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How can an employer manage health insurance coverage upon transfer of employment? | Personal finance news

How can an employer manage health insurance cover at the time of job transfer?

New Delhi: The onslaught of the Covid-19 pandemic has wreaked havoc in the lives of individuals in more ways than one. The coronavirus pandemic has turned lives upside down while creating financial hurdles for families.

In addition to soaring medical costs and the disruptive pandemic, the most crucial aspect of any individual is securing their health insurance. It has become a necessity to invest in the same. (Also read: Have you recovered from Covid? You will have to wait 3 months to get a new life insurance policy)

Sanchit Malik, co-founder and CEO, Pazcare in an exclusive conversation with Reema Sharma of Zee Media said: “Many people have been made redundant from their jobs during the pandemic due to the inability to generate income during the pandemic, while many people have changed jobs for better prospects.”

In all of this, managing incentives from one job to another could be a cumbersome process for an individual. With the employee juggling everything, managing finances and accounts can be tiring. (Also Read: Why You Should Choose Employee Mediclaim Policy? Check The 8 Benefits Of Group Medicare)

“By changing base, an employer would play a crucial role in making the change easy and comfortable for the employee. By having a smooth disembarkation process, unnecessary hassle could be minimized. The employer must manage the on-boarding and departure process smoothly, as this also reflects the culture of the company, ”he added.

Malik adds that to better manage the insurance coverage at the time of job transfer, the current employer could allow the employee to continue to subscribe to the group health insurance policy until the end of the period. insurance because the premium has already been paid. They can also collect the differential premium, if necessary, from the F&F. It is not mandatory to follow it but can be done if the outgoing employee wishes to opt. It will also require a great employee experience overall, even when an employee leaves the organization.

Another portability option is also available in the market, but it is not adopted. When it comes to portability, employees can switch from group health insurance (GHI) to retail. Brokers could help with the same if they are equipped for it. The premium here will be that stated by the insurer for a retail policy, based on the history of claims over the four consecutive years. The PED waiting period will also be confirmed based on previous experience with police claims, Malik says.

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