Although common in some other countries, many organisations in Australia don’t realise the benefits of offering corporate health insurance policies to their employees. Included as part of a more comprehensive employee benefits package, employers can select corporate plans based on their needs, budget and business circumstances.
The benefits for both the employee and employer are substantial. Employees don’t have to spend their time researching different policy options, and employers can make their organisation a more attractive place to work for potential new hires.
Corporate health insurance basics
Corporate health policy is a type of insurance plan that organisations establish to meet their objectives and implement for the benefit of their employees. Employers who offer corporate health plans are responsible for searching the market and selecting a policy that fits their employees’ needs and expectations while at the same time staying within their budgetary constraints. Corporate health plans usually require a high participation rate, so employers should be certain that a substantial number of their employees will join if they can see value in the employer’s proposition.
A corporate health insurance plan is typically made available to all full-time, permanent employees; many employers don’t extend benefits to part-time employees. Contractors are considered a separate category, and employers are not required to extend benefits to them even if they work full-time. Some companies, however, find that offering equal benefits to all full-time employees can help create better cohesion and camaraderie amongst their entire workforce.
How a corporate health insurance plan differs from individual plans
The main difference between corporate plans and individual health insurance is that in the latter case, people buy health coverage for themselves (and usually their families) independently of their organisation.
These types of plans require more careful planning on the part of the individual. Without an organisation to do much of the grunt work, employees are the ones who have to research different policy options and make a decision based on their circumstances.
Perhaps the greatest benefit for employees, corporate insurance plans tend to be cheaper than individual plans. That’s because risk insurers offer incentives such as discounting and specialised products, helping to bring overall health care costs down.
Because of the cost savings, employers can offer plans with better coverage options than would otherwise be available. That means employees get better quality insurance when they go the corporate health route, helping them safeguard their long-term health.
Benefits of including health insurance as part of an employee package
The competition for qualified candidates in the current job market is fierce, and companies are constantly trying to find ways to stand out and hire the best talent. Corporate health insurance can give your organisation a major competitive advantage.
Offering health insurance coverage to your employees shows them that you care about the long-term health and wellbeing of them and their families. That makes them feel like a more valued and respected member of your organisation, which can help you both attract and retain key staff.
More than that, employees who report better job satisfaction tend to be more productive, efficient and better team members. Healthy employees also take fewer sick days, so your absenteeism rates decrease and the lifetime contribution of each employee increases.
Implementing corporate health insurance
- Outline your goals: From the very beginning, it’s important to set a series of objectives you hope to achieve with your corporate health insurance policy. Not only will this guide the selection of your plan, it will also help you persuade other, undecided decision makers that a corporate health plan will make a valuable contribution to your organisation.
- Know your people: Understanding the needs, usage, circumstances and even risk factors of your workforce is critical to selecting the right health plan. If your employees are generally healthy and less prone to illness or injury, you will then select a plan that focuses on health and wellbeing maintenance. The average age of your employees will also influence how risk-prone they are and the coverage required.
- Design a plan: Once you’ve made the decision to purchase corporate health insurance, work with your expert consultant to select a plan that contains the right initiatives and coverage options for your workforce’s needs and helps you achieve your long-term goals. It’s important to engage employees in this part of the process to ensure optimal implementation/participation.
- Track your success: It’s not enough to have a plan in place. You also need to make sure you have a system for measuring performance. Your performance measurement plan should identify key areas of your plan and attach metrics to each, helping you ensure you’re getting the outcomes you need.
Getting started with the right partner
Making the decision to purchase corporate health insurance is the first step. Teaming up with the right partner is the next. HICA is Australia’s leading independently-owned health insurance brokerage, and our team is committed to finding the right coverage option for your organisation.
We have almost four decades of experience in the corporate sector, so you can feel confident that our range of expertise will help you make the right decision about the coverage option you choose.
Contact us today for a free, no-obligation consultation and find out more about your options.