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Group health insurance is a type of coverage provided to a group of individuals and is often purchased by organizations to offer to their employees. As a business owner, offering health insurance is one of the benefits that is highly valued by employees and most job seekers and it also demonstrates a commitment to the health and well-being of employees. It is important for you to understand the benefits of group health insurance and how to select the right plan for your company.
How Important Is Group Health Insurance for Employees?
In Malaysia, group health insurance plans are usually available for groups comprising of at least three members and are usually acquired by companies or organizations, who then extend coverage to their employees. These insurance plans cannot be purchased by individuals directly, as they are exclusively designed for groups.
Even though some employees might have their own medical insurance or medical card, offering health insurance as a benefit can still be beneficial for both the employee and the employer. What are the advantages of taking group plans? Employees can access healthcare services and at the same time financial protection in case of medical emergencies. Here are five group health benefits of group health insurance that employees should know:
Comprehensive Coverage
Group health insurance is a valuable benefit that companies can offer to their employees. These insurance policies are designed to provide coverage for medical expenses and treatments that may arise from accidents, illnesses, or other medical conditions. The scope of coverage under group health insurance policies typically includes both inpatient and outpatient treatments, including surgeries, consultations, and diagnostic tests.
Cost Savings
Providing group insurance plans for individuals within an organization can result in cost savings for employees as they can share the insurance premiums among the group. This form of insurance provides better coverage at a lower cost than individual health insurance plans.
Pre-existing Condition Coverage
Malaysian regulations mandate that group health insurance plans must cover pre-existing medical conditions. This guarantees that employees with pre-existing health issues can access medical coverage without the concern of being rejected or paying higher premium.
No Waiting Period
Employees who enroll in group health insurance plans can access healthcare services without delay, as these plans typically do not have a waiting period for coverage. This means that employees can immediately access healthcare services as soon as they enroll in the plan, without any delays.
Do note that some group health insurance plans may have a waiting period before coverage begins, while others may have no waiting period. Some plans may also offer additional benefits such as dental or vision coverage, wellness programs, or maternity benefits.
Family Coverage
Group health insurance plans in Malaysia commonly include family coverage, allowing employees to extend medical coverage to their spouse and children. This provides comprehensive financial protection and peace of mind for the entire family.
Group Health Insurance Cost, How to Choose the Right Group Health Insurance Plan for Your Business?
Choosing the best group health insurance for your company in Malaysia requires careful consideration of several factors. Here are some of the important steps that you should consider taking:
1. Determine Your Company’s Budget
The first step is to evaluate your company’s budget and employees’ healthcare needs to determine the type of coverage that will work best. Group health insurance plans for small businesses in Malaysia typically offer basic to comprehensive coverage, and it is essential to choose a plan that provides adequate coverage at an affordable cost.
The cost of group health insurance in Malaysia can vary depending on several factors, such as the size of the group, the level of coverage provided, and the age and health status of the employees. Generally, group health insurance plans for small businesses in Malaysia can range from a few hundred ringgit per employee per year to several thousand ringgit per employee per year for more comprehensive coverage.
2. Choose a Licensed Insurance Provider
It is recommended that you consult with a licensed insurance provider or insurance agent in Malaysia to discuss your specific situation and options for offering group health insurance coverage to your employees. They can help you understand the different types of plans available and assist you in selecting a plan that best fits your needs and budget.
You have to choose to work with a licensed insurance provider in Malaysia to provide group health insurance to your employees. You can approach insurance providers directly or work with an insurance agent to help you select the right plan for your business. In Malaysia, there are several insurance companies that offer group health insurance plans for businesses, such as:
- Allianz Malaysia;
- AIA Malaysia;
- Prudential Assurance Malaysia;
- Great Eastern Life Assurance;
- Zurich Malaysia.
3. Choose a Plan
It’s crucial to consider the features of a health insurance group plan when choosing one for your small business in Malaysia. Waiting periods, additional benefits, and coverage of necessary medical treatments should all be taken into account to ensure your employees are fully covered. After selecting a plan and fulfilling the requirements, employees can be enrolled during open enrollment or when they’re first hired.
Malaysia offers group health plan examples such as medical card plans, hospitalisation and surgical plans, and critical illness plans, each with different features to meet various employee needs. Because risk is spread among insured persons, group health insurance plans are generally more affordable than traditional individual health insurance plans, with lower premiums due to less risk assumed by insurers.
In conclusion, group health insurance plans in Malaysia provide an affordable and practical way for companies and organizations to offer comprehensive health coverage to their employees. By spreading the risk among a group of people, group health insurance plans can provide coverage at a lower cost than individual health insurance plans.
