So is it a common practice for employers to pay their employees that don't use the company's health plan. It seems to me that all or part of what an employer would spend on insurance should be given to the employee. The employee shouldn't necessarily lose the benefit just because a spouse has a better insurance or something like that.
From United States, Newton
From United States, Newton
1
dear friend,
in india company health plans usually have two components:
the first one is called 'domiciliary medical' reimbursements; which as the name would suggest deal with reimbursements of expenses of the employee and his family members. these expenses are in the nature of doctor visit/call fees; medicines purchased from dispensaries/pharmacies- all in all these expenses are not part of a 'hospitalization'. i.e. to say these expenses cover illness which do not result in hospitalization. this component in most companies is part of the annual cost of the employee. there is a tax rebate on this subject to a limit - which also calls for a tax (fringe benefit tax) to be paid by the employer.
the second one is the "mediclaim" - is run through an insurance company dealing in the same. the expenses claimable under mediclaim are part a hospitalization treatment - i.e. involving admission into a hospital which is followed by medical procedures. the insurance premium may or may not be charged to the employee.
so as far as the employers are concerned, the domiciliary medical reimbursement can be paid up to the employee with suitable tax treatment.
as for the mediclaim, if the employee cannot avail the same - because he is already member to another plan (by whatever reason), the payment of the premium payable by the employer (which is nominal in case of large employee groups) can be considered for payment to the employee.
regards,
mxsingh
in india company health plans usually have two components:
the first one is called 'domiciliary medical' reimbursements; which as the name would suggest deal with reimbursements of expenses of the employee and his family members. these expenses are in the nature of doctor visit/call fees; medicines purchased from dispensaries/pharmacies- all in all these expenses are not part of a 'hospitalization'. i.e. to say these expenses cover illness which do not result in hospitalization. this component in most companies is part of the annual cost of the employee. there is a tax rebate on this subject to a limit - which also calls for a tax (fringe benefit tax) to be paid by the employer.
the second one is the "mediclaim" - is run through an insurance company dealing in the same. the expenses claimable under mediclaim are part a hospitalization treatment - i.e. involving admission into a hospital which is followed by medical procedures. the insurance premium may or may not be charged to the employee.
so as far as the employers are concerned, the domiciliary medical reimbursement can be paid up to the employee with suitable tax treatment.
as for the mediclaim, if the employee cannot avail the same - because he is already member to another plan (by whatever reason), the payment of the premium payable by the employer (which is nominal in case of large employee groups) can be considered for payment to the employee.
regards,
mxsingh
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