Are group health plans a safety net or a blind spot?

In today’s competitive corporate landscape, employee benefits have evolved from being a differentiator to a given. Among them, group health insurance policies have become one of the most expected and appreciated offerings.

Yet beneath the surface of what appears to be a well-intentioned policy lies a growing concern: Are these group health plans truly serving the people they’re meant to protect?

For many organisations, the answer is more complex than it seems. Manju Dhake, Senior Vice President – Insurance Advisory, 1 Finance, said, “Group health plans are often designed with a focus on cost, compliance, or convenience. HR teams, under pressure to deliver across multiple fronts, may renew policies year after year with little insight into how well they are working for employees.”

The consequences aren’t always immediate. But over time, poorly structured plans can quietly erode employee trust, engagement, and overall well-being.

The hidden costs you don’t see on the balance sheet

• Unmet expectations: Employees may discover too late that their coverage doesn’t extend to what matters most to them.

• Underutilisation: Lack of awareness or complex terms leads to benefits being left on the table.

• Overload on HR: Poor design creates confusion, leading to more queries, more claims handholding, and avoidable stress.

• Missed wellness opportunities: Without integration into a broader wellness framework, the plan remains transactional.

Each of these represents a cost not measured in premiums, but in missed potential, both for the organisation and its people. “Group Health Insurance plans should not be viewed as just another procurement line item. It is a strategic lever — one that can power employee well-being, improve retention, and align with an organisation’s culture of care,” said Dhake.

Looking ahead: From coverage to care

As the future of work evolves, so must the intent behind employee benefits. “The future of work demands more than just perks — it calls for purposeful programmes,” says Dhake. A health plan can no longer be a default offering; it must be a deliberate, strategic choice.

Because in the end, what employees truly value isn’t just the assurance of being covered — it’s the comfort of being cared for.

It’s time to shift the perspective. Employee health cover should not be treated as an annual checkbox or a line item to optimise. It must be recognised as a vital pillar of organisational well-being — one that builds trust, drives engagement, and reflects a culture of care.

When thoughtfully designed, a group health plan becomes more than just protection — it becomes a promise. A promise that the organisation stands with its people, not just for them. The real question is: how many are willing to make that promise — and truly mean it?