Be it a small company or a well-established one, health insurances are a major attraction to employees and hence it directly affects the performance of your company.
What HR should consider before offering health insurance
When you are a company offering health insurance to your employees, it positively effects your company though you have to weigh out the risk factors also as it deals with big amounts. Here are a few things your HR should compare before selecting an health insurance plan for employees:
Related Read: Why Health Insurance is NOT a Thing to Avoid
1. Weigh out the disadvantages
Insurance premiums tend to change every year, so you should have a good know-how on the working of the particular insurance company and their fluctuations. Carefully analyze the terms and conditions, the duration and the extent to which the insurance is provided. Compare the upfront costs and the payment pattern of different companies and see which one suits you best.
2. The number of employees in your company
Depending on what size of a company you are, HR must be very careful in deciding this sort of thing. While smaller company or an entrepreneurial venture may have lesser employees, they also have a smaller amount go capital they can invest in health insurance. All of these things certainly count when deciding health insurance policies.
3. Look for a renowned trusted insurance company
In today’s world, being fooled at all levels is very common. It’s better to be safe than sorry. Insurances, over time tend to take up a good amount from us, and if it is not returned as promised, it will be counted as a very big loss, leading to a loss of trust and reputation of your company. The employees expect you to authenticate the insurance company that you are offering, hence it is important for your HR to carefully look into the credibility of the insurance company and try getting the ones that are known and trusted in the market.
4. The post you are offering the insurance too
Like with every post, the salary varies, similarly the insurance policies should be such that they cater to the position your employee is on and is worth their standard. This not only attracts the best of employees to apply, but also gives a good outlook to your company’s attitude towards its workers.
This is the most important factor which determines the worth of an insurance. As per definition, insurance coverage is ‘the amount of risk or liability that is covered for an individual or entity by way of insurance services. Insurance coverage, such as auto insurance, life insurance – or more exotic forms, such as hole-in-one insurance – is issued by an insurer in the event of unforeseen occurrences.’
6. Claim process
This includes the procedure of pre or post payments by the insurance company. It refers to the process of submitting medical slips to the company and claiming the money. This is the core procedure in any insurance company.
7. Existing illness
A pre-existing condition is a medical condition that started before a person’s health insurance went into effect. This is important for employees who are suffering from a particular illness which is lifelong before getting the insurance. This is a very common phenomenon, hence should be taken into consideration.
8. Deductible, co-payment and the coinsurance
Deductible is the amount that you have to pay before the insurance companies starts covering your eligible health costs. Co-payment is something similar to deductible but has to be paid each time you want to use your insurance. However, coinsurance is the percentage of cost that you will have to pay during any medical procedure (this is your share of the total cost). As it is evident from the definition, this is how the insurance companies work, thus it is one of the core information that has to be evaluated by the HR before final selection.
Related Read: 6 Vital Dos And Don’ts Of Health Insurance Plans
Companies, especially newer companies and entrepreneurial ventures, should seriously consider giving their employees health insurance. Nowadays, health insurance is a huge attraction for those interested in any job.