amount. For example, an INR 4 lakh cover may not cost twice as much as an INR 2 lakh cover. It’s worth calculating the group health insurance premium for higher coverage amounts to determine if the additional amount spent is worth it.

As a general guideline, it’s recommended to go for at least INR 3 lakh of coverage if your company is located in a metro/tier-1 city, and a sum insured of INR 5 lakh if you plan to insure your employee’s family members as well. This will ensure that your employees and their loved ones are adequately covered in case of a medical emergency.

8. Does a Group Health Insurance Plan Cover Employees’ Family as Well?

Group health insurance plans that offer family cover can be especially beneficial as they provide coverage not just to the employees but also to their dependents, such as spouses, children, and parents. This can help ease the financial burden in case of hospitalisation of any family member.

Additionally, some group health insurance plans also offer coverage for senior citizens, which is especially important as they may require medical attention more frequently. If the policy does not provide coverage for senior citizens, they can still be covered under a separate health insurance policy that can be purchased as an add-on to the group health insurance plan.

Suggested Read: 10 Best Insurtech Companies in India

9. Can You Pay Monthly Premiums for Group Health Insurance Plans?

Are you a business owner looking for a comprehensive group health insurance plan for your employees? It’s essential to consider the premium payment frequency while selecting the right plan.

Most group health insurance policies require annual payments, regardless of whether an employee remains with the company for the entire year or not. This could be a problem for small and medium enterprises facing high attrition rates.

However, Onsurity has a solution to this challenge – monthly subscription-based health and wellness plans. With this plan, businesses can pay premiums only for active employees every month, ensuring flexibility and cost-effectiveness. For larger companies with lower attrition rates, half-yearly or annual payment options are also available.

In addition to payment flexibility, Onsurity’s group health insurance plans also offer comprehensive coverage, including family cover, senior citizen cover, and cashless claim settlement at network hospitals. Protect your employees’ health and financial well-being with Onsurity’s group health insurance plans.

Also, Read: Group Health Insurance for Startups

10. Is Health Insurance Enough When It Comes to Offering Healthcare Benefits to Employees?

As the Indian workforce evolves, the expectations of employees have changed. No longer satisfied with a basic insurance plan, they are looking for comprehensive wellness benefits that go beyond coverage for hospitalization.

To attract and retain top talent, employers must recognize the importance of preventive care and offer a range of health and wellness benefits, such as teleconsultations with doctors, regular lab tests, and fitness perks.

Forward-thinking companies are stepping up to the challenge by providing their employees with access to a variety of health and wellness benefits that allow them to monitor their well-being throughout the year.

With Onsurity’s comprehensive health and wellness plans, you can not only meet your team’s health insurance needs but also gain access to a broad range of health and wellness benefits.

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