Corporate health insurance should avoid five major misunderstandings

by huangsuisi
November 16, 2021

In order to pass on the medical expenses risks of employees, companies purchase group health insurance from insurance companies. This is the best way to protect employees from sickness or physical injury.

Selecting the right group insurance requires an in-depth analysis of the employees’ medical insurance needs and viewing a large amount of information. When choosing a group health insurance plan, some mistakes should be avoided.

1. Choose the cheapest option.

Group health insurance is expensive. Therefore, it is understandable to choose a cheaper plan in order to save money. However, you must remember that choosing a cheaper plan may not be the best way to save money, but in the end you will pay more for it.

In fact, in addition to cost, there are other considerations when choosing an insurance plan. This may include the insurance company's service level, compensation speed, service network, etc. If you choose a lower plan, you can save insurance premiums, but when the insurance company refuses to claim, does not answer your questions, or delays the claim process, additional investment and funds may be added.

Some cheaper plans may not include the medical benefits that employees often request. In the long run, this may incur some additional costs.

2. Choose a local plan instead of an international plan.

Local plans and international plans provide protection for employees. However, the guarantee content varies greatly. Depending on your situation in China, Singapore or Hong Kong, the local plan provides different protections.

The main difference is that international programs tend to provide greater coverage and higher limits. This means they will better pay for high-end medical facilities in your country of residence.

The second common corporate health insurance mistake is when employees choose a local insurance plan when traveling abroad. If an employee falls ill abroad, his medical compensation does not include the compensation in the local medical insurance, and he must pay additional expenses. In this case, the best solution is to insure local insurance for employees who do not travel. Employees who travel frequently can join the international program. Or, employees who travel frequently can purchase annual travel insurance cif.

3. Employees are not allowed to participate in the plan selection process.

Another mistake of another health insurance is that employees do not choose to participate in the group plan. In the selection process, prevent them from participating in the selection, so that the guarantee content in the plan fully meets their needs. If your employees do not use the insurance you provide, you may not get a return on investment.

If employees participate in the selection process, they can better understand the company’s plans for them and save some time to explain safety issues to them.

4. It is considered that the pre-guarantee disease has been covered.

Pre-protected illnesses are illnesses that existed before a person’s health benefits took effect.

Generally speaking, when we talk about medical group plans, we are talking about historical issues in the past. This means that their medical insurance will cover pre-insurance illnesses. But this option is only suitable for team projects with more than 10.20 employees or more.

A detailed review of all the terms and conditions of the group plan is very important. To protect the previous situation of employees, please consult the insurance company to understand the terms before making a plan.

5. I don’t understand the eligibility requirements for insurance.

Before making a group plan, it is important to determine who will join the plan.

Most group plans require all employees at the company level to join the plan. For example, insurance companies require all middle-level employees to participate in the plan.

Proposed different insurance levels based on job responsibilities. For example, senior management participates in international plans, and lower-level employees participate in local insurance. If your employee gets a promotion, he will enter a new team project.