Common Myths and Misconceptions About Corporate Health Insurance

In today’s competitive corporate landscape, employee welfare and benefits are vital for attracting and retaining top talent. Corporate health insurance is a key component of an employee's compensation package. However, myths and misconceptions about group health insurance can lead to misguided decisions.

In this article, we’ll debunk the most common myths to ensure your business has accurate information:

Corporate health insurance is too expensive for small businesses

Small businesses often encounter unique challenges when providing health insurance to their employees. Limited financial resources, fluctuating budgets, and a smaller workforce can make it difficult to find suitable plans. However, there are diverse options available that can fit the needs and budgets of small businesses.

Local insurance plans offer affordable coverage, though they might be more limited. Alternatively, international health plans provide broader coverage but may require a minimum number of employees, which can be daunting for smaller companies.

APRIL is transforming corporate health insurance with solutions tailored for both small and large businesses. Small enterprises can begin coverage with just one employee, offering flexibility as they grow. Larger corporations can choose from a range of comprehensive plans customised to their specific needs. Once the corporate scheme is established, adding new employees is straightforward, ensuring both protection for employees and cost management for the business.

Employees don't care about their health insurance plans

Employees want access to quality healthcare and are often willing to participate in wellness programs to improve their health.

While salary remains a significant factor, job seekers often consider the overall benefits package as a reflection of how much a company values its employees. Let's look at the data:

According to the 2022 Global Benefit Attitudes Survey, health and retirement benefits have surged to a 10-year peak in numerous markets across the Asia Pacific, establishing their significance as potent tools for attraction and retention.

87% of employees highly regard health benefits, including health insurance, according to the 2022 Employee Benefits Survey Report.

Wellness programs also play a valuable role in promoting employee health and reducing healthcare costs. Here are a few examples:

• Fitness programs: Offer on-site fitness classes or gym membership discounts

• Nutrition education: Provide seminars on healthy eating habits to maintain a balanced diet

• Stress management: Offer stress management workshops, meditation classes, or resources for mental health counselling to help employees manage stress

• Smoking cessation programs: Provide support for employees who want to quit smoking, such as nicotine replacement therapy or counselling

All health insurance plans are the same

There are many different types of health insurance plans available, each with its own benefits and limitations.

Larger companies may require more flexible and scalable plans to accommodate a diverse workforce, while smaller businesses might need more cost-effective options that still provide adequate coverage. At APRIL, we understand that every business is unique that’s why we create a personalised corporate plan based on different factors:

• Your desired level of coverage

• The size of your company

• Your budget

• The location of your employees

• Whether you need to differentiate benefits between employee categories

This helps you structure their coverage in a way that works best for your business and your employees.

Health insurance is only for sick people

Health insurance is designed to help individuals stay healthy by providing access to preventive care and early intervention.

While it does provide coverage for medical emergencies related to illness or injury, its importance also lies in the preventive and proactive healthcare services it offers. These services often include routine check-ups, vaccinations, and screenings for various conditions such as cancer and diabetes. Addressing health issues promptly can prevent them from escalating into more severe and costly conditions.

Choosing a health insurance plan is too complicated

With the help of an insurance advisor, companies can make informed decisions about their health insurance plans and employee benefits.

Seeking assistance from an experienced advisor simplifies the overwhelming task of navigating insurance options, technical jargon, and coverage comparisons when choosing the right plan for employees.

Advisors stay updated on the latest trends, regulations, and offerings in the market. They have access to multiple insurers, which provides an overview of the coverage options, benefits, exclusions, and costs associated with each plan.

All employees need the same health insurance plan

Employees have different needs and preferences when it comes to health insurance, and offering a variety of plans can help meet those needs.

Adopting a one-size-fits-all approach to health insurance might not be the most effective solution for a workforce with varying requirements.

Providing a selection of plans allows employees to choose the one that aligns with their specific healthcare needs. This not only promotes employee satisfaction but also ensures that everyone receives the appropriate level of coverage. For instance, you can offer them voluntary upgrades if they need additional coverage, such as dental cover, benefit upgrades, and opt-in maternity coverage.

Moreover, if your business has multiple locations, you should consider the varying healthcare landscapes in different areas. Providing flexibility to cover employees in different locations ensures that their healthcare needs are met, accounting for regional differences in medical facilities, costs, and health services accessibility.

Offering health insurance is not worth the investment

Providing health insurance can help attract and retain top talent, improve employee morale and productivity, and reduce absenteeism and healthcare costs.

Employee turnover can indeed be highly disruptive to businesses, resulting in significant financial expenses, up to 33% of an employee's annual salary. To combat this issue, providing employees with access to quality healthcare makes them feel valued, leading to higher job satisfaction. This, in turn, creates a more motivated workforce.

Providing primary care and preventive services further reduces healthcare expenses. With regular check-ups and early interventions, costly emergency room visits are minimised, benefiting both employees and employers financially. Demonstrating a commitment to employee well-being sets employers apart and solidifies their position as an employer of choice.

Whether you are a self-employed individual, an SME, or a large multinational corporation, we offer a wide range of international health insurance solutions to meet the needs of your employees. Our onshore solutions are available in numerous countries worldwide, with locally underwritten and fully compliant plans.