Debunking myths around corporate health insurance

Buying private insurance early in life and future proofing it from inflation is important.

Debunking myths around corporate health insurance
Employees should also remember that a GHI may or may not be offered by their employer in the future or benefits could be altered.

While employers wish to give their employees the best of cover, one must realise that it is not the actual cost of treatment but the ancillary services that drive up the cost.

  • Opting for tertiary care hospitals while being treated for minor ailments
  • Option for a higher category of rooms which cost incrementally more for every service
  • Patient not being able to hold the care provider to Standard Treatment Protocols for an illness

A solution is to actively work with insurers to curate a closed network of hospitals based on illness/treatment and strictly follow the room charges limit as prescribed (exceeding the limit transfers the financial burden back onto the employee at a prescribed percentage)

Having a GHI means everything is covered

Employees tend to ignore understanding the insurance coverage until the need arises only to realise at the moment of truth that there could be several limitations e.g. waiting for periods for a certain illness, cap on amounts for certain treatment, limits on certain expenses like room rent (to which other expenses are directly associated etc.). Documentation also plays a key role in timely and better claims settlement.

Employees should also remember that a GHI may or may not be offered by their employer in the future or benefits could be altered (downwards for various reasons). The GHI cover also ceases when employment terminates. Hence, buying private insurance early in life and future proofing it from inflation is important.

The myth that startups and SMEs do not have the need for a GHI

Corporations of all sizes need health insurance. However, less than 5 per cent of SME staff are covered in the current scenario. This is because Startups and SMEs perceive that Group Health Insurance (GHI) is only accessible for and availed by large enterprises. Companies with as few as seven employees can enjoy the same benefits and flexible premium paying options as their larger counterparts. 

In addition, small businesses and start-ups can now bundle their corporate health insurance with outpatient benefits to provide 360-degree coverage for employees and their families, with a preventative emphasis and wellness focus to reduce health risks and compete with larger organisations trying to attract the same talent pool.

by, Dr Noel Coutinho, Co-founder and Chief Business Officer, Ekincare

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