A group health insurance plan is a health insurance plan that provides coverage to members of a group that secure the interests of employees of a company or members of an organization. Members of the group usually receive insurance at a low cost because the insurer’s risk is spread over a group of policyholders. The group health insurance is managed either by the management or by a group of employees.
The primary advantage of a group plan is that it spreads risk across all the insured individuals. This benefits the group members by keeping premiums low, and insurers can better manage risk when they have a clearer idea of who they are covering. Here we mentioned some benefits of group insurance plans:
1. Protects Employees and Employers:
Its major advantage is to obtain coverage for health for all employees. This makes sure employers that their employees are protected and do not get lots of work because of their illness. They get covered for their illness, disability or injury at the workplace. It ensures the employees that they are protected even for their bodily injuries at work environment. It will really give big support to employees when there is a major illness, they can claim something from the insurance company and continue their services to the organization. One who is looking for a policy need not rush to the insurance companies, the employer will take care of all the necessary formalities.
2. Minor sickness will also be covered:
Under this insurance, the employees can claim their dental medical bills, malaria fever, and ENT related expenses. Hospitalization of the employee less than one day will also be covered in certain cases and for certain policies. Sometimes an unexpected minor illness will empty the pockets, group health insurance has a provision to claim such sickness. All the claims like the doctor fee, medicines and room rent etc will be covered.
3. No Medical Check-up required:
When it comes to group health insurance, it is not necessary for an individual to submit his or her medical checkup reports in order to get enrolled under the group health plan, but it is necessary to submit medical reports in case of individual health insurance.
4. Easy to claim:
It is easy to claim this health insurance, one can directly contact their employer along with their bills and need not run around insurance companies for their liability. Even the illness is critical, one can go through cashless option and get treatment.
The employer will take care of their employee by checking with the insurance company that the insured gets his claim as soon as possible. Since the group of employees is involved in it, the employer makes sure that all his employee claims are cleared and benefit with all the liabilities included in it. All one need to do is to provide the necessary documentation to the management.
5. Lower Premium:
Group insurance plans are cheaper as the risk is spread over a large group and the premium is generally borne by employer Group health plans cannot be customized according to the needs of a particular individual or family. A group health insurance plan is cheaper than individual health plans. Premiums in the former are lower in relation to the sum assured compared to individual health insurance policies. The premium amount of a group health insurance plan is much lower as compared to an individual health insurance plan.
6. Provision for employee family:
Group health is not only supporting the employee but also for their family who is sick. As per the terms and condition, either spouse/dependents can benefit this insurance. A given amount will be allotted for employee family. All the necessary treatment for the patient can be claimed. All the daycare, shifting charges, medicines will be covered. The employee spouse maternity leave bills can be reimbursed. The percentage depends on state policy. They do pay for the ambulance charges to shift the patient from hospital to home or vice versa. It gives huge financial support to the employee and its family to protect themselves.