A group health insurance plan is typically offered by employers, organizations, and business groups to their employees as part of their employee welfare programs. It provides health coverage to a group of members or employees and/or their dependents such as parents, spouse, and children. Members of the group health insurance plan usually receive health insurance at a reduced cost because the risk is spread across a group of policyholders. The cost of the premium is split between the organization and its members. Health coverage is provided to an individual employee as long as he or she is part of the business.
Group Health Insurance Plans have many advantages for both the employee and employer when compared to an individual insurance policy. However, it is not a great alternative to an individual policy for those professionals who keep switching between jobs. Still, group health insurance coverage is one of the most preferred health coverage among employees as well as employers in the USA and Canada because of the many benefits they receive through group plans.
Benefits of Group Health Insurance Plan for Employees:
1. Default health coverage:Since the health coverage is provided to all the employees by an employer. Therefore, it is a default health insurance that employees receive they join an organization that offers group health coverage to its employees as a welfare measure. The employee automatically gets covered in the group plan after joining the organization.
2. Health coverage at a reduced cost:It is beneficial for those who cannot afford the cost of a premium of an individual Medi claim policy. The premium cost is usually borne by the employer to provide medical care to its employees.
3. No need for pre-medical screening:When an employee joins an organization, he automatically gets covered in group health policy. They don’t need to go through a pre-medical screening to receive the benefits of health coverage.
4. Easy claim process:In group health coverage plans, the claim process is very simple. Everything is taken care of by the insurer and human resource department of the organization. One can receive their claim amount through a speedy settlement process in a hassle-free manner.
Benefits of Group Health Insurance Plan for Employers:
1. Lower premium costs:the most significant and immediate advantage of group health policy for employers is that they have to pay a lesser premium amount as the risk is spread across a group of policyholders.
2. Tax benefits:Employers can take advantage of tax deduction benefits associated with group health insurance policies under various sections as per the tax policies in the state.
3. Greater employee satisfaction and retention:Organizations that provide group health coverage to their employees witness a greater employee satisfaction and retention rate. It shows that their employee benefit programs are more employee-centric. It motivates employees in many ways to show loyalty towards the organization and perform better.
4. Flexibility to pay premiums:With group health policies, organizations can decide whether they want to pay premiums monthly, quarterly, or annually.
If you run a business and looking for Group Health Insurance Plan in Austin, in the USA, as part of your employee benefits program, contact The Lambert Agency for your employee health benefits at a much lower cost. We will help you get the group insurance program that’s right for you and your employees.