With the rising cost of healthcare, organisations are paying higher health insurance fees year by year. Singapore was ranked as the 4th most expensive country for health insurance, totalling USD 5,458 per employee in 2019. Compared to 2018, the fees increased by 9%, and it is expected to rise every year. On the other hand, Malaysia was ranked at 37th, paying USD 3,741, and the fees had increased by 8%.
With this trend, organisations don't plan to sit still. They want to reduce the corporate health insurance costs but are not sure what the other alternatives are in the market.
Before we get there, it is imperative to understand why insurance providers increase corporate health insurance costs every year.
Your corporate health insurance covers $1 million for your entire company. But last year, your company claimed $1.1 million. Your insurance provider, then, charges you with a higher fee this year. Why? Because they need to cover the additional claims you made last year. And this year, you could claim over $1 million as well, so they took precautions and raised the insurance fees.
Many people are unaware of this additional fee called "loading fee" charged by insurance providers. As a result, organisations are paying unnecessary healthcare fees every year.
This is why the benefits specialists in Mednefits are committed to helping organisations provide better and more flexible employee benefits at a lower cost.
This article will show you 3 alternatives you can consider to save money on corporate health insurance without sacrificing employee health needs.
You could be paying more than what your employees have utilised and weren't informed of it, except you have a system to keep track of your employees' benefits usage. What you can do here is switch to a lower insurance plan where it can still cover your employees' health needs and help you save costs at the same time.
Here are 4 important questions to ask yourself before making the switch:
If the majority of your employees spent below the budget and the lower insurance plan still cover their needs, this option is a good alternative for you.
Who is this good for?
You can choose to reimburse your employee's healthcare fees from your own pocket, making your healthcare benefits a self-funded reimbursement.
This is how it works:
Who is this for?
As the name says, you'll pay for only what your employees have used. You can allocate an annual budget for your employees' healthcare fees on a customised benefits platform.
It is quite similar to self-funded reimbursement but with a few added advantages: lower outpatient costs and an extra 10% benefits bonus. For instance, you budgeted $50,000 annually, and you'll receive an additional $5,000 - $10,000 (10 - 20%) as a bonus. Mednefits is currently the only platform in Asia with this service.
Who is this for?
Corporate health insurance is projected to rise year after year. What organisations can do to save benefits is by switching to a cheaper alternative without sacrificing coverage.
Today, you can choose from one of the three alternatives below:
Regardless of what your choice, employees are your biggest asset and their well-being deserves to be covered so they can be healthy and productive.
In the long run, healthy employees make a healthy sustainable organisation.
Not sure whether you’re overpaying or underpaying your corporate health insurance? Or uncertain whether your employees are fully covered?
Our benefits specialists can help you diagnose your organization’s benefits condition so you can find out the missing gaps and start patching them up. Get in touch with a benefits specialist here.
Mednefits helps businesses take care of their employees with its automated, affordable, and accessible employee benefits platform.
Request to join Mednefits for free to help process and track claims in real-time, while controlling costs.