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Want to Keep your Firm Healthy? Get Health Insurance for Your Staff and Save Money

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Published on February 16, 2022. EST READ TIME: 3 minutes

According to the government’s think tank, NITI Aayog, nearly 30% of the Indian population has no health insurance. That means almost 40 crore people don’t have any financial protection against medical emergencies. Either they haven't bought a policy from a private insurance company or aren’t eligible for a health insurance under any government-subsidised health insurance scheme. This puts a major onus on businesses to provide health plans to their employees to ensure they can afford quality healthcare when needed.

Now, if you are a business owner, it may seem like a conflict, because on one hand, providing group medical insurancecan overshoot your budget, and on the other hand, you are responsible for maintaining your staff’s health and wellbeing. So, what to do?

Here are 7 ways to save money while getting small business health insurance

1. Shop around:

The insurance market is huge and peppered are many products and many players. Also, the prices keep changing every year. It’s advisable to look around and see which group medical insuranceplans are offering you better coverage at a reasonable price. You can always switch to another insurer if they offer you better benefits.

2. Offer an HSA-compatible plan:

Unlike the ‘use-it-or-lose-it’ indemnity plans, a Health Savings Account (HSA) is relatively a new concept in India. It is a long-term account that not only pays for covered medical expenses at present, but also saves on medical expenses employees may incur in the future, especially after retirement. To keep the premium small, you can bring in components like deductible and co-payment. However, it will put a certain financial burden on the employees despite being covered by the plan. So, that’s a tough call you need to take.

3. Provide a solid set of plan options:

The medical needs of different employees are bound to vary. So, buying a one-size-fits-all plan won’t be a great call. For example, the plan for young and healthy employees can help you save money by increasing the deductible and lowering the premium. Since they are unlikely to get hospitalised, the plan works best for them unlike those with health issues on the rise. Providing a variety of group medical insuranceplans gets everyone the coverage they need and saves you the money they won’t use anyway.

4. Educate your employees about health insurance:

Spread awareness about health insurance among your staff. You can send regular emails to employees on how health insurance works and the benefits the plan offers. You can prepare a FAQ sheet with them that explains terms and conditions and different processes. You can invite insurance experts to host a seminar and clarify any residual doubts.

5. Get smart about FSAs:

A Flexible Spending Account (FSA) is another way in which employees can set aside money to pay for health care. You can set it up for them and give them the option to opt for an FSA. The employee can put in money pre-tax from their paycheque and take a call on what health care bills to pay from their account throughout the year.

6. Look for virtual care solutions:

The pandemic has made it essential to adopt a virtual-first environment. And insurance plans have also adapted to the rapidlychanging situation. Today, most health plans offer telemedicine facility wherein you can consult your doctor by phone or video and get treatment for cold, cough,skin rashes, pink eye, etc. This type of plan saves money for everyone.

7. Run wellness programs:

Developing a work culture that cares for employees’ physical, mental, and emotional health will ensure that those health plans are not used much. You can consider including benefits like wellness rewards, vaccination programs, free annual check-ups, low-cost prescriptions, etc. to keep them happier, healthier, and even more productive. Motivate them to quit smoking and lose weight. You can bring in gym equipment or encourage employees to cycle to the office. But first and foremost, you need to lead by example.

Conclusion

While as an employer, you must care for your staff, your employees too should realise the importance of the group medical insurance you are offering. Also make them understand that the insurance you are providing as an employer might not adequately cover all their medical needs. And that they are free to get separate policies as well, to suit their specific requirements.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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