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There’s a long and proud history of Australian companies providing health cover to assist their employees with the cost of health care treatment. In fact, many of the not-for-profit health funds which exist today started life as corporate health insurance funds.
However, there are now many health funds in Australia which offer corporate health policies to companies looking for cover for their employees. You can find out more about this type of insurance and the benefits of offering health cover to your employees through Savvy. Get connected to a corporate health insurance expert through us today.
What is a corporate health insurance policy?
A corporate policy is a type of health insurance offered by an employer to its employees. It's a type of group health insurance offered where the insurer has a fair idea of the average age of the group and the appropriate risk profile which applies to that demographic.
They’re either partly or wholly funded for the benefit of the employees. The cover offered may be very similar to that offered by major health funds on the retail market, or it may be more customised to the needs of the corporation and its members. They can also come with a further incentive to the policy-holding company, such as a discount.
Corporate health insurance is offered by some of Australia’s largest insurers to small, medium and large companies wishing to offer a benefit to their own employees under a group arrangement. You can enquire about corporate health insurance through Savvy to find out how your company could benefit from a plan.
What are the differences between employer-funded and employee-funded health insurance?
Corporate health insurance cover can be organised in different ways, depending on whether the company wholly or partially assists with the cost of the private health insurance provided to their employees. Different funding models include:
This is where the company pays either the partial or full cost of health insurance for its employees. It’s offered as a benefit of employment as a means to increase employee retention and overall wellbeing. Such an arrangement usually requires most or all staff members to join the health fund offered by the company to enable a corporate discount to be applied to its cost. The employer will incur a fringe benefits tax liability for the provision of this health cover, so a tax professional should be consulted before such an arrangement is put in place.
In such an arrangement, the company negotiates access to a health plan on behalf of a group of employees, which can include a corporate discount or other incentive if there are sufficient participants to justify an incentive being offered. Inclusion in the plan is usually voluntary, which is why a sufficient number of participants needs to combine to gain a corporate arrangement. The company may not contribute towards the cost of the health insurance but employees may get a better deal by joining their company health plan, rather than buying insurance individually.
What are the benefits of a corporate health insurance plan?
Corporate health insurance plans can provide numerous benefits to companies and their employees. Some of these may include:
Potential benefits of corporate health insurance – for the employer
- Provision of private health insurance to employees who may otherwise not have health cover, resulting in more choice about when and where treatment is provided. This can result in reduced staff absenteeism due to inconveniently-timed medical appointments
- May increase employee loyalty, satisfaction and retention rates
- The possibility to attract and retain overseas skilled workers or specialists to fill skills shortages in Australia
Potential benefits of corporate health insurance – for the employee
- Membership of a corporate health insurance plan will count towards Lifetime Health Cover, possibly avoiding the Medicare Levy Surcharge
- Can provide private health insurance extras benefits that are local and relevant
- Can possibly be cheaper than individual private health insurance hospital cover with corporate discounts (although this isn’t always the case)
- The possibility of convenient access to additional health and wellbeing services such as subsidised weight loss support, quit smoking programs and mental health support programs
- The possibility of reduced time spent organising and claiming back benefits for private health cover
How can I arrange a corporate health insurance policy for my company?
You can get in touch with a corporate health insurance specialist who can assist you with exploring all the options available for your company through Savvy. Customised health plans to suit individual companies can also be arranged so your employees gain the maximum benefit from your corporate health insurance policy.
Enquire about corporate health insurance through us today and you can connect with a specialist to help you with your policy needs.
Types of health insurance
This can help you pay for medical treatment if you need to be admitted to hospital. It can help cover the cost of your admission or accommodation and the fees charged by doctors, surgeons and anaesthetists. It can also cover other costs associated with a stay in a private hospital.
This helps cover the costs of health care treatments outside a hospital setting which aren’t covered by Medicare. This can include major and minor dental treatment, orthodontics, hearing aids, physiotherapy, glasses, contact lenses and podiatry (in most cases with annual limits).
This is a standard health insurance policy designed for a single person, rather than being tailored to cater to the needs of a couple or family. It may include hospital cover plus extras, or either of these types of insurance on their own, depending on what you're after for your health cover.
A family health insurance policy is designed for a family unit including dependent children who may reach up to 31 years of age with some insurers. It offers private health insurance suitable for the whole family and may include shared limits for all members included in your policy.
A health insurance policy aimed at seniors is designed to appeal to people who are in the second half of their life. These are often specific Silver Plus policies that offer the same cover as other health insurance policies, with the exception that pregnancy and childbirth cover may not be included.
Visitors who are in Australia on a temporary basis for travel, work or study may be able to take out Overseas Visitors Health Cover (OVHC). Many visas issued in Australia come with a requirement to take out this type of insurance, which covers visitors who may not be covered by Medicare.
Ambulance cover is generally available either packaged into your private health insurance or on its own as a separate policy or subscription. By having this protection, you could be covered for all eligible ambulance travel in Australia (subject to your insurer's terms and conditions).
The cheapest and most barebones form of private hospital insurance, this can include cover for rehab, in-hospital psychiatric services and palliative care. Having this policy will enable you to avoid paying the Medicare Levy Surcharge (MLS) and Lifetime Health Cover (LHC) loading.
Bronze hospital cover is a step up from basic insurance, including 18 further clinical categories such as ear, nose and throat, bone, joint and muscle, digestive system, joint reconstructions, gynaecology and chemotherapy, radiotherapy and immunotherapy for cancer.
Silver hospital cover is the second-most expensive type of policy and offers the second-most clinical categories. On top of what's offered by basic and bronze cover, it also includes heart and vascular system, lung and chest, blood, hearing device implantation and dental surgery.
The highest level of private hospital insurance available in Australia, gold policies can offer cover for pregnancy and birth, weight loss surgery, assisted reproductive services and insulin pumps on top of all the categories provided by silver, bronze and basic hospital insurance.
Why compare health insurance through Savvy?
Frequently asked questions about corporate health policies
Helpful health insurance guides
Looking for health insurance to cover your condition or treatment?
Read one of our helpful guides on a range of different ailments and potential hospital or extras treatments to help you find out if they're covered.
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