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A HR guide to finding the right corporate health insurance

17 June 2019 - 12:01pm

The task of finding the right corporate health insurance policy often belongs to a company's HR department. 

Given that there are a total of 37 registered health funds in Australia, each offering a huge range of choices, it's not always easy to know where to start your research.

This is why we've compiled this corporate health insurance guide for HR staff. We'll look at meeting employee expectations, how to access corporate products and ways HICA can help you pull it all together to offer the best value to staff and the company. 

HICA can help you  research the options to find customised corporate health insurance.HR staff need to establish a corporate health plans that provide real benefit to employees.

Meeting employee expectations

Corporate health insurance plans can be a powerful talent attraction and retention tool for businesses, but only if they provide real value to staff.

There are a number of important steps to take to ensure your choice ticks the right boxes:

1. Make sure staff are informed

Corporate health insurance could well be a new concept to your staff, and they might not immediately understand what they can gain from it. Communicating how the system would work and the ease with which they can sign up will demystify the subject and make the process smoother going forward. 

This is especially true given the rising cost of private health insurance. Some employees may already have their own cover, and so dismiss corporate health plans as unnecessary - however, once they realise the benefits they could gain by switching, they may change their minds. 

2. Gauge interest

Employer paid health insurance has always been an in-demand job perk. Even millennials, whose demands often differ from previous generations, still seek this benefit. Indeed, in a report from PwC, eight per cent of this cohort listed corporate health insurance as the single most valued incentive a workplace can offer. 

However, every business is different, and we advise surveying staff before you begin researching policies to see if there's real demand. It's also vital to establish if certain options are more desired than others. For example, do staff want hospital or extras cover, or both?

3. Offer added flexibilitiy 

Corporate plans are more flexible than most employees think, and it's important they know they can:

  • Include family and dependents - This is important to ensure employees are comfortable to switch from family-based policies they may already have
  • Access additional benefits - Corporate health plans can access extras like free dental cover on certain services, if this is important to them. Your corporate health insurance needs to work in the best interests of your staff.Engage with staff to find out what they want from a corporate health plan.

How to access corporate products

As well as satisfying employees, the corporate plan you choose needs to be the best fit for the business.

Key to this is establishing how the business will support the plan once it's in place. Traditionally, there are three options:

  1.  Voluntary - Here you provide access to a chosen health fund, but the employee pays for it. This is the most cost effective option for the company, but provides the least value to staff.
  2. Partially funded -  This is a cost-sharing arrangement between the employer and the employee that splits the cost of premiums. 
  3. Fully funded - In this instance, the business pays the full price of the premium on behalf of the staff member.

However, there's an alternative that many organisations aren't aware of - excess funding. In this model the employer pays some or all of an excess should an employee need hospital treatment. With this safety net, employees feel safer accepting higher excesses on their policy and can save as much as 15 per cent in premium costs.

A soundly structured plan should be easy to budget for, and also can reduce or eliminate Fringe Benefits Tax (FBT) which is often associated with businesses supplying benefits to staff. 

HICA can help you understand how  to fund a corporate health plan.There are different ways to fund corporate health plans.

How can HICA help?

HICA has been assisting businesses find customised corporate health insurance for over 25 years. Our services can support HR departments at a number of stages in the process:

  • Market research - Following a no-obligation consultation, we can put our expertise to work in structuring a plan that meets your objectives. We will present you with a range of options to supply to your CEO, saving you valuable time.
  • Administration We can assist you with the set up and day-to-day running of your plan. Our team is only a phone call away to answer any questions you may have.
  • Promotion - Ensuring staff buy-in is vital if your health insurance plan is going to take-off. We're experienced in communicating with employees and promoting the plan around your business.

For more information on how HICA can help you track down the best corporate health insurance, get in touch with our team today.