Health insurance for employees

Employees should be protected by insurance

Health insurance policy is believed to be a wise choice for companies and it is a factor the benefits of the employees so that they can contribute the maximum. Thus, the company operating the wheel can still run well and every employee feel comfortable in their work. There are at least two important reasons why companies need to sponsor a health protection for employees through health insurance schemes. First, the condition of healthy employees will reduce the opportunity for them not to go to because of illness. With the high percentage of full attendance at the office, employee productivity is expected to be well maintained.

Second, health insurance coverage provided to employees as part of corporate compensation, and it aims to increase the attractiveness for qualified human resources so they join and continue to join their company and is committed to working with the best. Thus, the company's ability to attract qualified human resources with retention rates and high output can be maintained adequately. Both these practical purposes become the major reason why there are many companies that include health insurance as part of compensation for each employee.

Compensation with health insurance facility could become an important part of long-term strategy of human resources company in terms of competitive advantage so that the workforce can reliably determine the choice to come in and stay merged with the company concerned. In practice, companies could sponsor health insurance for employees as Individual Insurance and Group Insurance. First, individual insurance is the Basis of Individual Insurance Program that provides protection for employees and their respective families, in which life insurance company will publish one each policy for each employee.

That is why, in the process of publishing this type of policy, the company needs the results of diagnostic health of every employee to be analyzed. In this process, life insurance companies will use the Table of Mortality and Morbidity Tables to identify worthy least one employee to get appropriate health protection provisions and restrictions provided by the company. Mortality Table is the probability of death rates by age and gender, while Table Morbidity is the probability of occurrence of health problems.

The entire process is known as the underwriting process. Second, is the Group Insurance Group Insurance Program with a base that provides protection for all employees and their families through one master policy issued by life insurance companies. In this case, life insurance companies will use the reference issued by the Experience Rating Section actuary in calculating the premium to be paid by the company.



In the Group Insurance Program, life insurance companies will not do the underwriting process for employees one by one. Instead, the company will calculates premiums based on the Experience Rating in groups. Generally, the life insurance industry provides three kinds of health insurance implementation, namely (1) Indemnity Plans; (2) Manage Care Plans, and (3) Point of Service Plans. In practice, to provide optimum benefits for employees, large companies have adapted and provide one or two types of organization of insurance altogether.

The third form of organization of health insurance has the advantages and disadvantages. Which is the best choice, it all depends on the needs of each company. In the health insurance program based on the Indemnity Plan, the company provides insurance protection to employees in the form in lieu of cash compensation for medical expenses of those employees. Here the insurance company will pay the compensation to the employee or will pay it directly to the hospital / clinic or the treating physician after the employee health care.

This type of health insurance programs will pay the compensation or benefits based on insurance reimbursement for the replacement cost of care, good hospital care costs, operating costs, as well as physician fees. Indemnity Plan insurance program, employees can determine the choice doctor or hospital, then life insurance companies will pay the cost of employee health care after treatment is completed. Generally, an insurance program Indemnity Plan offers three health benefits, namely (1) hospital cash benefit plan), (b) expenses surgical benefits and (c) physician expenses and benefits.

Availability of various treatments for employees is a form of corporate concern in creating a conducive working atmosphere so that employee has adequate intensive morale because they guarantee good health. In turn, the quality of health employees also have an impact on the quality of their contributions so that company can succeeds in the future.