Boss Lady

Corporate health insurance: what you need to know

on


Corporate health insurance can offer a range of benefits for the both the employer and the employee. As an employer, you’ll likely see an improvement in staff productivity and morale. As an employee, joining a corporate health policy will give you a lower price on your health insurance.

What is corporate health insurance?

Corporate health insurance is a policy taken out to benefit the employees of a company. Employers can choose to fully fund or partially fund the policy. Employers can also choose to make the health cover voluntary, meaning that the the company finds a suitable policy and if an employee chooses to join, they pay for it on their own. 

Is everybody eligible for it?

You will be eligible for the insurance if your company offers it. Even if you work for a small business, there’s a chance that it may still be offered. It is suitable for businesses of any size. Check to see if your company offers it, and if it doesn’t, try recommending it so that both you and your employer can reap the benefits.

What types of corporate health insurance policies are available?

The types of policies available are the same as those offered to regular consumers. These include hospital only cover, extras only cover and combined hospital and extras insurance.

The level of cover provided will depend on the policy chosen by your employer. If the policy is partially funded or voluntary, the benefits you receive will also depend on the amount you pay in premiums. 

What’s the difference between an open and a restricted health fund?

An open health fund is available to everybody. Many of the popular health funds that offer policies to regular consumers also offer corporate health insurance policies. Other than these, GU Health is the only insurer in Australia that specifically offers corporate health insurance.

Restricted health funds differ from open health funds in that only people from specific groups, industries or organisations are eligible to apply for a membership. For instance, CBHS Health Fund is only open to employees, contractors and franchisees of the Commonwealth Bank of Australia Group, including any immediate family members.

What are the common misconceptions?

There are many misconceptions about corporate health insurance that simply aren’t true. As mentioned before, both large and small businesses can offer it. This is because corporate health insurance isn’t as expensive or complicated as it seems.

A policy can be tailored to the available budget and the number of employees. Also, once you consider the costs of having to replace a lost employee, the insurance isn’t that expensive at all. In terms of how complicated a policy is to set up, all the administration work can be easily handled through a broker.

Some companies also believe that their employees wouldn’t appreciate a health insurance policy. However, it’s clear that employee benefit schemes are extremely attractive. Satisfied employees will be more productive and will have a higher morale.

Corporate health insurance overview

The individual modules of the company health insurance are mostly modular, based on the so-called module tariffs of the private supplementary health insurance. This offers the respective company the possibility of adapting the various ranges of services to the company, its special framework conditions and the specific needs of the employees. Corporate health insurance providers usually provide the following products:

  • Supplementary dental insurance
  • Additional tariffs for inpatient and outpatient areas
  • Extension of daily sickness allowance insurance
  • Assumption of costs for preventive examinations
  • Services at the naturopath
  • Visual aids
  • International travel health insurance
  • Long-term care
  • Emergency assistance
  • Short-term psychological counseling for staff and relatives
  • A few insurers offer interim management in the event of a management failure (especially for managing directors and department heads): reintegration measures, risk prevention

Protection of the family

With some providers, family members, ie spouses and children up to 25 years of age, can also be insured. However, this is only possible with a normal health check and with self-financing of the contribution. Here, too, the insurers guarantee immediate protection without waiting times in the event of a claim.

Advantages of corporate health insurance: EMPLOYER

Employee acquisition, retention and motivation
Strengthening social skills
Image enhancement of the company
Increase in competitiveness
Deductibility as a business expense
Reduction of non-wage labor costs
Tip : By implementing such a model, the employer can not only strengthen its reputation internally , but also secure external advantages in the fight for qualified employees and present itself as an interesting employer.

Advantages of corporate health insurance: EMPLOYEE

discounted contributions
immediate protection without waiting
shortened or no health check
Admission guarantee
Improving job satisfaction
Family coverage
Tip : In most cases, additional insurance is no longer necessary. Before terminating the old contract, however, the insured person should definitely check the scope of benefits of the corporate health insurance in order to avoid possible gaps in benefits .

Overall, the insurance is a relatively simple concept that can offer great benefits for both the company and its employees. If you’re an employee, check to see if your company offers a corporate health fund, and if not, try recommending it to your employer if you’re interested in joining one.

About Bessie Hassan

Bessie Hassan is the Australian Head of PR and Money Expert at Australia’s largest financial comparison site, finder.com.au. She is passionate about helping people find better deals and save money, and regularly blogs on the topics of money and finance. If you have any questions for Bessie, please feel free to email her at bessie@finder.com.au

Recommended for you