Employee health insurance is a type of insurance provided to employees as part of a benefits package. It is designed to cover the medical costs of the employees and sometimes even their families. This can include doctor’s appointments, dental checkups, and sometimes even physiotherapy.
58% of companies offer health benefits to their employees, making this the most common perk (TeamStage). Health benefits can attract and retain top talent and provide a way for employees to access private healthcare without having to pay out-of-pocket. This article aims to provide some ideas of things that employers should consider when it comes to employee health insurance.
Excess Fees
One huge thing to consider is whether or not your employees will have to pay any extra fees to access their health insurance benefits. These extra fees are known as ‘excesses’ or ‘deductibles’, which are out-of-pocket charges that an employee must pay before their insurance coverage kicks in. Read more here.
For example, if an employee has a £100 deductible and their insurance covers £50 for a medical procedure, the employee would need to pay the first £100 of the procedure before the insurance company pays the remaining £50.
Although excess fees reduce the overall cost of insurance premiums for you, they can still be a huge barrier for employees who cannot cover them upfront. Excess fees can have a negative impact on your employee satisfaction, so this is something to consider before you select your insurance plan and provider.
Family Coverage
Another thing to consider is whether or not you will allow your employees to include their family members in their health insurance plan. Some insurance plans will allow your employees to cover the medical costs of their family members as well as themselves. This can include their spouses, aging parents, and children.
This can relieve employees of a lot of financial pressure, especially if they are responsible for the wellbeing of multiple dependents. Health insurance can give them peace of mind, and show them that you care about their overall quality of life. This can be a powerful motivator when prospective employees are weighing up whether or not to apply to a position within your company.
Motivation
Employee health insurance has more advantages than just practical. It can also be a powerful tool for boosting motivation among your employees.
One of the biggest concerns that most employees suffer from is the cost of medical treatment. By covering these costs, you allow your employees peace of mind. This financial security will give your employees one less thing to worry about. This is a great way to show them that their contributions to your company are valued.
Healthier employees are also more productive and have fewer absences. A reduction in anxiety can also lead to better mental health and therefore more productive work. This means that helping your employees with their medical costs will come back around and end up benefiting your business.
Coverage Details
Finally, make sure that you understand exactly what is included in your employee health insurance plan, including fees, copays, and covered services. Be clear about what exactly is and is not covered, and communicate this with your employees.
For example, your plan may include copays. A copay is a fixed amount that an employee must pay in order to access a medical service, such as a dental checkup or prescription medication. It is typically paid at the time of service and is in addition to any deductibles or premiums that the employee may be responsible for.
It’s also important to be clear on what services are covered by the employee health insurance plan. Understanding what is and is not covered can help employees make informed decisions about their healthcare and avoid any unexpected costs.
