Corporate Health Insurance

Compare corporate health insurance policies through Savvy today. 

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, updated on July 6th, 2023       

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We’ve partnered with Compare Club to bring you a range of health insurance policies to help you compare them side by side.

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: 

Employer-funded 

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. 

Employee-funded 

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

Why compare health insurance through Savvy?

Frequently asked questions about corporate health policies

What factors should an employer take into account when considering corporate health insurance?

Questions to ask when considering corporate health plans include: 

  • Can my company afford to provide subsidised health care to employees? 
  • Will a corporate health plan assist with talent acquisition and retention? 
  • If a voluntary health plan is negotiated, are there sufficient employees who may be willing to join the scheme to provide critical mass and therefore attract a corporate discount? 

 

Even if you’re a smaller company, it’s still worth discussing your options with a health insurance expert (which you can do through Savvy) to help determine what the most suitable deal for your business may be.  

What happens to corporate health insurance cover when an employee leaves the company?

Usually, the employee would lose access to the corporate benefit of health cover. Health cover would be terminated for that one employee on an agreed date and any premiums paid in advance by or for the employee can be refunded for the unused portion of cover. The employee is then free to arrange their own private health insurance through a retail provider.  Your corporate adviser can assist these employees. If your business’ number of covered employees falls below the amount required to maintain your discount or another incentive, you would lose access to them as part of your policy. 

Can corporate health policies cover employees’ family members too?

This entirely depends on the arrangement the corporation comes to with its employees, and the health fund they insure through. Some companies may offer subsidised cover to their employees for singles cover, as well as couples or family cover, while others may offer the option of the employee paying the difference in price if they want a couples or family policy. 

Do age-based discounts still apply if employees choose corporate health cover?

This will depend on the health fund the company uses for its insurance, and the arrangements put in place for employees. Some funds will honour the age-based discounts provided by previous funds for individual employees, while others may come to individual discount arrangements with the company or corporation, depending on the average age and demographics of the employees to be offered health cover. 

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