It is a common trend for working individuals to consider health benefits offered by their employer. While the health plans or health covers offered by employers may serve basic health needs, there are certain important aspects that are not covered by these plans. Most of the health covers offered by companies are not comprehensive health plans and therefore cover basic health needs. It is essential to read through and understand the benefits of the health insurance offered. It is also essential to identify the limitations of the employer’s health plans. Hence, it is essential to read the fine print of the health insurance document in order to maximize your benefits.
Reasons Why Your Employer’s Health Cover is Not Enough
It is absolutely beneficial to have health coverage from your employer. However, it is essential to verify if your health needs will be comprehensively met by the offered health cover. Let us have a look at why your employer’s health cover may not be enough for you.
- Basic Health Plan
One of the main reasons that many employees find their employer’s health insurance cover redundant is because it only covers the most basic health needs. By not providing comprehensive health coverage, many employees pay out of their pockets and end up accumulating hefty medical bills. Therefore, in most cases, the health plan offered by employers is as good as not having health insurance.
- Room-Rent Limits
Most basic employer health plans have room-rent limiting clauses. According to these limiting clauses, only a certain amount of room rent will be covered by the insurance provider. In most cases, the amount that will be covered is less than half the total room rent. In addition, this limiting clause also translates that the cover will extend on to the room and not to the nurse and doctor expenses.
- Co-Pay Clauses
With a co-pay clause, the insurer is allowed to pay only a certain portion of the overall medical expense. The remaining part of the expenditure has to be covered by the individual. Most insurance companies include this clause in their insurance policies to reduce liability and cut costs. Hence, it is absolutely crucial to look out for the co-pay clause in the terms and conditions before signing the insurance documentation.
- Employment Status
The health insurance cover that is offered by your employer will be in status only as long as you are employed under their contract. Once your employment is terminated, the health insurance offered to you by your employer will no longer be valid.
- Total effective Cover
The group health insurance policies do not offer high coverage. The total coverage offered is typically around the range of ₹1.5 Lakhs and ₹2 Lakhs. In case of prolonged hospitalization, the coverage offered would only vary between 20% and 30%.
In a Nutshell
While an employer’s health cover may seem like a great option for the time being, it is necessary to ensure its terms and conditions to make the most out of the health plan. It can be beneficial to avail of a health plan by yourself. You can opt for comprehensive health insurance through Finserv MARKETS and experience exclusive benefits such as nominal premium and an easy application process. You can also use the health insurance calculator to calculate the potential coverage offered.
