Cost of Major Medical Expenses Insurance for Employees
If you manage a company, you know how important it is to reduce expenses and provide for unexpected events. The administration of the company’s resources includes a fundamental element for its operation: its employees. Speaking of workers, offering attractive conditions that promote their permanence and contribute to productivity will always be a good investment. But also, if the benefits offered to employees result in a “win-win”, this is even better. One of the benefits that are highly valued in companies is medical expenses insurance for employees.
Major Medical expenses insurance for employees provides tax advantages and contributes to the sense of belonging by employees. It also allows workers to have medical support. In addition, it minimizes the wait for medical attention that impacts the time it will take for the worker to return to work.
Each company has specific needs and different budgets. Therefore, it is important that you receive proper advice and be able to answer all your questions. At the end, you will be able to take full advantage of the budget allocated to the contracting of medical insurance for employees.
How expensive is Major Medical Expenses Insurance?
There is no flat rate in medical insurance for employees. The cost is calculated based on the particular data of each company. The premium to be paid may be lower or higher depending on the census data and the coverages that are quoted. In this blog we present the factors that determine the cost of insurance for major medical expenses companies. In this way, you can know what influences the decrease or increase in the cost of collective medical insurance.
To calculate the cost of major medical expenses insurance for employees, some essential information is required:
- Participants age and sex
- Customer location
- Indicate if it is an initial or renewal policy. In case of renewal, you must provide the claims history for the last 3 years to evaluate the risk.
- Number of insured. If the group is greater than 300 insured(including dependents), the premium is calculated based on the group’s own experience. If they are less, it is calculated according to standard rates of each insurer and the premium varies depending on each insurance company.
- Contracted coverages, insured amounts, deductible and coinsurance. This information is recommended that you review it with your insurance agent to obtain appropriate coverage and conditions.
- Indicate if the policy will be paid by the company 100%. In this case, the premium to be paid tends to be lower.
- Indicate if the policy will be voluntary (contributory)
Although you can not know how much a group medical insurance costs without accurate information, as an example we tell you that once the entire group of employees is quoted, an average premium per person is taken. The cost of major medical expenses insurance for employees can be between 7 and 12 thousand pesos per insured (considering contracted coverage and customer location).
Information needed to request a medical expenses insurance quote for employees
To request a medical insurance quote for employees, you must provide the following information:
- Name, sex, and age of the employee and the dependents
- Customer location
- Desired Coverages
Factors that reduce the premium to be paid for major medical expenses insurance
The premium can be reduced by applying the following:
- Higher deductible
- Increasing the coinsurance (can be 10, 20 or 30 percent)
- Reducing the deductible and coinsurance in direct payments
- Participation in direct payments of deductible and coinsurance by the insured
- Waiting periods for pre-existing conditions or maternity
- Reducing the hospital level
You should take into account that although there is a possibility of lowering the price in medical insurance for workers, this implies, for example, a higher payment in the case of the deductible or coinsurance. Or wait a little longer to receive care for pre-existing conditions.
Factors that increase the cost of major medical expenses insurance for employees
There are some coverages that increase the premium to be paid in the insurance of major medical expenses for employees. However, although there is an increase in cost, there is also an increase in benefits. It is advisable to consider these coverages to have better insurance conditions. The benefit that the insured group will have will be better.
Some of the coverages that provide additional benefits and that generate an increase in the premium for group major collective medical expenses insurance are:
- Emergency abroad
- Worldwide coverage
- Catastrophic diseases
- Increase in surgical fees
- Preexistence. This coverage is only granted to groups over 300 insured and eliminating it or applying waiting periods can reduce the premium by approximately 20 percent.
- Dental plan (some proposals already include this coverage)
- Vision Plan (some proposals already include this coverage)
What do we recommend when quoting medical insurance for employees?
The major medical expenses insurance policy for employees has basic exclusions and is a corrective, non-preventive insurance policy. Therefore, there must be a definitive medical diagnosis to provide coverage of the expenses. In addition, there may be waiting periods in order to make use of it. Due to the doubts or concerns that may arise from the use of this insurance, we recommend having the professional advice of a mexican insurance agent such as PROTEC. In this way, you can obtain precise information from the moment of the quotation until the issuance of the policy and its subsequent use. To ensure the proper use of this insurance, it is essential to have a reliable insurance agent to accompany you and support you during the term of the policy.
An important point: cost is not everything. It is essential that you be clear about what you want to cover for your employees and what situations they are exposed to consider in order to quote. Similarly, you must optimize the budget you have available. For this last point, good communication with your insurance agent is essential.
Major Medical Expenses Insurance is a great benefit for your employees. In PROTEC we are ready to offer you a quote so you know how much a major medical expenses insurance for companies costs. We will send you a comparison of costs and coverage with at least two insurers so that you choose the most convenient for your staff.