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Group Health Insurance

Name: Group Health Insurance
Creator: Savvy
Published: 2023-03-29T17:00:40+10:30

 Discover what group health insurance is and compare quotes through Savvy.

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Written by , updated on July 6th, 2023

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Providing additional employment benefits such as group health insurance can be a great way to cultivate company cohesion and loyalty. As well as providing private health insurance to employees who may not otherwise be able to afford health cover, private cover may help employees to return to work faster following illness or injury.

You can get quotes and find out about corporate group health insurance policies here through Savvy. You can arrange for a health insurance specialist to work with your company to investigate the options available for your group health insurance needs. Connect through Savvy to get free quotes and expert advice to help with your corporate health insurance needs today.

What is group health insurance and what does it offer?

Group health insurance (also known as corporate health insurance) is a way to provide private health cover to a connected group of members, usually employers for their employees. If there are sufficient people all wanting a health insurance policy, the company can potentially arrange a corporate discount or other arrangements for health cover for the entire group. This may make the health plan cheaper for employees than a retail policy.

Fully or partly subsidised group health plans including hospital cover and extras benefits can sometimes be customised for the needs of the individual company or corporation. Such plans usually require most or all of the workforce to join the plan, which can offer benefits tailored to the company’s specific location. For example, a group discount could apply, or access to local services such as membership of a particular gym.

Since the employer is offering an employee benefit through the provision of hospital or extras health insurance, a fringe benefits tax liability may be incurred by the company. Professional tax advice should always be sought before putting such an arrangement in place.

You can find out all about corporate health insurance and connect with a group health insurance specialist through Savvy. A specialist can work with your company to talk you through your options and help determine which may be most suited to your business or employees. Start the journey to get group health cover for your employees through Savvy today.

What types of group health insurance policies are available?

There are two different types of group health policy available in Australia. These are:

Employer-funded health insurance

A group health plan may be either totally or partially funded by the company. Such a plan is known as an employer-funded policy and is frequently offered to employees as part of a salary package. A health insurance package can be an effective sweetener to attract skilled individuals both locally and from overseas in a highly competitive and tight labour market. Large and small companies can use group health insurance to not only attract skilled employees but also increase retention rates and keep great employees motivated to remain with the company.

Employee-funded health insurance

This type of health insurance is a voluntary group plan which can be negotiated by the company on behalf of a group of employees. The company doesn’t necessarily directly contribute towards the cost of the health insurance premiums but rather assists the employees to potentially get better value health insurance as a group than they would be able to buy on the retail market as individuals.

The company may do this by negotiating a package for their employees which includes a corporate discount, lowering the cost to individuals. As membership of the group is voluntary, success depends on a sufficient number of people getting together and agreeing to use the same provider to make a group discount worthwhile from the insurer’s point of view.

Types of health insurance

Hospital cover

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.

Extras cover

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).

Cover for singles

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.

Cover for families

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.

Cover for seniors

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.

OVHC

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

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).

Basic hospital cover

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

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

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.

Gold hospital cover

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.

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Frequently asked questions about group health insurance

Is it cheaper to get health insurance through a group plan?

This will depend on the individual and customised group health insurance plan you negotiate for your employees. The cost of any policy will depend on a number of factors, such as location, as well as whether there are sufficient group members to apply a corporate discount.

Will a group health plan count towards my Lifetime Health Cover?

Yes – any hospital cover policy offered by a registered Australian health fund will be regarded by the government as adequate hospital health insurance, thus counting towards the Lifetime Health Cover of individual employees as a result. This will mean individuals won't have to pay the Medicare Levy Surcharge either, for the period they hold private cover.

Can age-based discounts still apply for members of a group health plan?

Age-based discounts for those employees aged under 30 may still be available depending on the insurer you choose and the exact details of the group policy that is negotiated on behalf of employees.

Can corporate health policies cover family members too?

Again, this will depend on whether the group health insurance is employer-funded or voluntary, as well as the specific details negotiated with individual insurers offering the group policy. Sometimes a company will subsidise single health insurance for the employee and provide the option to upgrade the policy to a couple or family policy at the employee’s own cost, while others may offer to subsidise family and couples policies.

Health insurance by age group

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