What is Group Health Insurance


There are different ways that an employer seeks to attract employees and keep the working staff in good humour. Now the health insurance of the employees is of paramount concern to them and companies seek to amalgamate the job benefits with health insurance for all the employees.

Group health insurance is such a plan where the company provides health insurance benefits to the employees in return for service and is one of the sops or benefits that one should actively seek while looking for employment avenues.

In the group health insurance schemes, the employees are covered for their health insurance benefits whereby the company pays whole of the premiums or part and the employee can sometime choose the type of group health insurance.

Group health insurance can be taken by any company with two to fifty employees and gives a spectrum of health coverage including cashless hospitalisation and coverage of medical expenses.

Sometime families of employees are covered in the group health insurance scheme. The employee may sometime have to pay premiums on his family members while at other times company will insure both the employee and his family.

Some forms of group health insurance systems are the

HMO-health maintenance organisation.

PPO-preferred provider organisation

POS-point of service.

In HMO the group health insurance scheme will specify the health facilities where this scheme can be availed, as there will be a list of medical providers where this service is applicable.

In PPO, the employee can seek any specialist without taking consent of any referral.

The POS is another variation with a combination of these.

Now a company, which offer group health insurance, will no doubt be more popular or lucrative for a new employee and is a great way of attracting new talent and showing care and concern for the employees.

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