Conversations about employee health and wellbeing are more open than ever before, particularly after the Covid-19 pandemic. Both employers and employees seem more comfortable discussing topics surrounding work-based health and how important the work-life balance is to attain.
With 88% of workers reporting employment-based health insurance is far more significant than any other workplace benefit, it makes sense that businesses and organisations are providing group health insurance opportunities for their employees.
From a business leader perspective, it’s interesting to note that 86% of employers believe they are responsible for the health and wellbeing of their team. A sense of care and respect is vital for any business to grow while ensuring staff are looked after with access to healthcare when required.
Contents
- What is group health insurance?
- How does group health insurance work?
- 3 key group health insurance requirements.
- Why your business benefits from group health insurance.
What is group health insurance?
Group health insurance is a type of health insurance plan offered by an employer to their employees or members of an organisation. In general, this plan is placed at a lower cost for each employee or member due to the fact that any risk to the insurance provider is dispersed between all of the policy members.
In the US, around 50% of employed Americans are covered by employee health insurance. Although this figure differs from country to country, the rate of group health insurance in Europe has increased over the last two decades.
This may be the result of a number of factors, from the pandemic to a greater awareness of the link between improved employee wellbeing and good healthcare provision.
How does group health insurance work?
Delivering peace of mind to your employees, your group health insurance policy enables you to offer private healthcare to all of the people who work in your business at a reasonable cost.
This means that your employees are able to access appointments and relevant healthcare as and when they need it, even if they can’t afford a private health insurance policy individually.
Some group health insurance plans may have more premium options and others might provide basic coverage, it all depends on the group health insurance requirements that suit your business and support your employees.
3 key group health insurance requirements
Whichever group health insurance provision you select, it’s likely that its fundamental requirements may differ from other policies. No two policies will be exactly the same, so researching the right group health insurance policy that suits your business objectives and supports your staff effectively is a sensible choice.
Here are 3 key group health insurance requirements:
- Minimum employee inclusion
Notably, many group health insurers will expect that a defined number of your employees will sign up to your group health plan. In the US, this participation rate is around 70%, but varies from region to region.
- Employer contribution
There may be a general expectation that employers pay a certain amount towards the group health insurance provision for their employees. Each policy will vary on the percentage, so it’s sensible to talk this through with your provider.
- Open enrolment phase
If you begin a group health insurance plan, it is often the case that there will be an enrollment period. This allows employees to understand the plan, enrol if they choose or make any changes they need to their coverage.
A professional and experienced group health insurance provider will ensure their policies comply with local regulations so that you have appropriate coverage for your employees.
Why your business benefits from group health insurance
There are a number of reasons why your business is boosted by offering group health insurance to your employees. The likelihood is that if you cover your employees’ health needs, you can attract and retain the type of talent you need within your organisation to grow your business.
If your employees feel looked after and healthier, chances are they can increase their productivity and reduce any absences from work. They may also feel more confident and positive in their role if they believe their employer cares about their health and wellbeing.
Plus, you may find there are tax advantages to leverage with group health insurance plans. Your policy is potentially less expensive and more cost effective as it distributes risk across a group of employees.
At GasanMamo, we like to help you prioritise your staff. Our health insurance policies are truly adaptable and deliver exclusive medical and health benefits. We support you with everything from policy initiation all the way to claims processing.
Interested in learning more or receiving a quote? Visit our Group Health Insurance page or reach out to us by clicking Quote.