By Amrit Singh
In today's fast-paced world, where businesses are constantly striving for growth and success, employee health is often overlooked. However, the link between the health of employees and the success of a company is undeniable. Health Assurance is an innovative approach that aims to drive better health outcomes for employees, focusing on prevention rather than just treatment. By combining preventive healthcare with traditional health benefits, Health Assurance can have a transformative impact on the well-being of employees and, in turn, on the overall success of a company.
Understanding Health Assurance
Health Assurance goes beyond traditional healthcare practices. It is not just about caring for the sick; rather, it emphasises preventing diseases before they occur. By providing empathetic medical care and building trust with individuals, Health Assurance aims to improve the overall health and happiness of employees and their families. In India, Loop is the first health assurance company which has set an ambitious goal of improving the lives of 10 million families by 2030. Loop's focus on preventive care and better health outcomes aligns with the philosophy of Health Assurance.
The Impact of Poor Health Outcomes on Businesses
Before delving into how Health Assurance can help companies drive better health outcomes for their employees, it is crucial to understand the significant impact of poor health outcomes on both individuals and businesses.
Impact on longevity and happiness
Health and physical well-being play a crucial role in people's happiness. Unfortunately, despite the increase in life expectancy in India, the quality of life has been compromised due to poor health. This is reflected in India's low ranking (136th) in the UN World Happiness Report.
Lower economic growth
Human capital, which includes health, skills, knowledge, experience, and habits, is integral to economic growth. Countries with better human capital improvement have registered higher annual GDP growth rates. India currently ranks low in human capital (158th out of 195 countries), which indicates possible hurdles in the path of productivity and economic growth.
Lower productivity
Poor health leads to lower productivity in the workplace. Absenteeism, presentism, and permanent withdrawal from the workforce are major factors contributing to reduced productivity. Mental health issues, in particular, have a significant impact on employees' ability to work effectively.
The Case for Preventive Healthcare
Poor health outcomes have a detrimental effect on businesses, which is why investing in preventive healthcare can be a game-changer for companies. However, there are several reasons why preventive healthcare is often ignored:
Limited Data on employee health
Companies often lack comprehensive data on their employees' health and wellness, relying mainly on sick days and hospital claims. This limited view hinders the development of effective preventive care programs.
Limited Awareness
Employees may not fully understand their health benefits or how to use them, leading to underutilization. The perception that health benefits are only for insurance purposes also contributes to the lack of emphasis on preventive care.
Limited Access to quality and trustworthy healthcare
Employees may face challenges in accessing quality medical professionals or getting timely second opinions for critical health decisions. When it comes to taking major decisions regarding healthcare, employees often find themselves looking for second opinions. Third-party medical advice often faces a crisis of credibility.
Limited Adoption of health benefits
Low engagement in health activities and limited use of cashless hospitals can hinder the effectiveness of existing health benefit programmes. Getting a medical claim processed also requires a lot of help from the HR team, adding to the complexity of the procedure.
Difficulty in changing lifestyle habits
Post medical consultation, several people find it hard to change their lifestyle and habits without proper guidance. The extent of the necessity of these changes is often overlooked by people, thus leading to ineffective preventive healthcare.
How Health Assurance Can Benefit Companies
Health Assurance can address the limitations of traditional health benefit programs and significantly benefit companies in various ways:
Cost Savings
Studies have shown that investing in preventive healthcare can lead to substantial cost savings for companies. The 1 rupee spent on preventive healthcare can save Rs 6.62 in healthcare costs and Rs 133 in absenteeism costs. By focusing on prevention, companies can reduce healthcare expenses and improve their bottom line.
Improved Productivity
Healthier employees are more productive and motivated. By providing access to preventive care, companies can reduce absenteeism and presentism, resulting in a more engaged and efficient workforce.
Stronger Employer Brand
Health Assurance can enhance a company's employer brand by demonstrating a genuine concern for employee well-being. Employees are more likely to stay loyal to a company that prioritizes their health and happiness, leading to increased retention rates.
Better Data and Decision-making
By implementing Health Assurance programs, companies gain access to valuable data on employee health trends. This data can help organisations take proactive measures to address potential health challenges and create tailored wellness programs.
Direct Financial Impact
Health Assurance provides free or highly subsidized access to healthcare services, reducing the financial burden on employees and saving costs for the company. For example, the company saves money on doctor consultations when employees utilize free or discounted services through Health Assurance.
Culture of Wellness
Health Assurance promotes a culture of wellness within the organization. Employees are encouraged to prioritize their health and well-being, leading to a more vibrant and productive workplace.
Improved Hiring and Retention
Companies with robust health benefits and wellness programs are more attractive to potential employees. Health Assurance can set a company apart from its competitors and aid in attracting and retaining top talent.
Afterword
Health Assurance presents a paradigm shift in how companies approach employee health. By focusing on prevention, building trust, and providing empathetic medical care, Health Assurance can drive better health outcomes for employees and their families. The benefits extend beyond just healthier individuals; companies also experience cost savings, improved productivity, and a stronger employer brand. As more companies embrace Health Assurance, it has the potential to transform the workplace and foster a healthier, happier, and more productive workforce.
The writer is the co-founder and CRO at Loop.
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