Group Health Insurance in India

According to WHO, each year close to 55 million Indians are pushed into poverty due to out-of-pocket expenses on healthcare. 17% of Indian households face catastrophic healthcare costs and are barely ever able to recover from the expenses. About 40% of Indians are not covered under the Indian government schemes! Also, they are not financially stable to invest in retail health insurance schemes. It is evident that health insurance is no more a luxury, but a necessity. Corporations across the country recognize the need for health insurance across various social-economic strata.

A recent report titled ‘The State of Employee Benefits 2024’ revealed that group health insurance drives India’s health insurance story. To support this statement here are some simple statistics,

• 1 Crore Indians availed retail health insurance plans in the past 3 years
• as compared to
• 10 Crore Indians who were added to group health insurance during the same tenure

Companies are pushing an employee-centric work environment and focusing on employee retention. One major reason for employee retention is healthcare perks. Knowing the cost of group health insurance per employee is one key factor in designing job offers for employees. This article is a window into how companies calculate group health insurance costs to provide efficient medical support.

Key Takeaways

• About 40% of Indians are not covered under the Indian government schemes!
• 1 Crore Indians availed retail health insurance plans in the past 3 years
• As compared to 10 Crore Indians who were added to group health insurance during the same tenure
• Factors like adequate coverage and company size contribute to the cost of group health insurance

Group Health Insurance Is A Non-Negotiable: IRDAI Mandate

COVID-19 nudged the Government of India to mandate employers provide group health insurance to their employees. IRDAI further provided guidelines ensuring every employee is protected against medical emergencies and is covered against expenses such as OPD care, diagnostics, and more.

This move benefits employers as providing group health insurance to employees helps them retain employees and offers companies tax rebates under section 17 of the Income Tax Act.

Factors Affecting Group Health Insurance Cost Per Employee

To calculate group health insurance the below-mentioned factors are important and affect the cost per employee directly.

Average Cost Of Employer-Provided Group Health Insurance Per Employee In India

Multiple factors govern the cost of group health insurance plans per employee such as:

• Sum insured amount
• Coverage benefits
• OPD care
• Add-ons
• Coverage for pre-existing diseases
• Family cover size, and more

The average group health insurance cost ranges between INR 10,000 to 25,000. While younger employees of an organization may avail of cheaper group health plans, older employees with pre-existing ailments might have to face the upper end of group health premiums.

Wrapping It Up

Group health insurance is essential for the overall well-being of an employee and organizations are paying attention to such details. Employee retention increases manifold when employers take care of their employees and their families. Purchasing a group health plan affects the budgets of corporations and thus it is important to calculate group health insurance cost per employee.

To enquire about group health insurance for your organization, call PolicyX insurance experts today and get the best suggestions.

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