Creating a successful business begins with creating a successful team. Maintaining a successful team begins with making sure they feel truly appreciated. Compensation is important. Opportunities for advancement are important. The work environment is important. However, one of the most effective ways to show an appreciation for your workers and their contributions is by offering comprehensive health insurance benefits for employees.
Not only does this make a lot of sense emotionally, but from a business perspective it is also quite logical.
The Reality of Healthcare Costs in India Today
The costs of medical care in India have increased by about 14 percent every year. One hospital admission for a commonly treated illness can vary from Rs. 50,000 to lakhs of rupees based on the type of hospital, the location, and the complexity of the treatment process.
For the majority of the workforce receiving salaries, paying such a high medical bill is financially draining. Such a situation does not only affect them outside work but also hinders their efficiency at work, and ultimately prompts them to look for better working opportunities elsewhere.
Health Insurance for Employees takes away all such worries and provides assurance and loyalty instead.
What Employee Health Insurance Actually Covers
- Hospitalisation insurance – This forms the main feature of all health insurance plans for employees and entails costs incurred from room, nursing, surgical, diagnostics, and medications while an employee is hospitalised.
- Expenses incurred prior to and after hospitalisation – Good health insurance covers medical expenses incurred before hospitalisation and even after hospitalisation up to 30-90 days depending on the terms of the policy.
- Outpatient procedures – These include chemotherapy, dialysis, cataract surgery, among others which do not need overnight stay in hospital.
- Maternity insurance – Good employers ensure that their female workers receive coverage under maternity insurance policies due to this important period in their lives.
- Insurance of the family – Coverage of the family members like spouses, children, and parents can greatly add value to a company’s business.
- Cashless treatment – Employees will benefit from cashless treatment at hospitals within the insurance network.
The Business Case for Offering Health Insurance Benefits
Other than addressing the human angle, there is a strong business case for the provision of health insurance benefits to employees, backed by practical examples.
- Attracting talent – In a competitive recruiting environment, offering full health coverage makes a big difference. Job seekers analyze the benefit packages offered by organizations before accepting a job offer, and those that have good coverage always end up attracting better candidates.
- Reducing staff turnover – Replacing a worker involves spending as much as 50 to 200 percent of his/her annual pay considering the costs involved in the replacement process. Health insurance serves as an incentive for retention and yet at an extremely affordable rate compared to this cost.
- Improved attendance – Workers with health benefits will not delay seeking medical attention out of fear of having to pay, ensuring faster recovery, and reducing days lost to illness in the organization as a whole.
- Increased productivity – One of the main causes of underperformance among workers is financial pressure. When workers know that their families are protected, they will concentrate and put more effort into work.
- Tax savings – Contributions to health insurance premiums are considered deductible expenses in business.
Choosing the Right Group Health Insurance Plan
Not all group health insurance policies are made equally. Consider the policies based on the total amount insured, the network of hospitals covered, the percentage of claims settled by the insurance company, maternity cover, and the quality of claim handling.
The involvement of the employee in discussions regarding their priorities establishes a relationship based on trust, which is helpful in choosing the right plan for your organization. The cost-effectiveness of group health insurance increases as the number of employees rises, something that many businesses don’t realize initially.
Invest in Your People and Watch Your Business Grow
Those employers who consider health care benefits as an integral part of their overall people policy have stronger teams, less employee turnover, and a culture that is attractive to real growth talent.
The efforts of your employees every single day should be recognized by you in such a manner that their hard work becomes more than worth it for them.
To help you design the perfect group health care plan for your company, contact Insurance Guru today.
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