Corporate Medical Insurance
Many employers spend hours agonizing over what they need to consider when evaluating health insurance companies to provide a medical benefits for their employees. This decision usually involves four main issues.
1. The standard of care you want to provide your employees
In Kenya the main difference of providers in the health sector is standard of care they offer. The market has various categories. Most health insurance companies have different products to cater for different market segments and the main aspect to consider is the level of care you want to provide for your employees.
Many companies use a tiered system, which gives different benefits with different cover limits to different cadres of employees. The level of care chosen will determine the type of healthcare providers (Hospitals) your employees can visit for treatment hence the satisfaction of your employees and value for your money.
2. Covering the dependents of your employees
This is another factor to address; whether you want to cover the dependents of your employees. Most employers usually consider offer cover for dependents of employees in an effort to keep them motivated and as a retention strategy.
This should lead to obtaining quotations in various options to assess affordability and cost effectiveness bearing in mind that the larger the group the more easier to negotiate premiums. Placing cover on category basis depending on the job group of staff can also mitigate cost of a health plan.
3. The Budget for the health care plan
Budget is a key factor to guide decision making to buy insurance for your employees. Private health insurance is usually provided as an employment benefit and it is not a legal requirement like NHIF (National Health Insurance Fund). Guided by a professional intermediary, you have premiums matched with your budget or make some saving. The provider market is adequate to allow flexibility.
4. Type of health plan suitable for your employees and within the budget
The health insurance industry has various types of plans and provides choice for customer convenience. Some of these types of health plans include: Credit basis plan, Reimbursement Health Plan and Managed fund health scheme.
In addition to the above, it’s important to establish whether the plan is for In-Patient only or both In-Patient and Out-Patient. These combinations have a bearing in cost of the health plan.
5. Information for quotation
Health Insurance risks are very wide and have numerous dynamics which the insurance industry is still grappling with in order to be able to make profits. The statistics from Association of Kenya Insurers (AKI) shows the industry has continuously made losses from this business segment due to unpredictability of risks coupled with other factors like fraud and high costs of healthcare. Quotation will therefore depend on details of information provided to enable the insurer assess the risk clearly.