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Why is company’s health plan not enough for you?

Why Is a company’s health plan not enough for you?

If you are like me or most other folks, you will feel that the health insurance plan provided by your employer is enough to keep you or your loved ones safe. Most of the institutions, private companies and organizations facilitate their employees with health plans as a token of appreciation and as an additional facility provided as well. These group health plans are usually comprehensive and cover most family members, whereas some might restrict it to only a four-member family. No matter what, if you feel the cover provided is enough, here is some bad news for you.

A reality check into the current medical expenses and one trip to the hospital will make you realize the coverage you felt so comfortable with is not enough. One of my friends recently got admitted to a hospital to undergo an operation for slip disc. He had a company-sponsored health plan with a cover of Rs.4 lakh, seems adequate, doesn’t it? Unfortunately, during the hospitalization, they diagnosed my friend with a weak liver. The operation, some other treatments, trips to the ICU along with tests and medications meant a fat bill was waiting during the discharge. And the final bill was a little shy of Rs.8 lakh. I hope and have my fingers crossed that you or no one that you know, comes across such a situation. But we can’t leave it to fate for such a situation, can we?

Here are some of the primary reasons why your company-sponsored health plan might not be enough for you. And that you might and in fact should another health plan to complement the existing plan and cover for the ever-rising healthcare costs.

  • Limitations

It is not unknown to come across situations where the health plan has certain caps when it comes to specific diseases or does not cover certain aspects of the treatment. Companies and institutions can’t provide an all-out comprehensive health plan, as it will pinch their finances. These cost cuts or loose corners will impact you dramatically. My friend’s situation serves as a great example of the fact that the company’s health plans might not have enough coverage for various needs.

  • Tax Benefits

When you opt for a healthcare plan on your own, you can claim the same for tax rebates under Section 80D of the Income Tax Act 1961. Any payments made up to Rs.25000 a year for a Mediclaim based policy for you or your family is exempted from taxes. The amount goes up to Rs.30000 if you are a senior citizen.

  • Cover post retirement

Any company-sponsored health insurance plan will be active until you are serving the organization. Once you retire, these benefits also lapse along with it. The most logical option in such situation is to buy a Mediclaim policy when you are in your younger days. The premium prices will be much lower and you might not have to undergo a lot of medical tests. Post-retirement also you can pick up a health insurance plan, but it will not only be expensive but also come at the inconvenience of having to undergo several tests.

  • Modification to plans

A change in the existing health plan might be good news at times and might be dreadful news at other times. Let’s say your company decides to increase your health coverage from Rs.4 lakh to Rs.5 lakh, that is obviously good news. On the other hand, it might do so at the cost of covering a fewer number of illness or coverage for fewer family members. All this translates to you having to pay healthcare costs from your pockets, which can indeed dent you financial planning severely. Several organizations are also known to increase the premium costs, without modifying the cover that they provide their employees with.

It is good to have a health plan provided by your company, no second thoughts about the same. But is it not always enough and you should look out for better options or for plans that complement the existing plan and increase its coverage. The rate at which medical costs are increasing on a yearly basis, it simply adds a lot of value to have a separate health insurance plan.

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