Group health insurance guide for startups

A Beginner’s Guide to Group Health Insurance for Start-ups

A Group Health Insurance is a type of health insurance plan for a group of people who work under the same organization. This equally offers valuable benefits to the employees as they don’t have to pay the premium. The employer will pay the premium. The group health insurance is extended to the family members of the employees, which means now family members can also avail of the benefits.

However, the price for the same is comparatively a lot lesser than individual health insurance plans. Also, it benefits employers in tax reductions, making it beneficial for both the employer and employee.

Benefits of Group Insurance

In today’s world, many companies and businesses provide group health insurance as a part of compensation. Below are a few advantages and benefits of health insurance for employers and employees.

  • For the advantage of employers, the premium paid in group insurance is lower than the premium paid in an individual policy of the member. These plans reduce the liability of the insurance provider as the risk is spread across all members of the group.
  • As the employer pays premiums, group insurance offers an easy and simple way to cover all employees with different designations.
  • Group insurance helps increase the loyalty of employees to the employer. Even these plans help employers provide a motivated and friendly work environment and a positive workplace.
  • Most of the group insurance plans cover family members. Like it covers spouses, children, and parents of the group members.
  • Group members can claim tax benefits on the premium paid on group insurance while filing their income tax returns. Employers can also claim tax benefits for paying premiums on insurance plans for their employees.
  • Some of the group insurance plans can be converted into individual plans when a member leaves a group. In such a case, the member has to pay a conversion fee.

Step-by-step guide for startups

From the above discussion, it is clear how group health insurance is beneficial for both employers and employees. So, let us go through the proper guide to avail group health insurance for the startups.

Firstly, make a list of the top five companies that offer group health insurance for the companies—for example, Kotak, ICICI Lombard, HDFC Agro, Care, Aditya Birla, etc. You can select the companies on the basis of the number of network hospitals, claim ratio, when they are founded, claim settlement, facilities they are providing, etc.

Then you have to search for a leading employee healthcare platform for small businesses, which includes group health insurance, discounted telemedicine, teleconsultation, etc. Further selection criteria can be based on the insurance company’s previous experience and expertise, the number of network hospitals, premium payment procedures, their clients, disease coverages, additional benefits offered, how much premium a company needs to pay, etc.

New-age digital health insurance companies have revolutionized health insurance to offer a hassle-free and paperless experience.

After all this research, select two or three platforms for the demo meeting. Understand and match the requirements with yours and then finalize one of them.

Now the real work starts. The selected platform company will provide the sheet where you have to enter employee information like employee ID, name, DOB, phone number, family, and nominee details. For collecting the data of employees, prepare a google form and send it to the employees.

As you receive all the data, fill in the sheet provided by the platform company properly and send it back. Then they will send a final proposal with information on premiums, number of employees, and facilities they are providing.

Go through the proposal thoroughly and complete the payment as a final sign of acceptance. If you have any further queries, you can sort them out with your health insurance provider before signing the agreement. Once payment is made, your insurance company will onboard the employees within a few days.

Last but not least, they will explain to the employees how to claim their medical benefits easily in need.

This is how a good group health insurance can help a startup retain its talented employees and attract new talent. Group insurance offers an intelligent and practical choice for providing coverage for all group members under one plan. Such a plan benefits both the group and its individual members in a number of ways.

Top 10 companies that provide group health insurance to startups are

  1. Onsurity
  2. Plum
  3. Policy Bazaar
  4. Active Health
  5. Acko
  6. Healthysure
  7. Plancover
  8. RazorpayX
  9. Securenow
  10.  Pazcare

From all of the above-listed healthcare platforms, you have to select only one best suited for your company. As a startup, we relied on good service with good network hospitals. However, few of the platforms provide many other services in addition to health insurance. Still, it is advised to prioritize experience and expertise in insurance work while choosing the right insurance company for you.

It’s recommended to choose a company that provides

  1. A good number of network hospitals
  2. Covers maximum diseases
  3. Monthly payment system
  4. Self-purchase of parents, in-laws, and siblings is allowed
  5. Regular and ICU room rent sub-limit 2% and 5%
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August 18, 2022
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