Corporate health insurance is provided by most employers today to their employees.
Corporate health insurance is usually part of the benefits package that employees receive.
Such plans are meant to cover costs of necessary treatments and health care which are required by employees and their families.
As the cost of health care and medical treatment is increasing, a large number of employers are scrapping corporate health insurance from their benefits list.
This is generally true in cases of small businesses.
Employers think that corporate health insurance for the employees is a waste of money, and these funds can be used in a more productive manner.
However, they do not realise that such insurance is really important and will go a long way in decreasing employee turnover.
Corporate Health Insurance For Small Businesses There are certain eligibility criteria that must be met before a firm can apply for corporate health insurance.
One of the most important things is that the business has to be legitimate.
The business can either be structured as a partnership, corporation or a sole proprietorship.
If the business is a partnership business or a sole proprietorship, it should obtain a licence or should have filed for a fictitious name.
Limited liability businesses and corporations should file articles of organization and incorporation.
There should be at least two employees working full time.
The minimum number of employees in small corporations must be two and the maximum fifty.
Advantages of Corporate Health Insurance Corporate health care insurance can be beneficial for the employers and also for the employees.
If an employer or his family members require treatment or surgery, they will be covered under the plan.
The same goes for employees.
However, the employer also has the option of getting an individual medical insurance policy.
In any situation, having a corporate insurance cover can be a life saver.
According to the Federal Law, if any individual seeks coverage under a group, he will not be denied coverage regardless of his past claims history.
On the other hand, the exclusion period for pre existing conditions cannot be more than 12 months.
The advantage of collective bargaining power is that the monthly premium will be low.
Because of the members in the group, the employer also pays a small amount of premium.
Since the employer contributes a small amount as monthly premium, it reduces his tax burden because insurance premium is tax deductible.
Alternatives There are a large number of employers who cannot provide corporate health insurance to their employees.
In such a case, they can opt for a health savings account which will be employee owned.
HSAs or health savings accounts will be used to collect funds for future medical treatments.
For example, if any employee suffers a medical problem later on, funds from this account will be used for his treatment.
The employer can choose the amount each employee has to contribute monthly.
Moreover, such a scheme also allows employees to choose their own health care insurance provider.
Whether you choose HSA scheme or a corporate health insurance plan, both help reduce employee turnover and helps businesses save a lot of money that would be spent on hiring new employees.