Insurance Blog – Awareness of the importance of employee health insurance
During the job application process, you will receive an offer from the employer or company you are applying for. Aside from salary compensation, you should also know what additional benefits you will receive if you are hired as an employee. With the various benefits offered, you should consider before deciding to agree to sign an employment contract. In this article, one of the benefits that is important to you is employee health insurance.
On the other hand, it is important for companies or job providers to provide employee health insurance as an effort to maintain employee well-being. Healthy and prosperous employees are those who are able to work well and productively. If their health is guaranteed, employees do not experience stress or mental pressure because they think about financial problems when they are sick.
What is employee health insurance?
According to Insuranceopedia, employee health insurance refers to compensation other than the rights that the company provides to employees, as an additional facility that aims to maintain the health and well-being of these employees.
Along with increasing the awareness of employees in maintaining health, companies should also provide health insurance for their best talents. According to a survey conducted by American Health Insurance Plans (AHIP) of 1,000 people who receive health insurance at work, 56 percent stated that their level of satisfaction with the health care provided by the company influenced their decision to stay. Current is an important consideration. Job or not, meanwhile, 46 percent said the availability of health insurance was a factor in choosing their current job.
The importance of employee health insurance for companies
For employers or companies, health insurance has the following benefits:
Attract the best potential employees
The company has the most valuable asset, human resources (HR). By offering health insurance, the best prospective employees will be more interested in signing an employment contract. Especially the start-up companies today (Startups) continues to emerge, the amount of employees moving from one location to another is increasing. Companies that fail to provide employee health benefits will fall behind the competition. Of course, the best employees choose companies that offer better benefits.
Retention of employees
Employee retention improves with employee health insurance. If it fails to retain selected employees, the company will lose the best talent. In addition, the cost of carrying out the absorption process will increase. Companies must protect the health of employees so that they do not have any financial problems when employees are sick. Employee welfare is also an important point. If you have insurance, employees don’t have to pay a lot if they get sick. According to a survey conducted by Glassdoor Economic Research, health insurance ranks highest as a benefit that drives employee satisfaction, even more than paid vacation benefits.pay time(and pension funds)Pension Plan).
Increase Productivity
Healthy and prosperous employees mean employees who have good performance and high productivity. If you have health insurance, employees will also be more focused on their work. There is no anxiety or mental stress due to high hospital charges. This company will get the best work result from its employees by providing health insurance.
Improve the company’s reputation
A good company will also provide good benefits such as employee health insurance. The reputation of the company will also increase in the eyes of employees and future employees. With a high level of satisfaction, employees will become the main promoters of the company. The best prospective employees will be more interested in applying.
BPJS for the health of salaried workers
You should already know that BPJS Kesehatan is the government-administered employee health insurance. Registration for BPJS Kesehatan employee membership is required by the company. This article is regulated in Law No. 24 of 2011 on Social Security Organization (BPJS). Companies are required to register in the National Health Insurance Program (JKN), both business entities and legal entities, for all employees and their family members.
Presidential Regulation (Perpres) No. 111 of 2013, paragraph 2 of article 4, states that BPJS health workers participants are defined as paid workers (PPU) and their family members. Family members include legal spouse/husband, biological children, stepchildren from legal marriage, and legal adopted children up to 3 (five) people.
From July 1, 2022, BPJS Kesehatan has started testing the Standard Inpatient Class (KRIS), replacing classes 1, 2, and 3 that were already in place. The nominal share of PPU participants is 5% of salary, the distribution of which includes 4% by the company and 1% by the employee. BPJS health contribution calculation for PPU participants, if the employee’s salary exceeds this nominal, a maximum of 5% of IDR 12,000,000 and a lower limit of 5% of the Regency/City UMR will apply. The legal basis of this law refers to Presidential Regulation (Press Release) No. 64 of 2020.
In Presidential Regulation (Press Release) No. 64 of 2020, it also mentions that the government intends to share benefits (Sharing of benefits) with private insurance corresponding to JKN Standard Inpatient Class (KRIS) adjustment determined based on basic health needs. When conducting standard classes, only essential items are covered by BPJS Health.
This means that BPJS Kesehatan alone is not enough. The community is given the opportunity to upgrade the healthcare facilities to a higher level, i.e. VIP or private class. One way to do this is to become a private health insurance company in addition to BPJS Health.
Health Minister Budi Gonadi Sadikin revealed that the lack of health facility services not covered by BPJS Kesehatan can be covered by private insurance. According to CNBC Indonesia, the health minister explained that BPJS will establish a cost-sharing mechanism Coordination of benefits (CoB) to involve the private sector. Coordination of benefits (COB) are two or more underwriting companies (BPJS Health and private insurance) that cover the same person (customer) for the same health insurance benefits. The goal is to optimize the benefits offered to insurance participants.
Additional income replacement insurance
Apart from BPJS for employee health, you should also have additional insurance that provides income replacement benefits in case of illness. Basic health insurance covers medical, inpatient and outpatient expenses, while supplemental insurance can provide income replacement benefit insurance. The more complete the health insurance provided by the company, the more the company is concerned to make the employees perform better.
For example, we can mention the hospital cash plan provided by Roja Indonesia. You will get daily cash benefits up to Rs 2 lakh per day which is not dependent on the hospital charges but as per your policy. You can file a claim even if your hospital expenses are covered by another insurance. This insurance can replace lost income due to hospitalization. It is very suitable for those of you who work as employees.
Therefore, more and more you realize that in addition to salary, benefits in the form of employee health insurance are also important. You also know that even if you already have BPJS Health, you should also have additional insurance that can provide replacement benefits for income that is reduced due to illness such as Hospital Cash Plan (Inpatient Insurance) from Roja Indonesia.