Health insurance has now become the need of the hour. With increasing medical expenses, many individuals seek coverage to safeguard themselves financially.
To combat the issue of rising medical inflation, many employers are now offering health plans to their employees. Such plans provide coverage to the employees at a relatively lower cost, due to the benefit of a larger number of individuals being covered.
Understanding group plans for employees
Employee group health insurance plans offer standard medical coverage to employees in a particular organization. Such a plan helps employees enjoy benefits at affordable premium rates. The terms and conditions of the medical policy are applicable to all the insured employees.
While many are of the opinion that group plans are beneficial only to the employee, the same is not true. Group medical plans offer a plethora of benefits to the employer as well. The following five points highlight the advantages of corporate medical insurance for employers.
1. Your employees will be motivated
Due to the availability of preventive health care, your employees will be motivated to a great extent. This, in turn, contributes to greater productivity. Providing them with the benefit of a health insurance policy will improve their quality of life as well as that of their family’s. This will result in a huge return on investment for you. You may reap higher profits in the long run.
2. You may lessen financial burden for your employees
Many individuals often worry about the financial burden associated with high-cost medical expenses. Offering your employees a health plan will provide them financial protection against such costs. They will feel secure knowing that their medical bills will be covered in case of hospitalization. This gives them peace of mind and they may focus on their work to a greater extent.
3. You may benefit from cost-sharing option
In order to avoid high costs, businesses may consider several options such as sharing health care costs with their employees. While a part of the premium cost may be paid by the company, the remaining cost may be passed to the employees. Businesses may offer employee health plans with co-payment or deductibles. This not only reduces the cost for employers but also increases employee accountability.
4. You may attract and retain the best employees
Many businesses fail to understand that offering group health insurance to their employees is a powerful way to attract and retain the best employees. Many employees join or stay with a particular organization due to the benefits they offer. Employees will therefore join and stay with you for a longer period of time.
5. Tax deduction
The good news is that the Income Tax Act allows employers to enjoy tax benefits. Your employees may too avail of tax benefits on health insurance premiums paid for self, spouse, children, or dependent parents. Such plans are therefore a win-win situation for both employers and employees.
There are numerous providers offering health insurance for employees. Compare their plan features and benefits, and select a provider offering the maximum coverage at the best rate. By doing so, you may enjoy the aforementioned benefits.