Top Reasons Why Employees Don’t Utilise Group Health Insurance

1. Unaware of the Benefits Available

Companies design employee healthcare benefits to keep employees happy, make them productive and retain them. But these benefits are many times not utilized if the employee is not aware of the availability of these benefits. Thus, it is crucial for the organization to communicate and educate their employees about the same and strengthen employer-employee relations.

2. Find it Difficult to Use Benefits

This is a key reason why employees might not use group medical insurance. The availability and methods of accessing group health insurance can differ between companies. New employees, in particular, might not be familiar with these nuanced distinctions.

Also, for the existing employees, if there have been any changes in the insurance plan, proper communication and assistance need to be provided to them so that they can avail that facility. In absence of such assistance, an employee might ignore the benefit altogether.

3. Limited & Basic Coverage

There may be chances that the types of illnesses eligible for claims under the policy are not included. That means the employer has opted for a basic plan which may not include many illnesses. In some cases, dependents may not be covered, which may be one of the reasons why employees don't utilize employer employee insurance.

4. Long Procedures or Lots of Paperwork Involved

For some employees, the insurance claim process may seem quite a task. Many of your employees may not be utilizing this benefit just because the overall procedure and the time required to process may be too long.

The amount of work an employee needs to put into availing of this facility could be a reason for them ignoring this benefit altogether. The best way to solve this problem is to offer a seamless and hassle-free approach through a reputed online aggregator like Policybazaar.

5. It does not Cater to Their Evolving Needs

An employee group insurance may be of very less importance if it does not cater to the employee's evolving needs. Employees these days look for value-added plans that include wellness benefits like telehealth features, bookings and discounts on lab tests and OPD consultations, reward points, yoga and fitness sessions, etc. Also, they prefer a quick and hassle-free claim settlement process, ease in modifying details, etc., simply with a click of a button.

6. Social stigma

There may be a social stigma around utilizing certain benefits like mental health services or other illnesses. Employees may not be too comfortable exposing their illness in front of their co-workers, thus, deterring them to utilize the benefits of employee medical insurance. An organization must foster an environment that helps de-stigmatize and make such benefits accessible and confidential.

Conclusion

Underutilized group insurance policies don’t just affect the employee, they can have an impact on the company too. In absence of employee group health insurance, or an underutilized one, may lead to employees having a hard time dealing with the financial challenges arising from a medical emergency. Thus, impacting their productivity level and quality at work, which in turn affects the company’s overall performance. It is up to the HR managers to make sure the employees aren’t missing out on group insurance benefits.