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Is cost of increasing Insurance Premium YOY your Problem Statement?

Then you are at the right page on Google.

Insurance Premium for corporate is increasing YOY and the cost is substantial which can not be ignored by Employer. Health Insurance adds as an important driver to both existing and prospective employees however choosing the right Insurance Partner is crucial.

There is very limited scope in negotiating the premium across various Insurance Companies because they are governed by the same underwriting fundamentals. The only focus point for the employers is to reduce the claim amount which is directly proportionate to the Insurance Premium.

5 Ways to reduce the cost of Corporate Health Insurance Premium :-

1. Keep your Employees Healthy :

Healthy employees have various direct and indirect benefits to the organization. There are very creative ways of keeping your employees healthy which will also create employee engagement, team building and you can incentives your employees for being the healthiest amongst the team.

Example – Vedanta Ltd offered fitness band to each employees and offered incentives to employees who is most active by taking maximum number of steps or climbing stairs. There are various successful Startup which offers these kind of activities.

2. Learn your Claim History :

There is a lot you can do if you after you learn your organisation claim History and make a precise plan of action to reduce your next year Insurance Premium. You can either learn your claim data yourself or have your insurance advisor to do the same for you and ask them to share the numbers for these top 5 Questions :-

Number of claimed employees in the year?
  • How many claims were by the employee dependents and by employee directly?
  • What kind of surgeries were claimed in the year?
  • What was the average cost of the top 5 claimed surgeries?
  • Top 10 Local Hospitals utilized by the employees in the year?

3. Plan of Action post learning Claim History :

Every 5 questions above can guide you towards a specific plan of action to reduce your corporate Health Insurance Premium which is as follows :

Compare the number of claimed employees in the year with past 3 years to identify the employee who has been sick regularly, maybe he needs special care. You will also know the trend such as the age of employee in the organisation, demographic and source of recruitment, team or department of the employee. These trends can help you make sensible decisions in regards with recruitment and existing health plan required in the organisation.

How many claims were by dependents of employees and how many of them were directly by employees will give you an answer if it is really your employee base which is sick or mainly their family members who are exhausting the claim. Based on this you might want to restrict the dependent cover to limited band of employees so that it motivate the employee base to move up the ladder.

What kind of Surgeries were claimed in the year will tell you which are the typical type of Surgeries that is exhausting the claim ratio and if there is any relevance with the diseases which needs your attention.

The average cost of top 5 claimed surgeries will tell you if there is a variance in the cost of these surgeries claimed by the employees. You will be surprised to know that the cost of surgeries can vary between 30% from the cheapest to the costliest.

You need to narrow your network of hospitals based on the cost of the top 5-10 surgeries claimed by your employees in the year this will help you reduce the over-all cost of claim upto 30%.


4. Target your Location :

Having a blanked International or inter-state cover for all employees will increase your premium so pick and choose your employees who travels internationally or nationally.


5. Share Group Benefits with Employees :

Add-ons are tempting and you feel like offer it to all your employees but you also have an option to offer interesting Add-ons to your employees which will be expensive for him/her to buy if they would have bought independently so list down the Add-ons and let your employees value the cost benefit that you offer them to buy further add-ons in your health policies. Few Add-ons which your employees will like are :

  • Unlimited OPD Consultation
  • Dental Cover
  • Optical Cover
  • Maternity Cover
  • Life Insurance
  • Accidental Cover
  • Critical Illness Cover
  • Disability Cover
  • Preventive Package
  • Parents Cover