In business, the bottom line is everything.
Each investment you make needs to be carefully weighed to ensure it's in line with your budget, and that it will deliver on your objectives. The same philosophy should apply to investing in corporate health insurance.
Offering a company plan to your staff is a fantastic job perk that can boost morale, increase productivity and help you counter absenteeism. However, not all policies are created equal, meaning you need to do some serious research to get the right outcomes.
In this article we'll provide some actionable tips for finding the best corporate health insurance in Australia, so your business can maximise the return on investment.
1. Shop around
There are over 35 private health insurance funds in our country, so it's important not to simply select the first one you come across. This means shopping around.
Ultimately, the plan will aim to benefit your staff, so achieving ROI means providing them with value at a reasonable price for the business.
Ultimately, the plan will aim to benefit your staff, so achieving ROI involves providing them with value at a reasonable cost to the business. Because of this, it's a good idea to engage with your staff to establish what they'd ideally want from corporate health insurance. For example, are they primarily interested in hospital cover, extras, or both? As with private health insurance, your corporate policy can focus on either or both of these.
Once you've gathered this information, you can start examining what's on offer from different funds and weigh up their pros and cons (we'll look at some bonuses and incentives in the next section).
You also need to think about how the business will financially support the plan. There are three primary ways of doing this:
- Voluntary arrangements – This involves the least capital input from your business. You simply identify a health fund for your staff and provide access to it at a discounted rate.
- Partially funded – Under this method, you and your employees split the cost of funding corporate health insurance premiums.
- Fully funded – Here, you pay the full cost of staff premiums.
However, that's not the extent of your options. A less common, but cost efficient, alternative is to use excess funding. Here, you offer to pay excesses on behalf of staff who need hospital treatment – this enables them to accept higher excesses, which often come with reduced premiums. From a financial point of view, excess funding doesn't have to be impacted by fringe benefit tax (FBT).
2. Get inside knowledge
When looking for the best deal, it's always good to have a little help from the experts. HICA has over 25 years' experience in assisting businesses to find policies that meet their requirements, without going over budget. Following a no-obligation consultation, we can research the market and present you with options based on your objectives.
However, that's not all we can do. Our experience means that we know a few hacks that could bring further benefits. For example:
- For larger businesses: We can negotiate discounts on the premiums for your plan, and extra perks including faster access to loyalty bonuses.
- For SMEs: As well as discounts, HICA can help you access special offers such as free introductory insurance cover or waived waiting periods.
3. Conduct frequent reviews
Just because your corporate health plan was the best option when you made the investment doesn't mean the same is true now. You should consistently reassess the plan to ensure it is fit for purpose, and research if there are newer, better options out there.
These reviews become even more important when:
- There are reforms to private health insurance: The Australian private health system has been radically overhauled in the last two years, and small changes happen on a regular basis. As not all health funds adopt reforms in the same way, check to ascertain whether you could be getting an improved deal elsewhere.
- If your company restructures: Corporate health plans should be tailored to the circumstances in your business, and headcount increases or reductions can mean that your current structure is no longer providing optimal ROI.
- Staff provide negative feedback: If your employees don't think your plan is offering value, they won't join and your investment will go to waste.
4. Calculate administration costs
As part of your research process, you should establish a rough estimate for how much the plan will cost to run once it's in place. Some employers worry that having a company plan will mean too much additional work, either for themselves or for HR staff – after all, someone has to help employees sign up, answer questions and deal with issues. This all comes at the expense of completing other important tasks.
Again, this is somewhere that HICA can help. We're big believers in the importance of customer service when it comes to corporate health insurance, and all the plans and products we offer are supported by our professional team. These experts can be reached online or over the phone to answer questions or provide any assistance you may need.
For more information on how HICA can help you to get value for money on your corporate health insurance, or to book a consultation, get in touch with our team today.