Voluntary health insurance (VHI) is a tool that helps solve sudden health problems and avoid the high cost of treatment. However, there are several features that you should be aware of before buying such a policy.
THE POLICY DOES NOT COVER THE TREATMENT OF CHRONIC DISEASES
It applies even to those chronic diseases identified during the term of the insurance contract. The insurer may refuse to compensate if a person has diabetes, hepatitis, or cancer. Insurers refuse because the company did not agree to serve such a client with uncontrolled health risks. Before buying a policy, ensure in advance the main exceptions to coverage and health coverage plans in MD.
CORPORATE VHI IS MORE PROFITABLE
In this case, the employer chooses the insurance program and also pays for it. If the employee does not have enough policy options, he can always pay extra for its expansion. For this, you need to contact the insurance company. The general trend now is: most employers are reducing their social package, and VHI is getting truncated.
YOU CAN BUY A POLICY IN A SQUAD WITH COLLEAGUES
The employer mentions this purchase in the legal entity. The price will be lower even if the employer is not financially involved in this scheme. You can negotiate about savings of 30 – 50% compared with the policy that you buy as a private person.
THE COMPOSITION OF THE PROGRAM AND THE COST OF THE CLINIC’S SERVICES ARE INFLUENCING THE PRICE OF THE POLICY
For instance, whether the program includes hospitalization or not, the patient can go directly to the clinic or through the company’s call center.
The price of the services of a medical institution depends on several components: starting from equipment, the level of salaries of medical personnel and the number of highly qualified doctors.
VHI POLICY FOR WOMEN OFTEN COSTS MORE THAN FOR MEN
There is a difference between a few hundred dollars. Women often need to visit a gynecologist and a mammologist. They need some mandatory and regular checkups that are not compulsory for men. Also, women are usually more sensitive to their health and visit doctors more often.
THE EXACT PRICE OF THE POLICY YOU WILL FIND OUT AFTER FILLING OUT A QUESTIONNAIRE ABOUT YOUR HEALTH
You may have to answer whether you have been in connection with the hospital for the past few years, whether you are taking any medications, and much more. An application usually takes several pages.
FOR PEOPLE OLDER THAN 55 – 60 YEARS, THE POLICY IS 1.5 – 2 TIMES MORE EXPENSIVE
For age-related clients, companies have special raising factors. It is also related to the risks that the insurer assumes.
SOME VHI POLICIES PROVIDE FOR SCREENING (CHECKUP)
A good checkup is an expensive pleasure. The cost of a checkup can account for up to half the cost of the policy. However, after 45 years, such examinations should be done annually.
IF YOU BOUGHT A VHI POLICY FOR YOURSELF OR YOUR NEXT OF KIN, YOU could APPLY FOR A TAX DEDUCTION
You will return 13% of its value to the government in terms of tax. The application for withholding is submitted to the tax service Federal department; by mail or through the personal account of the taxpayer.
When choosing a new job, highly qualified specialists always pay attention to the corporate policy of the company. Employee health insurance is an important part of the image of a successful organization. For many companies, the design of VHI for employees is already the norm. With the help of insurance, many personnel tasks are solved. It is staff motivation and maintaining loyalty. As well as improving the health of employees, and therefore increasing productivity. The experience of insurance companies shows that the possibilities of corporate insurance are much wider than simply attaching employees to the clinic.
VHI AS MOTIVATION FOR EMPLOYEES
In employee classifications and recruiting advertisements, many companies use the phrase “social package provided.” Thus, the employer attracts qualified personnel. The social package may include free meals, transportation to the metro and free sports. However, for many applicants, the decisive factor will be the availability of a VHI policy. Since quality medical care is one of the highest parts of family budget expenses, still it is mandatory.
BENEFITS OF VHI POLICY FOR THE BUSINESS
By issuing VHI for employees, the company not only increases staff loyalty and improves its image, but also receives tax benefits. VHI contributions are not subject to a single social tax and are included in expenses in an amount not exceeding 6% of the number of labor costs. Moreover, the contributions and payments under VHI are not subject to personal income tax.
WHAT DOES VHI OFFER?
Insurance companies offer different VHI programs. Organizations decide on their own which options to include in the policy. It all depends on how much management is willing to pay for the health of their subordinates. Standard VHI packages:
Outpatient care: When agreeing to this program, employees will receive consultations from doctors, including specialists of narrow specialties, various studies, medical examinations, physiotherapy, etc.
Dental care: This program includes examinations, treatment and emergency dental care.
Ambulance services: This service provides emergency care; transportation to the hospital.
Inpatient care: The program includes placement in the ward, medical care, medical procedures, food and medicine.
In addition to standard programs, additional bonus options are the part of the program. For instance, telemedicine service, this is a consultation of doctors at a distance, without a visit to the clinic. Some insurers offered a system of office doctors when the initial appointment of employees carried out in the offices of the organization.
VHI FOR NON-STAFF EMPLOYEES
The employer decides on how employees participate in the VHI program on their own. Typically, these points are prescribed in the provision of VHI. In addition to the basic points, they indicate to whom the policy applies. It can be full-time or non-staff employees. The same provision indicates whether VHI applies to workers on probation.
HOW MUCH IS VHI FOR EMPLOYEES
The cost of the VHI policy depends on the insurance program, age and number of employees. Insurance companies offer individual corporate rates. Therefore, it is always worthwhile to clarify all conditions and prices in insurance agencies, and they can always calculate the rates for several companies at once.
HOW TO APPLY FOR VHI
VHI is executed by the representative of the organization in the offices of insurance companies or agencies. More often, the insurance agent leaves the organization. For documentation, you will need to provide a written statement on the conclusion of an agreement in favor of third parties. The insurer will be the employer, and employees will use the VHI.
With the correct execution of the insurance agreement and the employment contract, the employer receives the right to tax benefits.
REGULATION ON VHI OF EMPLOYEES
When the employer decides employee insurance, the organization should issue a regulation on voluntary medical insurance for employees. The document indicates the general provisions, describes in detail how the VHI system works, who is subject to insurance and from where the funding comes. Besides, the provision prescribes the validity period of VHI policies.
VHI is a valuable tool for all companies. The high-quality and timely medical care increase the trust level of many employees for the employer and enhance the capabilities of employees. It would help if you stayed careful when filling out all the documents for the VHI policies. For the employer, they receive tax benefits.