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Should Small Business Owners Buy Health Insurance

India's economy has experienced incredible growth in recent years. Launching a small business has now become easier with the assistance of numerous government schemes. However, maintaining a position in the market can still be difficult. It also gets challenging to recruit and retain potential employees while just starting out a business. 

 

Offering valuable perks like health insurance is one strategy to encourage your employees to stay with the company and serve. With the protection of health insurance, the employees may feel more secure and be dedicated to working in your company. Thus, small businesses should invest in low cost health insurance for small business owners to retain a committed team.

How Does This Policy Work

A small business owner signs up for a private insurance company's group health insurance plan and then makes the plan available to his or her staff for enrollment. The employer contributes to a portion of the monthly premiums while the employees are mostly liable for their deductibles, copays, coinsurance and any services not covered by the plan.

How to Choose the Right Small Business Health Insurance Plan

When it comes to choosing the best health insurance plan, there are several health insurance options for small business owners. The best small business health insurance companies offer affordable premiums, flexible coverage, availability, and a wide range of healthcare service providers. We have listed down some of the most important factors that should be considered while comparing and choosing the best health insurance for small business owners.

  • Understand the types of Small Business Health Insurance

Preferred Provider Organisation(PPO) plans, Health Maintenance Organisation(HMO) plans, Health Savings Account(HSA)-qualified plans, and indemnity plans are the four primary types of health insurance that small businesses can select from. Understand each one and select the one that you find most relevant.

  • Make a Comparison between Policies

Before selecting a group health insurance plan for your employees, make sure to evaluate the numerous plans on the market. Make sure to consider the features of the plans, the services provided by the different insurance providers, and the cost of health insurance for small business owners. 

  • Take the list of Network Hospitals into Account

An insurance provider with a wider network of hospitals might be beneficial because your employees may live in multiple cities around the country.

  • Buy A Plan With Good Coverage

While staying within your budget try going for a plan that provides maximum coverage for each of your employees.

  • Check Sub-limits

Sub-limits are restrictions on a range of coverage options, choose a policy with a greater sub-limit or none at all.

  • Understand the Policy's Terms and Conditions

Understanding the inclusions and exclusions of the policy is crucial as every insurance company has slightly different terms and conditions listed in the policy agreement. Make sure you go through them so that your employees do not encounter problems.

Conclusion 

According to the Insurance Regulatory and Development Authority of India (IRDAI), small businesses with less than 20 employees can purchase a group health insurance plan. However, if your workforce is smaller, you can expand the coverage to the family members of the employees and meet the standards by reaching a minimum of 20 individuals. 

 

Keep in mind that health insurance plans for small business owners give financial assistance to employees in times of necessity. Providing this benefit will make your employees happier while leading your business to reach greater heights. Thus, invest in good and affordable health insurance for small business owners.

Best Health Insurance Plans Available at Bajaj Markets

FAQs

  • ✔️When must a small business provide health insurance?

    The law does not force small business owners to offer health insurance to their staff. However, providing health insurance to your employees will keep them happy.

  • ✔️Who pays the premium in a group health plan?

    The employer pays the premium in a group health plan. However, if the employee opts for additional benefits,  then the employee needs to pay the extra amount.

  • ✔️Is group health insurance mandatory?

    Yes, in India, medical insurance for workers is made compulsory after the nationwide lockdown in 2020 for COVID-19.

  • ✔️What does group health insurance cover?

    A group health insurance covers the employees from a variety of medical expenses, including in-patient hospitalisation costs, pre and post-hospitalization costs, daycare procedures, ambulance costs, etc.

  • ✔️What is the best health insurance for small business owners?

    It is difficult to choose a certain plan over other health insurance policies, however, Go Digit, Care Health Insurance, and National Insurance are some of the popular group insurance companies in India.