A group health insurance is an excellent way to provide health coverage to employees or members of an organisation. However, many people have misconceptions about how it works and what it offers. Many people believe that group insurance is expensive, inflexible, and offers limited coverage.
Today, we will debunk common myths surrounding group insurance policy to give you a clear understanding of its benefits and features.
Myth 1: Group Insurance Policy is Expensive
One of the most widespread myths is that group insurance policies are expensive. In reality, group health insurance policies are cost-effective as the risk is spread across multiple members. This reduces the individual premium cost, which makes it more affordable than individual health insurance policies.
Additionally, employers often contribute towards the premium, which further lowers the cost for employees. Group health insurance policies also offer tax benefits. It is a smart financial choice for both employers and employees.
Did You Know? Employers who offer a group health insurance policy often enjoy higher employee retention and satisfaction.
Myth 2: Group Insurance Policy Covers Only Hospitalisation Costs
Many people believe that group health insurance policies only cover hospitalization expenses. This is far from the truth. Modern group insurance policies often include outpatient treatments, preventive health check-ups, maternity benefits, and even wellness programs. Some group health plans also offer coverage for mental health consultation services.
Group policies also offer holistic health protection, which ensures members get comprehensive medical support beyond just hospital admissions.
Fact Check: Many group health insurance plans also cover pre- and post-hospitalization expenses.
Myth 3: Group Health Insurance Lacks Flexibility
Another common misconception is that group health insurance policies are rigid and lack customization. In reality, many insurance providers offer customization options for group health plans. Employers can choose different coverage options, add-on benefits, and even co-pay structures according to the needs of their employees.
Employees can also benefit from family floater options, which extend coverage to family members. It adds flexibility and value to employees.
Quick Tip: Ask your employer if your group health plan allows for custom add-ons like dental or vision coverage.
Myth 4: Group Health Insurance Does Not Cover Pre-existing Conditions
Many people believe that group health policies do not cover pre-existing conditions. However, group health insurance from top insurers like TATA AIG provides coverage for pre-existing illnesses from day one. This is a major advantage over individual health insurance plans, which usually have long waiting periods for pre-existing conditions.
A group insurance policy aims to provide immediate and necessary care for members and ensures they are well protected from the start.
Good to Know: Group policies mostly waive off the waiting period to make treatments faster and easier.
Myth 5: Group Insurance Policy Claims Process is Complicated
The general belief is that group health insurance claims are complex and time-consuming. The truth is quite the opposite; group health insurance policies have a simplified claim process. The insurers have tie-ups with network hospitals, which enable cashless hospitalization and speedy claim settlements.
Moreover, there are support teams available to assist policyholders with submitting their claims.
Pro Tip: Always keep your policy number and health card handy for quicker claims.
Myth 6: It Does Not Provide Comprehensive Coverage
Some people assume that a group insurance policy only provides basic coverage. But a majority of group insurance policies offer extensive medical treatments. It covers maternity benefits, surgeries, critical illness, and emergency treatment. There are many policies that include wellness programs and preventive medical checkups to keep the members healthy.
Employers usually negotiate with insurers to add other coverage options that are suitable for their employees’ specific requirements.
Insight: Many group policies also offer annual health check-ups as part of the plan.
Myth 7: Only Large Organisations Can Offer Group Health Insurance
It is often assumed that only large companies can provide group health insurance. This is not true. Small and medium enterprises (SMEs) can also offer group health policies to their employees. Many insurers offer tailored group health plans for smaller organizations, which ensures their employees are well covered.
Government initiatives and regulatory changes have also made it easier for smaller companies to adopt group health insurance plans.
Good News: Even start-ups can now offer group health insurance to their employees.
Conclusion
Group health insurance policies are a great and cost-effective method for providing medical coverage for employees or members of an organization. Some of the myths about group health insurance policies are founded on outdated facts or misconceptions. Knowing what the actual benefits and characteristics of a group insurance policy are can assist in making a better choice.
If you are considering a group insurance policy for your organization, it is important to consult with a reputable insurance provider to explore all the available options. Investing in health insurance by employers is not just a benefit for employees—it is a commitment to their well-being.
Do not let myths stop you from choosing the right coverage for your team.
Also read: 6 Helpful Tips for Locating A Reliable Health Insurance Broker
