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How Group Health Insurance (GMC) Plans Help Small Businesses?

Team AckoJan 17, 2024

The market for Small and Medium Enterprises (SMEs) is competitive, especially in a developing country like India. It is crucial to stay relevant in the market to attract and retain talent. The biggest strength of any small business is its human talent. While large companies are able to offer incentives in the form of Group Health Insurance for their employees, small businesses are slowly adapting to the fact that health insurance for employees has its benefits. Read on to learn how group health insurance plans help small businesses and how it contributes to the growth of small enterprises.

Contents

Benefits of Group Health Insurance Plan for Small Businesses:
How Group Health Insurance Can Benefit SMEs (Small and Medium Enterprises)?
Direct Benefits Your Employees Can Get with Group Health Insurance
Questions Business Owners Must Ask While Buying Group Health Plans
Conclusion
Frequently Asked Questions

Benefits of Group Health Insurance Plan for Small Businesses:

Group health scheme for small businesses contributes to the growth of the company as well as help motivate employees to perform to their best. Here is how small business health insurance is helpful to small business owners:

Create a Sense of Trust and Loyalty

Your company is as good as the team you build; hence, it is essential to recruit and retain valuable employees who will remain loyal to the organization. Compensation is an important factor; however, there are other factors that are crucial to the success of your team. The office culture and benefits to your team members are extremely important in today’s competitive market.

Protect Employees from Unplanned Expenses

Health insurance for employees acts as a security measure in case of planned or unplanned hospitalization. As an employer, providing the group health insurance, also known as group mediclaim policy, helps motivate the employee to bring out their best performances. Whether your business has an employee strength of 10 or more, you can get a group health insurance scheme to create an environment that motivates employees and protects them from unforeseen medical emergencies.

Get Tax Benefits

Apart from increasing the confidence and motivation level of employees, employee health insurance also helps you take advantage of tax benefits for your small business. The employee health scheme offers the opportunity to avail tax breaks while you make employees financially secure in case of health issues.

What is Group Health Insurance Cover?

Group Health Insurance Cover is a group insurance scheme that provides coverage for a group of employees towards healthcare costs arising due to planned or unplanned hospitalization. Group health insurance plan can be availed by small businesses, startups, corporates and large companies.

New-age group insurance policy offered by digital insurance companies, such as ACKO, focuses on primary and preventive healthcare as well as the wellness of the employee. Apart from the basic hospitalization coverage, employees have access to the Out Patient Department (OPD) services, teleconsultations, fitness and rewards, and health checkups along with a paperless experience.

Also, read: Who is Eligible for Group Health Insurance?

How Group Health Insurance Can Benefit SMEs (Small and Medium Enterprises)?

Small and Medium Enterprises are slowly redefining the market with innovative products and services. For a small business that is looking to scale its business to the next level, it has to take care of its employees, who form the backbone of the organization. Here are the benefits of Group Medical Coverage (GMC) for your company:

Holistic Employee Care

By providing group medical coverage that demonstrates care and compassion to employees, small businesses attract and retain the best talent in the industry. When a small business protects its employees’ health, the result is beyond money.

Embracing New-Age Technologies

The new workforce is looking for quick and hassle-free access to their employee health scheme. Digital insurance companies are redefining how employees can utilize the group health plan through mobile apps that enable employees to raise claims easily and quickly.

Lower Hiring Costs

Small businesses that offer group health insurance typically recruit and retain talent, thereby, reducing the cost to hire new employees, and it also improves productivity.

Scaling Your Small Business

A group health insurance plan for your employees is a great opportunity to scale your business to attract and retain talent. For SMEs looking to take the next step in expanding their business, GMC can be a motivator for employees as well as new recruits.

Tax Breaks

Group health insurance for small businesses also come with the benefit of tax breaks. By offering the employee insurance scheme, you are not just financially securing your employees in case of health issues, you can also take advantage of the tax rebates.

Direct Benefits Your Employees Can Get with Group Health Insurance

By providing health insurance to your employees and their families, they can benefit from the following:

Pre-existing conditions/illnesses are covered from day one.
Medical checkups are not required to be covered under the GMC.
Coverage from day one.
Maternity coverage for the employee and their spouse.
Dependents such as a spouse, children and/or parents/parents-in-law are covered from day one.
Costs lesser than a personal health insurance plan.
Health insurance coverage from day one of employment.
Access to primary healthcare and wellness programs.
Access to a wide network of hospitals.
Option to include group health insurance add-on covers to enhance the basic plan.
Access to services through a mobile app or website.

Questions Business Owners Must Ask While Buying Group Health Plans

It is important to understand and learn about group health insurance plans for your small business before you decide on the right plan. Here are questions that you need to make an informed choice, Similarly, if considering individual health insurance for business owners, you should ask similar questions to ensure it meets your personal health coverage needs.

What is the budget for insuring your employees with a health insurance plan?
What are the benefits of the plan and do they fulfil my requirements?
Who will plan the type of group health insurance for the company? Will it be the business owner, family or employees?
Should the group health insurance cost be sponsored by me or split between me and employees?
Is the employee health insurance coverage requirement different from a personal health insurance plan?
How much money can the company afford to provide GMC for its employees?

Conclusion

For small businesses looking to expand their business, Group Health Insurance Policy is an excellent opportunity to protect their workforce and help motivate them, especially during medical emergencies. New-age digital insurance companies are striving to provide better access to healthcare with innovative products and services. One can have access to primary care, preventive healthcare and wellness programs to keep them fit and healthy. Ensure that you understand the benefits of the plan and if it suits your requirement before you can opt for the right plan for your company.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.

Frequently Asked Questions

A group health scheme for your small business is an important step to scale your business. Here are the frequently asked questions about the group health insurance plan that could help you make the right decision:

FAQs

1. How can insurance providers help in the growth of small businesses in India?

The health of the workforce of a small business is crucial, especially when the company is looking to grow in the market. By providing a group health scheme for the workforce, small businesses, startups and other companies of similar size can recruit and retain talents. A talented workforce contributes to the growth of the company. Hence, insurance companies are considered as factors that help small businesses to scale to the next level.

2. How does group health insurance lower insurance costs?

Group health insurance typically has more people participating in the plan; hence, group plans are affordable compared to individual plans. Also, you have the option to pay the premium monthly/quarterly/annually, making it easy and flexible to pay the insurance cost.

3. What is a group plan under a health insurance policy?

A group plan under the health insurance policy provides coverage to all members in a single health insurance policy. It covers the group members and their dependent family members (spouse, dependent parents and children).

4. What is the ideal group health insurance plan for small businesses?

The ideal health insurance plan for small businesses should provide wider coverage at a lower premium. Additionally, the plan should also suit your needs and the budget. Hence, a small business should look at its needs before purchasing a health insurance plan for its employees.

5. What is the cost of health insurance for small businesses?

The cost of group health insurance for small businesses varies from one policy to another. There are different parameters before the premium is fixed for the health insurance plan. These parameters include the age of the people in the group, location of your business, preference about out-of-pocket expenses and other exclusive benefits based on your requirements.