Occupational or Corporate Health Insurance, also referred to as betriebliche Krankenversicherung (bKV), is fast gaining popularity and for good reason! This type of supplementary health insurance offers a wealth of benefits for both employers and their employees. The formula for its success is fairly straightforward. Happy, healthy employees equal a happy, healthy and prosperous company- simple.

 

What is Corporate Health Insurance?

Corporate Health Insurance is a company-funded benefit that offers group health insurance for its employees. As you can imagine, in such a competitive job market and with an ever-growing concern surrounding the shortage of skilled workers here in Germany, offering such a benefit can be very attractive to potential employees. Therefore, it is seen as an effective recruitment strategy for attracting good talent.
The appeal of Corporate Health Insurance for employees is often something underestimated by a company. However, research has shown that for employees, Corporate Health Insurance is the third most important personnel benefit after company pension schemes (bAV) and VL saving and investment options. Another study showed that the bKV appealed to employees more than common benefits such as transport subsidies and mobile phone plans. Furthermore, 78% of employees in Germany in existing Corporate Health Insurance plans stated that they see the benefit of their bKV. Many employees also see it as a desirable extension, top-up or supplement to the GKV (statutory health insurance). This is especially so if they cannot afford the same level of comprehensive health insurance themselves.

The Benefits for Employees

Not only do employees who have Corporate Health Insurance essentially enjoy enhanced benefits, they often feel more valued by their employer.

They also enjoy a host of advantages that they may not otherwise experience. These include:

  • The ability to obtain coverage easily without a health assessment. This means that if you have a previous illness you do not face hefty surcharges or exclusions

  • A range of comprehensive benefits that individuals may otherwise not be able to afford when paying contributions themselves. This could include dental prostheses or visual aids for instance; both benefits named by employees as two of the most attractive components of Corporate Health Insurance plans

  • A relief from additional deductions such as taxes and social security contributions when an employee selects the benefit of Corporate Health Insurance over salary increases or a bonus

  • In most cases, the ability to also cover spouses and children as part of the Corporate Health Insurance Plan with only a very small additional contribution

  • Flexibility in times of no pay such as parental leave

The Benefits for Employers 

When it comes to offering Corporate Health Insurance, there’s a host of benefits for the employer. This can be seen throughout an entire life cycle of employment at a company. Starting from recruitment, through to being employed and being treated for an illness.

  • Firstly, offering such a benefit shows that a company has a sense of corporate social responsibility. It shows a genuine interest in the health and wellbeing of its workers. Of course, this is going to be a huge draw for potential employees and a highly effective way to recruit the best professionals in the market. Especially if these professionals already have a host of attractive employment options and job offers on the table.

  • Secondly, standardising the health care cover in your company with Corporate Health Insurance, provides the peace of mind that your employees are adequately covered in the event of sickness or injury. It also leads to stronger performance which is something that should be top of mind for all employers. Not only does offering a comprehensive health plan mean that employees will receive the highest standard of care, but it will also result in less sick days. And therefore, higher productivity and less negative impact on the company. Ultimately, employees with Corporate Health Insurance can enjoy higher job satisfaction. This leads to better performance and higher employer retention rates for the company.

What does Corporate Health Insurance Include?

The specific benefits of Corporate health Insurance vary depending on the company and its partner health insurance provider. However, common benefits include modules like these:

  • Dental prostheses and cleaning
  • Daily sickness benefit
  • Treatment from alternative practitioners
  • Vision aids
  • Travel health insurance

How Does Corporate Health Insurance Work in Practice?

The objective of Corporate Health Insurance is to offer a comprehensive level of health cover that is both uncomplicated for the employee and seamless for a company to facilitate. Key characteristics of a typical Corporate Health Insurance plan include:

  • The employer acts as the policyholder and pays the contributions. Its employees are the insured persons who can then claim the insurance benefits

  • The employer takes out pre-defined supplementary insurance cover for its employees which can consist of one or more collective agreements

  • The employer can segment employees by pre-determined tariff groups in order to differentiate the level of cover provided. For example, offering different levels of cover dependent on factors such as length of employment

  • The contractual framework is regulated by a group insurance contract between the insurer and the company

Employee satisfaction should be of high priority for any company and is something that can certainly be strengthened by the provision of Corporate Health Insurance. It’s clear that offering this level of health cover is also incredibly advantageous for an employer too.

If your company is ready to level up the health and happiness of its culture and Corporate Health Insurance is something you’re exploring, please get in touch with KLforExpats. We are able to navigate tax and legal matters, assist you in comparing the benefits of working with different insurance providers and broker the best possible offers available to suit the needs of your employees.

Still have questions about corporate health insurance?

Mirja Link-Lundehn

Get in touch with KLforExpats. We are available and ready to help

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