Group health insurance plans are meant to provide coverage to a group of people. Health insurance is beneficial to employees because of the following reasons.
Group health insurance is employer-sponsored health coverage for business owners, employees and often for dependents. Purchase of health insurance plan is investing for that protection and wellness of you and yours family health, based upon the plan opted for. Health problems can happen unexpectedly. Usually when such things as this happen, a sense of confusion is the family who have been surprised about the cost to be borne. As everyone knows, now is the cost to aid health can not be said to be cheap, you could even say very costly. To overcome such difficulties later on, we need health insurance.
To put it in additional simple words, as part of the group health care insurance the employees of a company receive all sorts of medical treatment and medical services they might need without having to wait for prolonged period of time or suffer on unnecessary grounds. Such an insurance scheme is actually inherently packed with a number of benefits that are enjoyed by both owner of the business and the employees.
By having group health insurance, a variety of health-related in the form of hospital costs, physician costs, drug costs, as well as the operating costs will be borne through the insurance company. Of course it all depends on the terms and conditions stipulated through the insurance company in the agreement.
Group Health Insurance
For that employee, being a member of a group health insurance plan has many valuable benefits, that your monetary value cannot be placed on. In the first instance, they don’t have to pay out huge premiums for any private medical insurance plan – which could literally run into three figures every month. And they’ve the peace of mind which should they need it, expert medical assistance is available immediately.
Pre-Existing Conditions
Limits the ability of the insurance companies to refuse coverage for an employee seeking insurance under the employer’s group health insurance plans. In case of large companies, health insurance can be denied on account of past claims of the employees. However, no individual employee can be rejected based on his claims history. In case of small companies, coverage underneath the health insurance plan cannot be refused on account of pre-existing conditions.
Lower Premium
Group Health Insurance plans carry lower premiums as compared to individual health insurance plans. The premium for insurance depends upon the risk profile. Greater the amount of risk, higher may be the premium on the policy. Since the risk in case of health insurance is shipped among a group of people, the per head risk becomes less. Hence, the premium per person is less in case of such a policy. It might behoove an employee to choose the insurance plan provided by his employer rather than considering individual health insurance plans.
Tax Benefits
The fringe benefit by means of premiums paid by the employer isn’t considered a part of the employee’s taxable compensation. In case of individual health insurance, an individual has to pay the premium from his after-tax salary.
Group Health Insurance
Additional Coverage at a Cheaper Cost
A person can get a number of additional benefits like optical care, mental and dental care in a cheaper cost because of increased purchasing power on account of buying insurance like a group. Most insurance policies do not cover the cost of pregnancy. On requesting this coverage, the premium in case of the individual health insurance policy may become very expensive . Group health insurance allows a person to obtain this benefit in a lower premium.