How Many Employees Do You Need For Group Health Insurance?

Two companies in the same industry. One believes in employee wellness 👨‍💼while the other is driven by profitability 💵. Which company, do you think, would be more profitable in the long run?

The first one, of course! It’s rather a no-brainer, isn’t it?

Employee wellness has become an important part of employee compensation in the modern age. Why? It’s because millennials look beyond the pay packet when picking the right organisation for their skills. That is why companies go that extra mile to motivate and retain their employees. A group mediclaim policy is one such step in employee wellness.

The importance of a group mediclaim policy for employees

Employees are the lifeblood of an organisation. Without them, the company cannot run efficiently. While you might offer your employees the most competitive package, a group health plan goes that extra mile in ensuring their financial wellness🤌. It provides coverage against medical emergencies 🚑 and safeguards their savings.

The importance of a group health plan springs from the common concern that your employees face. While illnesses and diseases are becoming rampant, medical costs are also rising. In such cases, if they or any of their family members suffer from any medical contingency, the hospital bills might cause them a considerable financial loss.

A group, health insurance scheme helps your employees avoid this loss. The plan covers the medical bills 💶and gives them financial respite. Group plans are cost-effective, too, as the premiums are low compared to the coverage offered. Moreover, the compensation you pay for the policy also earns you tax benefits 🧾. Alternatively, if your employees pay the premium, they can enjoy tax benefits on their income.

One plan, multiple benefits!

Group health insurance – the concept

Group mediclaim insurance is a health insurance policy that covers individuals under the same plan. A single policy is issued, called the Master Policy, and it provides coverage ☂️to the whole group.

A group, health insurance policy, is available for recognised groups, employer-employee groups being one of them. So, if you are an employer, you can invest in a group health insurance policy for your employees.

The eligibility parameters ✅ for group mediclaim insurance

To buy a group health plan, there are two main eligibility requirements –

  1. The group should not be formed only for availing of the group insurance policy
  2. The group should have a minimum number of members

While the first requirement is fulfilled in an employer-employee group, it is the second parameter that might be a concern. You cannot buy the employee health insurance policy for one or two employees. You need a minimum employee strength. What exactly is the required strength?🤔

The minimum employee count criterion

There is no fixed rule when it comes to the minimum number of employees for the group policy. The minimum number depends on the insurance company. Every insurer has a different eligibility parameter in its group health plan. Some companies require a minimum employee strength of 10, while others might need a count of 25 or above.

However, Plum Insurance allows group mediclaim policies with only seven members. So, if you are looking for employee insurance for your start-up or small business 👔, Plum Insurance can offer customised and comprehensive options.

The family 👨‍👨‍👧‍👦 angle

Group health insurance plans require a minimum number of members to be insured under the policy. The term ‘members’ includes employees and their families as well. So, if you extend the coverage to your employees’ family members, like spouses, kids, and/or parents, the number of insured members increases. This aids in meeting the minimum member count, and you can buy the group health insurance policy.

For example, say your company has a total employee strength of 6. You are eyeing a group medical policy that requires a minimum member count of 10. In such cases, if you extend the coverage to your employees’ spouses, the members would double in the count. As such, you would successfully meet the minimum count criterion and buy the policy you want. Simple, isn’t it?

Buying the right group health insurance plan 🔎

There are different options of group insurance schemes available in the market. After all, there are more than a dozen health insurers!

So, when buying the policy, you need to shop around. Compare the different plans based on the following factors 👉

  • The inbuilt coverage benefits
  • The optional coverage features
  • The claim settlement process and the claim settlement ratio of the insurance company
  • The premium charges v/s the coverage offered.
  • And, of course, the minimum number of members required for coverage

If you have offers from multiple insurers and qualify on the minimum member count, compare the plans based on the other parameters listed above. Make sure to choose a policy that offers a comprehensive scope of protection at affordable premiums 💰.

So, opt for the most suitable group mediclaim policy and give your employees financial peace of mind. Do check the policy document for the minimum number of members required, though. After all, it is one of the most basic eligibility criteria that you cannot overlook!