Job seekers of this era do not only value money and big packages; they value how the employer treats them. Employees stay loyal to the organisation, which values their hard work. Therefore, companies have now started focusing on employee benefit programmes and initiatives. One such initiative is employer-sponsored health insurance plans. If you are an employer, this blog will highlight the importance of employer-sponsored health insurance plans, and they are set to evolve in the future.

Employer-Sponsored Health Insurance Plan

Group health plan or employer-sponsored healthcare insurance is a type of insurance which is meant to cover the medical expenses of the employees and their dependent family members. The premium of the insurance is paid by the employer, and therefore, it is considered an initiative towards employee welfare. The insurance provides various benefits to employees, ranging from cashless hospitalisation to pre and post-hospitalisation cover.

Features of a Group Health Plan

Group healthcare insurance is a unique insurance plan and has a different work process as compared to normal insurance plans. You must look at the following features it offers:

• Cashless Hospitalisation: The insurance provides a list of network hospitals where the insured can avail of the cashless hospitalisation benefit. The insured just need to inform the insurer about the admission to the hospital to begin the service.

• Affordable Premium: The premium for group healthcare insurance is comparatively less than other insurance premiums as the risk is divided among a large group of people.

• Master Contract: Group healthcare insurance involves a master contract for the employer under which the premium increases when new members are added to the plan and the premium decreases when members leave.

• Option of Contribution: Although the premium is borne by the employer, in case the employee wants more coverage in the plan, they can contribute by paying a nominal premium.

The Future of Employer-Sponsored Health Insurance Plans

Employer-sponsored health insurance plans benefit the employer as well as the employees. It has increased the goodwill of the companies by providing adequate benefits to the employees, which in turn results in higher growth of the company itself. Other than this, the insurance has served as a saviour for the employees during medical emergencies.

Now let us look at the trends which demonstrate the popularity of these plans and will shape their future directions:

• After COVID-19, there has been a sharp rise in buying healthcare plans by the people.  In 2023, there has been a two-fold increase in the health plan premiums as compared to 2022.

• More than 50% of the American workforce receive health coverage from their employer as a benefit of working with the company.

• Earlier, employers used to pay only 80% of medical costs, and the rest was paid by the employer. But now employers protect employees against any catastrophic expenses. This is a positive growth sign for the group health plan.

The above-mentioned points show the positive trends associated with group healthcare insurance for employers as well as employees. With the growing influence of the culture of multinational companies, Indian employers have also started participating in employee engagement activities to boost the satisfaction of their employees.

Bottom Line

Be it a small company or a large one, employees are the backbone of the organisation. Investing in the employees has always benefited the company. For a strong corporate culture, it is important to retain the workforce by providing them the benefits they deserve. This will not only help the company grow but also impact the image of the organisation in the long run.

If you are also an employer who wants to build a great culture, select a group health plan offered by Niva Bupa, the best health insurance company . The insurer has served various organisations and individuals with its high-quality service.

So, what are you waiting for? Choose Niva Bupa today!