Health Insurance for Businesses: Learn About the Social Benefits

Is group health insurance worth it?

Health insurance is one of the supplemental compensation benefits most valued by employees. The savings employees can realize compared to an individual health insurance plan make this benefit crucial, especially when negotiating contract terms.

But the benefits aren't limited to policyholders. Enrolling in the plan also offers several advantages for organizations. In addition to motivating their employees, they also enjoy tax benefits through the Group Health Insurance.

In this article, we’ll explain the benefits for businesses, the main types of coverage, and what’s included. We’ll also help you choose the insurance plan that best suits your business and show you how to request a free quote.

Why is health insurance for businesses important?

Providing health insurance to employees demonstrates a commitment to their well-being. It is both a sign of appreciation and a motivator for work. But the benefits for the company and its employees don’t stop there.

Insurance Benefits for Employees

• Pay Increase: Although it isn't an increase in monthly pay, it is a boost to one's emotional well-being;
• Access to better health care: By taking advantage of an extensive network of providers and a variety of coverage options, employees are able to save on healthcare costs and reduce wait times;
• Greater motivation: When employees feel that the company cares about their health, they will be more enthusiastic.

Benefits for Companies with Health Insurance Plans

• Higher productivity: If employees are motivated, their productivity will be higher, which will increase the company's profits;
• Attracting and retaining employees: Offering health insurance makes your company more attractive to new employees and strengthens the loyalty of current employees;
• Corporate Income Tax (IRC) Deduction: The annual amounts spent on company health insurance premiums may be deductible for corporate income tax (IRC) purposes. For corporate income tax purposes, health insurance contracts benefiting the company’s employees or their family members are considered expenses for the tax period, up to a limit of 15% of employee-related expenses.

What types of group health insurance are available?

In general, there are three types of Business Insurance: reimbursement, network of participating providers, and mixed plan.

Reimbursement Method

With this coverage, the insured person is free to choose their healthcare provider. They simply need to pay the full cost of the medical service and then submit the relevant documents to the insurance company to be reimbursed for the amount to which they are entitled.

Affiliated network

Under this plan, the employee pays only a portion of the cost (for example, €15 for a specialist visit). The insurance company then pays the remaining cost to the healthcare provider.

Mixed format

This is the plan most commonly used by companies, and it combines the two previous options. In other words, employees can both receive direct discounts at network providers and receive reimbursement for services from providers outside the network.

Although the mixed plan is the most commonly used option, it is up to each company to evaluate and decide on the best health insurance for its employees.

What is the best health insurance for companies?

Five factors influence the availability and pricing of health insurance for businesses.

Roofs

Although there are predefined coverage packages, it is recommended to negotiate the coverage package that best suits the different employee profiles. For example, if your company employs many young people, they typically value outpatient care and childbirth coverage, but if you have older employees, they place greater value on hospitalization coverage.

So, the benefits most valued by employees are:

• outpatient clinic;
• capital buffer against serious illnesses;
• dental care, which includes cleanings, checkups, and dental treatments.

Capital Limits

The coverage limit, or ceiling, is the maximum annual amount available to each employee for each type of coverage. For example, a €20,000 ceiling for hospitalization and €1,250 for outpatient care.

As a general rule, when purchasing group health insurance, insurers are open to negotiating coverage limits based on the employees’ profiles and needs.

Award

This is the annual amount the company pays for each employee's insurance. The cost may be covered entirely by the organization or shared with the employee.

Negotiation is essential to securing competitive prices and special benefits, such as coverage for the employee’s household. Family coverage also gives the company greater bargaining power, as it spreads the risk associated with illnesses and allows for access to larger discounts, given that the number of insured individuals is higher.

Waiting periods

It is common for waiting periods of 60 to 90 days to be imposed for certain types of coverage. In other words, during this time, employees cannot take advantage of the policy’s coverage. These periods may be even longer for maternity coverage.

However, when purchasing insurance, it is possible to negotiate a reduction in—or even the elimination of—waiting periods for certain types of coverage.

Age Limit for Staying

Most corporate health insurance policies do not deny coverage to any company employee, regardless of age. However, it is common for these policies to set the maximum age for coverage at 65 or 70, which coincides with the retirement age.

In the case of an employee's children, the premium subsidy ends when they turn 18 or 25.

How can you get health insurance tailored to your employees' profiles?

Before negotiating a Group Health Insurance, you should first assess your employees' profiles to find the best plan for your organization.

Therefore, in order for the insurance broker to create a customized package for your company, you should consider the following points:

• set a limit for each type of coverage;
• select the desired option;
• determine coverage;
• limit the network of healthcare providers based on employees' area of residence;
• negotiate grace periods.

Offering health insurance to employees comes at a cost, but with the help of an insurance broker, you can easily create a plan tailored to your company's needs.

How do you simulate a company health insurance plan?

As you can see, rather than simply choosing the cheapest group health insurance, it’s more important to understand which coverage options are best suited for your employees.

That’s why at EXS Seguros we develop customized plans tailored to your company’s needs. In addition, you can count on our administrative support when enrolling your employees, so the process is easy, fast, and convenient.

To learn about our offers, simply use our calculator. To do so, enter your information and request a Free health insurance quote for businesses. We’ll contact you to request more information, and by comparing data from the most competitive insurance companies in Portugal (Advancecare, ARAG, Asisa, Caravela, Fidelidade, Liberty Seguros, Lusitania Seguros, MAPFRE, Médis, Metlife, MGEN, Multicare, Popular Seguros, PRÉVOIR, Real Vida Seguros, Saúde Prime, Tranquilidade, Una Seguros, Victoria, and Zurich), we’ll present the most suitable solution.
In addition to this plan, you can also extend coverage to your employees, including coverage for workplace accidents and life insurance.

In short, there are many benefits for both the company and its employees when taking out group health insurance. If you need help, at EXS we guarantee the support you need to find the solution that best suits your business.