Corporate Medical Insurance: A Growing Need in Indian Workplaces
Corporate medical insurance is a health insurance plan, offered by an employer to a group of employees working in the same organisation. It is also known as Group Health Insurance.
image for illustrative purpose
Corporate medical insurance is a health insurance plan, offered by an employer to a group of employees working in the same organisation. It is also known as Group Health Insurance. Healthcare costs are rising in India due to technology advancements, cost of medicines, medical equipment, and increased prevalence of lifestyle diseases. Moreover, the awareness towards overall well-being has gained traction after covid - 19 pandemic. Employers provide health insurance to employees because of a couple of reasons:
- To reduce financial burden in case of health uncertainties
- To promote employee’s overall well-being
- To retain talent
When the employees feel at ease - healthwise, their productivity increases, and they are likely to be loyal to their organisation. Therefore, corporate medical insurance known as group health insurance, too is gaining popularity in Indian workplaces.
The Evolution of Employee Benefits in India
The employee benefits in India has evolved from basic, lawful provisions to a wide range of offerings, which are aimed at attracting and retaining talent. Previously employers focused on providing compulsory benefits such as Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI). However, employees are now providing other supplementary benefits such as health insurance, wellness programs, and flexible work arrangements. This shift in providing additional benefits is driven by the competitive job market, and increased emphasis on employees’ well-being and work-life balance.
Why is Corporate Medical Insurance Gaining Traction in India?
There are multiple reasons due to which Corporate Medical Insurance is gaining popularity in India.
- Increased Healthcare Costs
The prevalence of lifestyle diseases has increased over the past few years and a recent study found out that one in every two individuals has a lifestyle disorder. Moreover, the technology advancements for services and treatments have led to an increase in overall healthcare costs. This leads to increased financial burden on employees as they navigate through treating themselves and their loved ones at preferred network hospitals. If employees are covered under a health insurance plan, they do not have to worry about their finances as the insurance covers the healthcare costs. This reduces their financial stress and helps them focus on their work and treatment of the ailments.
- Increased awareness towards health and overall well-being
There is a growing awareness amongst people about their and theory family's well-being. You read about surge in hospitalisation costs and increased prevalence of lifestyle related diseases and understand the importance of maintaining a healthy lifestyle. So, you try to control factors which are in your hand such as adopting healthier lifestyle, working out, eating clean food and also keep you and your family covered under a comprehensive insurance plan in case of health uncertainties. When you decide to join an organisation, the decision is not just based solely on the monetary benefits, but the additional benefits too, and having health insurance cover for self and family is one of them.
- Attracting and retaining talent
When employers want to attract new talent, they have to keep in mind that today’s employees are focused on their and family's health, well- being as well as work- life balance. They want to work and be loyal to an organisation that promotes their health and well being and understand the importance of work-life balance.
When employees are covered under a group health insurance plan, they feel financially safe and secured. They are likely to stay loyal to their organisation, this helps employers retain talent.
What Does A Corporate Health Insurance Plan Cover?
Most corporate health insurance plans are comprehensive and they cover a range of services for employees and their family. The benefits vary as per the policy, so the employees need to check their policy documents to understand their coverage in a better way. Here is a list of services most insurers cover:
- In-patient services
Most insurance plans cover treatments which require hospitalisation. They cover medical expenses such as room charges, surgeries, medicines and non medical expenses which occur during the course of the treatment.
- Out-patient services
The plans cover the cost of consultations, diagnostic tests, x-rays, scans, and minor procedures which do not require hospitalisation.
- Maternity and newborn cover
Most plans cover prenatal care, baby birth, and post-natal care. They also provide coverage for newborn consultations and vaccinations for at least 30 days after their birth till the newborns are added to the family health insurance network.
- Preventive checkups
As most lifestyle diseases do not show symptoms during the initial stage, it is important to get a health check up done every year. Most insurance plans cover these checkups so that employees can get the required tests done.
- Dental and ophthalmology cover
Many employers add this cover to their employees group insurance plan. These treatments are expensive and require multiple sessions. When they are covered under insurance, it can be of good financial help.
Final Thoughts
As most corporate health insurance plans are comprehensive, they reduce the financial burden on the employees of an organisation. The plans help them focus on their treatment without worrying about the expenses and their savings taking a hit! Therefore, employees consider joining an organisation which not only provides them a good monetary benefit, but also focuses on their well-being and work-life balance. Therefore, corporate health insurance is a growing need in Indian workplaces.
