Small Group vs Large Group Health Insurance

  • Author :
  • TATA AIG Team
  • Published on :
  • 13/03/2024

Organisations come in various sizes and shapes, and their requirements change accordingly. Corporate giants need more prominent space and a larger human resource. At the same time, small organisations and startups need fewer overall resources. With the essential characteristics, their needs differ, too.

However, what these two sizes of organisations have in common is their responsibility to provide their employees with good benefits like medical insurance, wellness strategies, and other benefits. While it is not possible to provide individual health insurance plans to employees, insurance companies have designed group health insurance for that purpose.

Are there different policies for different sizes of companies?

Is there good group health insurance coverage for small businesses?

What is the difference between large-group vs small-group health insurance?

Let us find out in this blog!

Group Health Insurance Policy

A group health policy is an insurance plan that is sponsored by an employer or a leader of a group to reduce or share the financial burden of the employees or members of that group.

This policy provides financial assistance to the employees in case of a health emergency in the future. This offers great comfort and relief to the employees since these policies offer additional benefits for the employees as well as their families.

Small Business Group Health Insurance

A small group insurance medical plan is a policy that covers the financial future of a group that is small in size. The group might consist of members from 25 to 50 full-time employees. The minimum and maximum number of people required in a group for small group medical policy differs with every insurance provider.

You will have to verify and align your requirements with the insurance company likewise and then buy group insurance for your small business.

Large Business Group Health Insurance

A large group insurance medical plan can cover a large number of people, starting from 50 full-time employees to any number after that. If a company works with hundreds of employees, the employer can divide them into various groups of 50s or 100s and provide health coverage for them with different and suitable large-group medical policies.

Let us understand the different eligibility criteria for small-group vs large-group health insurance.

Eligibility Requirements For Small Group Health Insurance

  • A company is eligible for buying small group health insurance if there are 25 to 50 salaried full-time employees. The Insurance Regulatory and Development Authority of India has ruled the abovementioned criteria.

  • (The minimum number of salaried full-time employees might differ from one insurance company to another.)

  • The insurance provider will assess and analyse the financial stability, income, and capacity of the group before approving the insurance policy. This is to safeguard the financial benefits of the insurance company and ensure that this deal won’t be loss-bearing for the company.

  • Some insurance companies require the employer to contribute a certain percentage of their income to the policy’s premium. This percentage of the amount may vary from one insurance provider to another.

  • Startups or new small companies might face slightly more scrutiny to ensure the consistency and longevity of the business.

Eligibility Criteria For Large Group Health Insurance

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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