In today’s
time every corporate be it a domestic or a MNC is looking at having the
most efficient employee benefit polices in order to recruit &
retain the best talent in the industry. Besides to consistently keep growing in the
fiercely competitive world corporates have begun to feel the need to identify what’s suits
best for their population, work profile & demography on the benefits offerings.
The most important & basic benefit in India
happens to be the medical Insurance protection which the employer provides its
employees and their dependents. Although its taken by the employee that the
medical benefit will be amongst the most basic benefit which he/she would be
entitled.However the employee have absolutely no clue about the financial
pressure organizations are going through to curtail the ever growing cost every
year yet ensuring the benefits are bettered or at least maintained every year.
Organizations are grappling with the increasing cost on medical benefits owing
to which either they prefer to hop insurers every year (which is surely not a
viable option anymore) or ask the employees to share the premium bringing down
their own liability or finally start reducing the benefits.
However the
fact still lies that organizations can very well budget for their medical
benefit cost provided they are open enough to understand viability &
sustainability in providing these benefits. Since every risk has a rational and
medical benefit is no exception there is a slow transition especially via the
MNC’s in India who are spending a lot of time and efforts through their broker
in structuring their medical benefit portfolio in line with the organizational
requirement and at the same time ensuring long term cost viability .The below
two simple & rational principles which can ensure that the cost for group
mediclaim is controlled and sustained over a years are:
A- A Sound Policy structure:
Very few corporates today pay attention on
have an optimum benefit structure which is sustainable and at the same time
viable for the employees. The whole agenda today is to go with the Insurer who
can give an obnoxious price which has no logic attached for the renewals. It’s
a myopic view where corporates fail to realize that today what they feel is
saved will propel into a much bigger cost tomorrow. The only reason why medical
insurance business in India does not yield underwriting profits and yet
unfortunately the cut throat competition amongst the Insurers to acquire and
retain business is ensuring that they keep the belief alive amongst the
corporates that irrespective of what claims they get the renewal cost would
still be much lesser than it. However the scenario is changing as everything man-made
has a limit beyond which things get out of control. Insurers now are getting
conscious of atleast not quoting less than claims to ensure that they are not
booking losses for their organization even before they service a business. Only
those corporates who are focusing on building the ideal benefit structure would
be able to sustain medical benefits in the long run and others would have to
either seize the benefit, ask the employees to pay or reduce the benefits to maintain basic hygiene level. With our experience we have seen quite a few
corporates who have managed to control their claims below 100% over the period
of last 7-8 years without compromising upon the benefits subscribed to.
B- A Measurable Employee Wellness Program:
This is something new to Indian
corporates wherein they are still dribbling with the idea whether a
comprehensive employee wellness program can have a reducing impact on their
overall claims thus helping them reduce medical benefit cost every year. Slowly
but surely once again the MNC’s are leading the way in showcasing that they
are in for this mechanism although it involves some investment but would
eventually have a three way impact along with an ROI within the organization as
defined below :
a. Improved Organizational Health Index
– The comprehensive employee wellness program ensures that most employees in
various age bracket do attend the HRA & the Biometric post which the
detailed analysis on both the counts push up two report – one for the employee
showing his/her health status , concern area, remedial measures , health score,
correctional lifestyle and some key awareness material leading to a healthy
life style – The second report is for the organization which receives a score
card on a scale of 100 for all employees who participated in designing the
corporate health Index which can be measured every year on the improvements.
Post the analytics the organization also has the list of those employees who
are into the red zone and might trigger claim in the near future for which the
panel of wellness doctors ensure that they handhold the employee through they
year in getting things better or under control. Since this is a continuous
process it is but natural that the score would better every year for the
corporate and the employee would get more aware about things related to health
& wellness.
b. Strong Employee engagement & culture – A
comprehensive wellness program brings about a sense of belonging amongst
the employees and the culture thus developed is very vibrant & wellness
oriented which is a pleasure to experience. Besides the employees also admire
the purpose and appreciate the outcome of the same in their professional and
person all lives.
c. Reducing
large ticket claims – Since the program focusses on increasing health index
scores for employees and organization apart from building an aware atmosphere
where the population knows ideals in heath & wellness standards, it will
have a reducing impact on large ticket claim and minimizing the smaller claims.
The ROI analysis on the same helps corporate to establish the fact that there
claims are actually being controlled or reduced compared to the previous year.
78% of all hospitalization through corporate employees who had an Insurance in
the last 12 years in the age bracket of 25- 38 where due to lifestyle related
disorders. That’s a big number in the younger lot of employees and further
strengthens the need of an immediate & comprehensive employee wellness
program which will control the scenario and cost.
We see this trend slowly but surely growing and the health
insurance sector in India moving to greener pastures where the dream of having
an underwriting profit will eventually come true. At the same time corporates are also
getting aware on the importance of having an ideal benefit structure, a
comprehensive employee wellness program & building upon a culture of
healthy lifestyle within their organizations which will make the medical
benefit more sustainable and efficient and will help them attract and
retain talents.
Amjad I Khan
Country Head- Employee Benefit Practice
J B Boda Group.
Image source : satisfyingretirement.blogspot.com, Google
No comments:
Post a Comment