Perception of SMEs in India towards Employee Health Insurance Plan

Abstract

Small and Medium Enterprises must consider all the aspects of employee health insurance. Factors influencing the decisions on employee health insurance plans include the total number of employees, insurance plan, employee age, risk factors, advertisement, and influence of healthcare mediators. The objective of the research is to identify the elements that influence the decision of Small and Medium Enterprises while opting for employee health insurance. A sample survey among 60 SMEs located in the Pune region was conducted to determine the perception of SMEs toward employee health insurance plans. The respondent SMEs belonged to various sectors such as Information Technology, manufacturing, consultancy, fintech, and healthcare. Statistical tests like Chi-square and Independent Sample T Test were conducted to obtain the results of the study. The decision to pick an employee health insurance plan is not influenced by the sector of SME. SMEs with a higher number of employees consider purchasing health insurance plans for employees. The conclusions were established that the decision to cover an employee's family members under an insurance plan is independent of the type of plan. SMEs consider employee health insurance vital as it provides additional benefits and helps employee retention. The study is apprehended to benefit health insurance companies in framing insurance policies for employees of SMEs. The study will also benefit in deciding the awareness schemes for health insurance plans.