Insurance stands as a great choice for many people. Today, many clients usually ask what is the group number on the insurance card? To this end, we have highlighted the answer to this question below. The group number is a unique identifier systematically requested from policyholders of group insurance in the event of a claim or administrative procedure. Thus, it is important to know what it is and how to find it.
Furthermore, many say that a company reflects its employees, so taking care of the team is a fundamental job that every manager must keep in mind. Offering group life insurance which comes with a group number, to employees is one way to do this as they are better protected in case of unforeseen events.
Today, America stands as one of the countries in the world in which the number of fatal accidents at work is high. This data, obtained from reliable sources, proves the importance of offering group life insurance to employees.
Therefore, in addition to investing in occupational safety, group life insurance with a group number is also essential. It has coverage against accidents or illnesses that result in death or disability. It is usually provided by firms as a benefit to their workers and can be customized as needed.
In many segments, life insurance must be guaranteed to workers. This obligation is part of collective category agreements made by unions or responsible bodies and, therefore, may vary according to the function and location.
What is the Group Number on Insurance Card?
As earlier highlighted, the group number on the insurance card is a unique identifier used to determine employees’ coverage and eligibility for certain services. Medical care providers also use it for billing purposes.
The group number on the insurance card identifies the employer that purchased a particular health insurance plan. It usually only appears on insurance cards that registered employers provided.
So if you purchased your insurance through the Healthcare Market or have a government-based plan such as Medicare, you may not see a group number on your insurance card. Your medical provider will usually use this for billing and plan identification purposes too.
Insurance Group Number: Where to find it on your Insurance Card
If you’re lost regarding finding your group number on your insurance card, worry no further. You can find this important number on the front section of your card. If it’s not written there, you will need to contact the customer service unit of your insurance firm.
Reasons for offering plans with group numbers on the insurance card
Competition between employers is fierce to attract and retain skilled labor. To improve their situation, employees no longer hesitate to change employers, just as they change cars! Several factors influence an employee’s decision, such as the challenges, the atmosphere, the possibilities for advancement, support and training, compensation, and social benefits.
While the group insurance plan is a staple of today’s employee benefits, it can be easy to lose sight of why it’s important. Here is a reminder of the main advantages of offering plans with group numbers on insurance cards for a company and its employees.
Benefits of Insurance Group Number for the Employee
Protection without evidence of insurability
An employee who takes out group insurance protection for death or disability will be covered regardless of their past and current health conditions up to a certain amount stipulated in the contract. In addition, group insurance generally costs much less than individual insurance.
Thus, setting up insurance with a group number within your organization ensures financial security for your employees and their families at a reasonable cost.
Extended protection for specialists and medical costs
When we refer to the health care guarantee of a group insurance plan, people mainly think of drugs. Granted, they represent a large portion of claims, but it should be remembered that there are several other types of fees included in a plan.
Most contracts offer paramedical specialists (massage therapists, psychologists, chiropractors, physiotherapists, etc.). We can also find protection for several other costs (orthotic, prosthesis, CPAP, diagnostic test, etc.)
Without group insurance with group numbers, it’s a safe bet that some of your employees would not take as much care of themselves. For example, some will not see a physiotherapist or chiropractor without insurance, even if they have back pain.
For the employer, this can lead to a loss of productivity, absenteeism, or even death. Offering plans with group numbers on insurance cards will allow your employees to access better health care and be treated more quickly.
Cost-sharing with the employer
In America, employees without group insurance pay a premium to the public drug insurance plan of up to $ 662 per year. Employees no longer pay this premium when they have access to a group insurance plan with a group number.
Rather, they assume part of the insurance premium. The common practice in America is that employers pay 50% or more of the premium. Thus, your employees will have access to a much more generous plan for a few hundred dollars more per year.
Better drug insurance protection
As stated above, drugs represent a large part of health care, and unfortunately, the public drug plan is not very generous.
In some other provinces, some people do not even benefit from basic protection. Most group insurance plans with group numbers offer the drug insurance coverage is generous, with 75% and more reimbursement percentages.
Benefits of Insurance Group Number for the Employer
Protect your investment
Labor represents an important part of the expenses for a large majority of companies. Your main asset is your employees! An employee who does not consult for a health problem risks being absent, it is for back pain, a mental health problem, or another reason.
Pay yourself salaries, invest in training, you need your employees at work! Also, disability insurance allows employees to focus on their rehabilitation and ensure they return to work healthy and as quickly as possible. Group insurance with a group number is a clear way to protect your most valuable assets.
According to a platform specializing in virtual medicine, and an employee assistance program it is estimated that absenteeism costs can range anywhere between 2-5% of payroll for organizations every year. Minor health problems would cause 33% of these costs.
As the access to a family doctor is still problematic today, virtual medicine clinics and employee assistance programs are great solutions to reduce absenteeism. Group insurance with group numbers is evolving, and providers are offering more and more services to meet needs.
Foster employee retention and attraction
Group insurance with group numbers is an important part of the total compensation of employees. It promotes engagement and increases employee satisfaction.
According to a recent study, compensation and benefits are positioned at the 5th level of the reasons that cause an employee’s departure. By offering good benefits, you will set yourself apart from your competitors and facilitate the attraction of new talent while improving the retention of your current talents.
Frequently Asked Questions
What is group life insurance for?
As previously mentioned, group life insurance is a benefit that companies can offer their employees to ensure their protection in case of accidents. Furthermore, it is also a way to differentiate these companies in the market and, consequently, to attract and retain talent.
Regarding the insured party, group life insurance serves as a kind of guarantee, as it ensures that, should something happen to him, his family members will not be left unprotected. The coverage offered by group life insurance is:
- Serious diseases;
- Medical, hospital, and dental expenses (DMH);
- Funeral insurance.
Is the policy number the same as the group number?
No. Your policy number refers to your member ID. On the other hand, your group number refers to the ID assigned by your employer or insurance firm.
Do all insurance cards have a group number?
No. Even though its merits, not all insurance cards come with a group number.
Who can take out group life insurance?
Firms of all segments and sizes can hire group life insurance. Associations, Unions, and clubs can also purchase the service.
The minimum number of lives included in a particular policy is determined solely by insurers and may vary. Their offer is usually flexible and comes in diverse formats to suit organizations of different sizes. Furthermore, the minimum amount required to take out collective life insurance is usually three people.
Who is an insurance broker?
An insurance broker is a company authorized to sell insurance and act as an intermediary in the negotiation between the contracting party and the insurance company. The broker takes care of all the bureaucracy and ensures that the parties comply with the agreement. A good broker also guides the client in choosing the insurance that best suits their needs.
In conclusion, group insurance comes with diverse merits. And if you are among those who usually ask for the group number on the insurance card, the highlight above will aid you immensely.
Nicholas J. Banks has been an expert in the Insurance industry for over 10 years. He is well-versed in all aspects of insurance, and he has worked on Allstate Ins Group since 2006.
He attended the University of Pennsylvania with an undergraduate degree in Business Administration, followed by a Master’s degree from the University of Southern California to further his career in Insurance Management.
His experience working with many different companies has helped him develop valuable insight into how to succeed in this exciting field, which he now shares through our blog “Pro Insurance Info.”