A company health insurance plan, also known as group health insurance plan or employee health insurance plan, is a health insurance plan that provides coverage to members of a group that tend to be employees of a company or members of an organization.

The group members receive insurance at a reduced cost because the insurer’s risk is spread across a group of policyholders. Additionally, the fact that not all employees will be hospitalised at the same time helps companies provide this insurance.

A few reasons that work in favour of group or employee health insurance policy are:

- Unlike individual medical insurance policies, insured members don’t have to undergo tests or provide medical certificates to obtain group health insurance. Employees of the organization are eligible for the group insurance policy automatically.

- As your employer pays a part of the insurance premium, the cost of group health insurance is significantly lower compared to individual health insurance.

- Maternity benefits are a part of group health insurance; this is something that most individual health policies don’t offer.

- The same is the case with pre-existing conditions, but unlike individual health insurance, group health insurance covers pre-existing illnesses.

- You can make claims within the first 30 days of getting the group insurance policy.

- A relationship manager will be assigned to the company to take care of the employees’ policy-related queries.

- Co-payment is not required for members over 60 years of age in the case of group health insurance.

- Employer health insurance plans offer cashless hospitalization. This is a very important feature of employee health insurance as it helps the hospitalised individual as well as his family not worry about cash required for the treatment.

- Ancillary charges like ambulance costs and other charges are covered under group health insurance plans.