Offering Health Insurance to Your Workforce

Corporate health insurance serves as a valuable perk that boosts organisational productivity. So, employers should keep up with the latest health insurance rules and think about what their employees want and need when choosing health insurance plans.

Process to Offer Health Insurance for Employees

Here is a detailed process to introduce medical insurance plans to your employees: 

Understand Legal Requirements 

Thoroughly go through the legal procedures to stay in compliance with the law. As per the ESI Act, 1948, if your company: 

• Holds more than 20 employees 
• Pays a wage of Rs. 21000 per month to an employee

Then, the employer must contribute to the Employees' State Insurance (ESI) scheme to provide medical benefits to employees. It is important to note that the ESI scheme is a mandate and is not related to additional health insurance plans. 

Choose a Health Insurance Plan 

This is the most important aspect of offering medical insurance schemes. Group health insurance plans cover a pool of employees under a single policy. These plans are more affordable than individual policies because they spread the risk among many individuals. You can also choose policies based on the size of your workforce, location, and medical needs.

Communicate the Benefits to Employees

Once the insurance plan is finalised, it is crucial to clearly communicate the details of the coverage to employees. This can be done via HR meetings, webinars or integrated communication channels like emails and internal portals. You must furnish detailed documents explaining how to make claims, network hospitals, exclusions, and any other information.

Monitor and Manage Claims 

The employee must possess the proficiency to seamlessly manage claims. Claim management includes submitting documentation, and medical bills, along with coordinating with the insurance company. 

You can also appoint an internal team to assist with claims and support employees with any questions or concerns they may have regarding the insurance.

Review and Renew the Policy

Most group health insurance policies typically have an annual renewal cycle. It is important to assess the claims experience and employee feedback before renewing the policy. Ensure to make adjustments to the coverage or premium as per the claims experience or changing needs of your workforce.

Inform Them about Tax Benefits

Corporate health insurance policies offer major tax benefits. The premium paid by an employer for a group health insurance policy is tax-deductible as a business expense under Section 37 of the Income Tax Act. 

Similarly, employees can also claim tax benefits under Section 80D for the premiums paid for the health insurance of themselves and their family members. 

Benefits of Offering Health Insurance Plans to Employees 

Here are important advantages of health insurance provided by employers and the reasons you should provide it: 

• Health insurance plans can significantly bring down absenteeism. 
• A corporate health insurance plan can be used as a recruiting tool. 
• It maximises employee retention.
• A health insurance scheme can also boost employee satisfaction. 
• Since it is tax-deductible, it can reduce overall expenses. 

Employees are the backbones of an organisation. Similar to any other assets, companies must insure their physical assets, the workforce, to build a successful future together. 

Also read:-

→ Staying on Your Parents' Health Insurance: Age Limits

→ Steps to Join Chief Minister Health Insurance Scheme

→ How Does Tax Credit Work on Health Insurance

→ What are the top 10 health insurance in India

→ What are the top 10 things to consider before buying health insurance