In both Dubai and Abu Dhabi, the provision of medical insurance for all employees has been mandatory since 2014. In fact, Article 5 of Abu Dhabi’s health insurance law states that employers must also cover the employee’s spouse and up to 3 of their children under the age of 18.
But that’s not to say that group health insurance is just another ‘box to tick’ in order to remain compliant with local regulations. Quite the contrary. Opting for a comprehensive insurance plan can ultimately increase the profitability of your business by simply improving your existing employee benefits package. And with 66% of workers claiming that benefits are the most critical factor when choosing a job, the right insurance plan will help to attract top talent, improve employee retention, and position your company as an industry leader.
What is group health insurance?
Also known as corporate medical insurance or group mediclaim, group health insurance refers to the formal contract between an insurance provider and a business, organization, or association. A single policy is issued to the entire group, regardless of pre-existing conditions or medical history, meaning that all employees receive equal coverage and pay affordable premiums.
Oftentimes, it’s even possible to provide different levels of coverage for different levels of employees. This breakdown should of course be standardized, based on senior leadership, middle-level managers, and entry-level employees, etc.
Package types:
If you choose to offer a range of packages, there are three main levels to choose between:
Basic benefits: inpatient and outpatient medical coverage are the most commonly sought after features, therefore forming the base of most employee benefits plans. Any condition that would lead to the admission of an insured person into hospital overnight would fall under this category. As do most conditions requiring outpatient treatment, such as check-ups at the doctor’s office, the fixing of broken bones, and oftentimes even treatments as complex as chemotherapy.
Middle cost benefits: this level of service includes additional benefits such as coverage for dental, vision, maternity, fertility, and more. These additional features increase the price of the plan but are often considered a cost-effective way to add value to your company’s overall compensation and benefits package.
High cost benefits: this level of comprehensive health insurance covers just about every kind of medical treatment available. These plans often include wellness programs, preventative healthcare components, and many other value-added benefits that can make an employee benefits package - and thereby the organization itself - highly attractive. These types of benefits may even go as far as to include nutritionists, health seminars, gym memberships, and much more.
The cost of your group health insurance premium will typically depend on a number of factors, including:
Number of insured members on the plan
Average age of insured members
Type of occupation (certain jobs have a higher health risk than others)
Employer’s claims history
Geographical area covered
Level of benefits provided
Deductibles (the set figure to be paid out of pocket before the insurer begins to pay for covered medical services)
Choosing the right plan:
The first step in selecting the right group health insurance policy for your company is understanding what people value. Have discussions and survey your employees to determine their needs and make sure to consider their medical requirements, family members, and financial ability to pay premiums.
Here are a few key benefits to look for during the decision making process:
Family coverage: most plans will come with an option to cover spouses and children. If a high number of your staff have dependents, this would certainly be a welcome benefit.
Pre-existing conditions: the inclusion of coverage for pre-existing conditions will be greatly valued by employees with ongoing health conditions but will inevitably increase premiums. This is therefore a decision that will require greater insight into the medical history of your staff.
Dental and vision insurance: as two of the most common reasons to seek medical assistance, dental and vision insurance are rarely offered in standard packages. Paying extra to include these benefits in your group health insurance plan can greatly increase employee satisfaction.
International coverage: there are two situations in which international coverage can be a useful addition. Either your employees travel frequently for business, or you’re looking for a standardized plan that can work for all company divisions, irrespective of location. In both cases, opting for an insurance provider with a reputable international network is advisable.
Maternity insurance: The cost of childbirth in the UAE can be anywhere between AED 20,000 and AED 30,000. Employers offering maternity insurance as part of their employee benefits package are therefore likely to be viewed favorably by both new and existing employees.
For more information on what to look for when choosing a group health insurance provider, check out our blog on the 6 things to consider when selecting a group health plan.
It’s important to assess which features will provide the most value to your employees in order to devise an equally cost-effective and value-enhancing solution. The contents of the end product will no doubt vary from business to business, which is why a customizable plan is always advisable.
Tailor-made insurance packages, such as those issued by GulfCare, offer flexible policy benefits, enabling you to pick and choose the most suitable benefits for your unique requirements.
Get in touch with our team of consultants to build your own plan and receive a free quote.
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