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 awarethat medical costs will continue to increase over time. Based on Willis TowersWatson survey data, in 2020, the increase in health costs in Indonesia reached11% per year.

The healthof employees is certainly something that should not go unnoticed by theemployer because employee productivity will greatly affect the company'sperformance.

However, ifthe company decides to cover the medical expenses of sick employees, it islikely that this will increase operating expenses which in turn will reduceprofits.

One solutionto mitigate this risk is of course by providing insurance for employees, butbefore deciding to provide this facility, please be aware of the following:

Whatis a Group Insurance Policy?

Groupinsurance policy is an insurance policy issued by an organization that buysprotection for a particular group or groups. In a group policy, one contractwill cover more than one individual or family.

The employeeis not the party that makes and is entitled to receive a copy of the mastercontract, but the company has that position. However, employees will be givenan “insurance certificate” from the policy holder, which in this case is thecompany.

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.

Theprocess of identification and selection of employee insurance risks differsfrom that of individuals

The processof identifying and selecting risks or underwriting group insurance is differentfrom that of individuals. As is known in this process, there is a review of thefactors that affect the health risks of the Insured candidates (employees).

For example,in employee health insurance, the insurance company will assess the risk of agroup of employees.

Severalfactors that can influence the estimated morbidity rate of a group of employeesinclude:

• The nature of the industry in which the insured candidateswork Age distribution in the group, the older the age, the higher the morbidityrate
• The distribution of men and women in the employee group, thisis because even at the same age, the morbidity rate of women tends to be higherthan that of men.
  
  

EmployeeInsurance Will Become a Tandem BPJS Health

TheGovernment through Government Regulation (PP) No. 86/2013 concerning Proceduresfor Imposing Administrative Sanctions to Employers Other Than State Officialsand Everyone, Apart from Employers, Workers, and Contribution AssistanceRecipients in the Implementation of Social Security, has determined that BPJSHealth can be used to pay for medical expenses that cannot be covered by healthinsurance from the company.

Almost alldiseases will be covered by BPJS, however, the treatment process using BPJS canonly be done at health facilities (faskes) where the employee's name isregistered. If they have to go to a specialist, the employee must go to thehealth facility and ask for a referral from a general practitioner first.

With healthinsurance, employees will be helped in terms of flexibility in treatment. Thereason is, insurance can be used at any time without a referral from a certainhealth facility, as long as the clinic or hospital you are aiming for hascollaborated with an insurance company.

It isbetter if employee insurance is equipped with disability and life incomereplacement benefits

The morecomplete the benefits of employee insurance, it shows that the company's levelof concern for employees is quite high.

In additionto reimbursement for medical expenses such as hospitalization, outpatient care,and medicines, employers can also consider employee health insurance facilitiesin the form of disability income and life protection.

Disabilityincome insurance can be defined as a health insurance program that providesincome replacement for the insured who is no longer able to work, due to anillness or accident. The higher the risk of work owned by employees, it isbetter for the company to consider providing this insurance.

With theexplanation above, hopefully you will understand more about the insuranceprovided by the company.

In essence,the need for protection is no less important than a salary increase. Due to thehigh cost of medical treatment, it could be something that interferes withfinancial conditions even though they already have a sufficient salary.