Group health insurance needs a total rejig

Tech companies had hit headlines for offering astronomical pay packages, BMW bikes and tickets for T20 World Cup cricket to woo and retain top talent. The demand for tech experts, like network professionals, saw a sudden spurt as Covid-19 had forced a tectonic shift to work from home.

But how about overhauling the group health package to retain employees? It could bear fruits, especially considering increased health awareness among employees in the wake of the pandemic. Also, most group health insurance policies have been designed to offer basic coverage in terms of the sum insured, and diseases and illnesses covered.

It can be safely said from the past experience of many that group health cover has more often than not proved to be inadequate to the employees and their families, especially in cases of severe and critical illnesses. Employees usually have no say on the kind of benefits they want from health plans. Also, the sum insured and coverage depends on the plan chosen by the employer.

Also, group plans are valid only as long as the employee stays with the company.

A steep rise in medical costs is another reason why redesigning group health policy can be a winning proposition. The rate of price rise in healthcare at present is between 10% and 12%, which could mean healthcare could soon go beyond affordability. On the other hand, HR executives have come across complaints that sharply higher premiums for group health cover are eating into their earnings while the benefits are not in the same proportion.

It is reported in the media that companies in the West are planning more competitive benefits packages to attract talented employees. Health Savings Accounts that help employees pay medical bills while enrolled in cheaper, high deductible plans is one such plan.

Direct Primary Care is another innovation of corporate entities abroad. It allows employees to pay a fixed fee – it can be monthly or quarterly, or annual– to cover primary care and consultations. Direct Primary Care helps in cost-savings and also builds a better relationship between patient and doctor, it is said.

Employees attach a premium to good health facilities. A well-designed health and wellness package can do wonders to keep the morale of employees high. Experts have pointed out mental health services as a case in point. Mental issues related to work pressure can be suitably addressed in time by an in-house wellness package offered to employees.

It is also advised that a healthy workforce should be ensured to reduce the premium burden of the company.

Employees more often than not choose the wrong policy because they have not been briefed well about the differences between options available in the group insurance. Educating employees about their insurance needs is the primary step of organisations as part of overhauling the group insurance plan.