Group health insurances are the type of insurance offered to their employees by an employer. And in this time of Covid pandemic, when the hospitals are full of patients, it is one of the best life-saving methods to save the deep savings of a common employee. But as every coin has two faces, it has too. Below are its pros as well as cons: -
Pros
1- No Waiting Period
The waiting period to get a genuine claim is very short. So one can claim this group insurance as soon as they reach the hospital's door. But some caveats are needed to be taken care of.
2- Cover for Family Members
The group insurance gives the employees the option to opt for their parents or spouse for the insurance. Hence the employees can work freely without any fear of family health.
3- Maternity and New-born Baby Coverage
These types of group insurance cover the employees and their immediate family members and their newborn children. The insurance companies bear all the hospitalization charges.
4- Free Coverage
Since the employer is providing the group insurance, the employees get it as a freebie, so they don't have to pay even a single penny for the premium of the insurance.
Cons
1- Claims Can Be Troubling
Suppose you got ill and hospitalized, and then after a week or so, you were released from the hospital now. It will not be an easy task when you try to claim your health insurance. It will take multiple signatures from your firm, the data will be cross-checked, and hospitals will come into play. Hence overall, the process of claim can be troubling.
2- No Tax Benefit
Group health insurance is also known because they do not give tax benefits on your taxable income. Whenever a part of your salary is deducted for the premium of the group health insurance, it is not counted in the tax benefits, whereas if you had bought it personally, it would have given you tax benefits. So it is also a matter of worry.
3- Employer-dependent Cover
As the group health insurance is only given to you as long as you give your services to your firm. So you are employer dependent on the insurance. They can strike off your insurance if you do not work for them. This also makes you feel subordinate to your boss.
4- Fear of Discontinuation
The group health insurance is not awarded to you. Personally, it is awarded to you as an employee. So as long as you are continuing your job, you are eligible to avail of its benefits, but it discontinues immediately as soon as you leave the job.
So these are the most important pros and cons that one needs to remember while going for group health insurance.
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Dr Santosh Guptha, CEO – MEDESUN is a dynamic leader in Healthcare Information Management, an expert in the field of coding analysis, EM auditing, and ICD-10-CM, ICD-10-AM Coding with a career span of more than a decade. He was instrumental in developing various ICD-10 coding tools, guides and has authored various ICD-10 training programs, blockchain technology in healthcare etc. Dr.Santosh Guptha has extensive knowledge in all areas of HIPAA, privacy and security, and the application of HIPAA requirements in physician’s offices and facilities settings.