Corporate Health Insurance: Features, Types and Benefits

Corporate health insurance is a group health plan offered by employers to their employees as part of a comprehensive incentive package. As part of an organization, you (and typically your family members) are covered under a group health insurance. In case of hospitalization or treatments, you can claim this insurance. The premiums are often paid entirely by the company or can be shared in a few instances.

Employees prefer group health insurance because it protects against medical emergencies. Employers can attract and retain talent with such offerings in a highly competitive job market. Let us understand the features, types and benefits of corporate or group health insurance.

Difference between Individual and Corporate Health Insurance

Conceptually, the two concepts are similar. In the case of individual health insurance, you have a direct agreement with the insurer. You choose the type of health insurance coverage and pay the premium out of pocket.

On the other hand, in the case of corporate health insurance, there is collective bargaining as you are insured as a member or employee of an organization. The employer pays the premium, and you are typically covered as long as you are part of the aforesaid group. On a per-capita basis, this is a highly cost-effective measure of forwarding health insurance coverage.

Key Features of Corporate Health Insurance

Here is a table describing the key features of corporate health insurance:

Types of Corporate Health Insurance Plans

Here is a list of the most common popular corporate health insurance plans:

Benefits of Choosing a Corporate Health Insurance Plan

Here are a few critical benefits of choosing a corporate health insurance plan for employees and employers:

Considerations While Choosing a Corporate Health Insurance Plan

Here are a few tips that can help in selecting a corporate health insurance plan:

1. You must have clarity about the requirements and demographics of your employees (such as age, working conditions, and medical requirements)

2. You must go through the options and exclusions (such as cashless coverage, hospitalization, maternity, or pre-existing conditions)

3. You must research the potential insurer’s track record, complaints, feedback, and customer service network, along with the affiliated list of hospitals

4. You can choose between contributory and non-contributory plans depending on your budget and how much coverage you need for the employees. It is highly advisable to discuss it with your employees before making a decision.

FAQs

• What is the difference between corporate health insurance and individual health insurance?

Corporate health insurance is offered by employers to employees as a group benefit, often with the premium fully or partially covered by the employer. In contrast, individual health insurance is purchased personally by the individual, with premiums paid out of pocket.

• Does corporate health insurance cover pre-existing conditions?

Yes, corporate health insurance often covers pre-existing conditions, but it may include a waiting period depending on the insurer's terms and conditions.

• Can employees customize their corporate health insurance plans?

Typically, corporate health insurance plans are standardized for the group; however, some insurers allow limited customization through add-ons or upgrades at the employee's expense.

• Is maternity covered under corporate health insurance?

Many corporate health insurance plans include maternity and newborn coverage, but the specifics and limits vary based on the plan chosen by the employer.