Health Insurance - Work Efficiency Barriers?

Health Insurance is being hotly debated in corporate amongst regulatory bodies, legal bodies as well as among the personnel. People are the key to remaining competitive in addition to technological innovations.

Hiring and retaining the best in human-power calls for an invigorating workplace, attractive pay-packages as well as that elusive component of intangible benefits. Very often, corporate HR ties itself in knots in evolving an unbeatable offer or one which is a tad better than the industry norm.

Health insurance offers a way out for the employers. It goes without saying that there are both pros and cons to providing insurance of health to employees. Let us glance at some of the advantages and disadvantages of insurance of health

For

    Change of scene from manufacturing to the less risky service oriented sectors
    Statutory mandates
    Rising awareness levels of the employer as well as employees
    Tool to retain talent and stay as a force to reckon with in the increasingly competitive world

Against

    Complexity of Insurance plans
    Easily dissatisfied employees
    A justification for discontinuance of the benefits arising out of the alleged high costs of insurance

Some more aspects that need to be considered

    Is the cost of health insurance rising?
    Why is it important in the context of employment?
    What are the alternatives available to insurance of health?

The Rising Cost: All the available evidences (rising cost of medicines, charges for consultation. hospitalization, surgery, etc.) point to it.

Importance in Employment: The support offered by health insurance is often seen as an addition to the income of the employee and can affect productivity, motivation, loyalty etc. The employers see it as an important tool towards hiring good talent and staying ahead of the pack

Alternatives:

a) Accidental Death and Disability Insurance: A strong challenger to the costly regular health insurance plan is the 'Accidental Death and Disability Insurance' once an add-on measure but now an insurance requirement (often legally required on some countries), and is low cost too, given the rising education levels, incorporation of safety measures at the workplace making accidents & the resultant economic losses less likely but covers the employer too against 'worker compensation' cases.

b) Group Insurance Schemes: Certain Group Insurance are custom made for meeting needs of employees are another low cost option before the employers.

c) Sharing Cost: Sharing of health insurance costs is an option and it is advisable to explore options with statutory agencies, employment partners etc.

d) Expert Advice : share information on new policies, cost sharing options, ill-health prevention, healthy practices among other information.