Women In Business

The ins and outs of corporate health insurance

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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 it?

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

What types of policies are available?

The types of policies available for corporate health insurance 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 about corporate health insurance?

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

A corporate health insurance 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, corporate health insurance isn’t that expensive at all. In terms of how complicated a corporate health 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 corporate 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.

Overall, corporate health 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 [email protected]

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