It's not just a raise in salary that should be a major concern as an employee. An increase in the amount of income without protection is certainly meaningless.
Be aware that medical costs will continue to increase over time. Based on Willis Towers Watson survey data, in 2020, the increase in health costs in Indonesia reached 11% per year.
The health of employees is certainly something that should not go unnoticed by the employer because employee productivity will greatly affect the company's performance.
However, if the company decides to cover the medical expenses of sick employees, it is likely that this will increase operating expenses which in turn will reduce profits.
One solution to mitigate this risk is of course by providing insurance for employees, but before deciding to provide this facility, please be aware of the following:
What is a Group Insurance Policy?
Group insurance policy is an insurance policy issued by an organization that buys protection for a particular group or groups. In a group policy, one contract will cover more than one individual or family.
The employee is not the party that makes and is entitled to receive a copy of the master contract, but the company has that position. However, employees will be given an “insurance certificate” from the policy holder, which in this case is the company.
Generally, group insurance becomes an employee welfare program initiated by the company. The group insurance program is actually not only limited to health insurance, but there are also life and pension programs.
The process of identification and selection of employee insurance risks differs from that of individuals
The process of identifying and selecting risks or underwriting group insurance is different from that of individuals. As is known in this process, there is a review of the factors that affect the health risks of the Insured candidates (employees).
For example, in employee health insurance, the insurance company will assess the risk of a group of employees.
Several factors that can influence the estimated morbidity rate of a group of employees include:
- The nature of the industry in which the insured candidates work Age distribution in the group, the older the age, the higher the morbidity rate
- The distribution of men and women in the employee group, this
is because even at the same age, the morbidity rate of women tends to be higher
than that of men.
Employee Insurance Will Become a Tandem BPJS Health
The Government through Government Regulation (PP) No. 86/2013 concerning Procedures for Imposing Administrative Sanctions to Employers Other Than State Officials and Everyone, Apart from Employers, Workers, and Contribution Assistance Recipients in the Implementation of Social Security, has determined that BPJS Health can be used to pay for medical expenses that cannot be covered by health insurance from the company.
Almost all diseases will be covered by BPJS, however, the treatment process using BPJS can only be done at health facilities (faskes) where the employee's name is registered. If they have to go to a specialist, the employee must go to the health facility and ask for a referral from a general practitioner first.
With health insurance, employees will be helped in terms of flexibility in treatment. The reason is, insurance can be used at any time without a referral from a certain health facility, as long as the clinic or hospital you are aiming for has collaborated with an insurance company.
It is better if employee insurance is equipped with disability and life income replacement benefits
The more complete the benefits of employee insurance, it shows that the company's level of concern for employees is quite high.
In addition to reimbursement for medical expenses such as hospitalization, outpatient care, and medicines, employers can also consider employee health insurance facilities in the form of disability income and life protection.
Disability income insurance can be defined as a health insurance program that provides income replacement for the insured who is no longer able to work, due to an illness or accident. The higher the risk of work owned by employees, it is better for the company to consider providing this insurance.
With the explanation above, hopefully you will understand more about the insurance provided by the company.
In essence, the need for protection is no less important than a salary increase. Due to the high cost of medical treatment, it could be something that interferes with financial conditions even though they already have a sufficient salary.