Employees are an organisation’s pillar of success. To keep them happy, employers offer various benefits under employee benefit packages. One such benefit is an employee health insurance scheme, also called group health insurance, in which financial assistance is offered to employees during medical crises.
However, with rising medical costs and inflation, employers are now looking for added financial pools to handle their employees’ medical emergencies. This is where the corporate buffer comes into play. By knowing all about the corporate buffer in group health insurance, you can make an informed decision.
What is the Corporate Buffer in Employee Health Insurance?
A corporate buffer is an additional financial asset maintained by the employer or organisation to assist employees in medical emergencies such as critical illness. This financial assistance is available over and above the coverage of group health insurance policies.
It can also be extended if the employee has exhausted standard coverage of the employee health insurance plan. The employee can also use the corporate buffer for their family members; however, the limit of family floater coverage must be exhausted before using it.
How Does Corporate Buffer in Group Health Insurance Work?
Any mishaps or distress in an organisation can result in additional financial expenses. That is why organisations prefer to buy business insurance online, such as group health insurance policies. Reputable insurance providers like TATA AIG offer group health insurance plans that are customised based on the requirements of your workforce.
However, group health insurance alone is not enough, which is why the organisation manages a corporate buffer. To use the corporate buffer in employee health insurance, employees need to contact the organisation.
The organisation has the authority to decide if the buffer amount is released only to employees or to their families too. To avail of the corporate buffer benefits, employees need to submit the following documents:
- Medical report of employees stating the illness.
- Doctor’s certificate for a required medical procedure
- An estimated cost for the surgery, medication and other treatments.
- Medical records of the employees
- The medical illness must fall in the list of critical illness categories issued by the employer.
- Documents state that the sum insured from the group health insurance plan is already exhausted.
Employees need to submit these documents to their employers. The employers will assess all the documents and, based on that, either approve or deny the corporate buffer request.
Benefits of Corporate Buffer for Employees
Corporate buffers offer necessary medical care without financial strain, especially during critical or unforeseen health situations. Some of the crucial benefits of corporate buffer in employee health insurance plans are:
Enhanced Medical Coverage
One crucial benefit of corporate buffers in employee health insurance is that they offer added financial assistance to employees in their hour of need. With a corporate buffer, employees can cover the cost of hospitalisation or other medical treatment if the limit of their existing coverage is exhausted.
Critical Illnesses Coverage
A corporate buffer can be a lifesaver when it comes to severe or critical illnesses such as cancer, heart disease, or organ transplants. For such ailments, the treatment is almost always long-term and highly costly.
As a result, costs may quickly surpass the sum insured in the standard plan. In such a situation, the corporate buffer ensures that the treatment is not delayed or curtailed due to financial constraints.
Improved Employee Well-being
Knowing there is a financial safety net in place reduces stress and anxiety among employees. This helps in offering better morale, higher productivity and higher overall job satisfaction to employees.
Thus, the corporate buffer not only protects against physical aspects, supporting physical health, but also supports emotional and mental wellness of employees.
What Expenses Are Not Covered Under Corporate Buffer?
Various expenses are not covered under the corporate buffer, such as:
Maternity Cost
Coverage for maternity expenses is not automatically included under the corporate buffer. It is at the employer’s discretion whether maternity-related costs such as delivery charges, pre and post-natal care, or newborn expenses are eligible under this buffer.
Excess Cost
Like standard insurance, the corporate buffer has a predefined limit. Any medical expense that exceeds the allocated buffer amount will not be covered and must be borne by the employee.
Non-Medical Expenses
Charges such as registration fees, service charges, admission fees, toiletries, or hospital administration costs are typically excluded under the corporate buffer.
Conclusion
A corporate buffer in a group health insurance plan acts as a financial shield for employees. It covers the additional medical expenses of the employees during medical crises.
It also helps employers by enhancing their brand reputation in the market and attracting a talented workforce.
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