Post Covid, corporates begin offering OPD benefits to employees

Corporate staff are increasingly receiving OPD cover from their employers.

Workplaces have become increasingly employee-friendly of late extending health benefits to staff which go beyond usual hospitalisation coverage. According to the latest report released by risk and human capital consulting firm AON India, based on a survey of 251 big, small and medium-sized companies, more firms are now offering primary care benefits such as consultations, medicines, lab tests and mental health counselling, compared to pre-pandemic days. 

Of the 251 IT, manufacturing, pharma, engineering, financial and other companies studied, only 40 were providing out-patient department (OPD) benefits in 2019. “However, in 2023, this number has grown to 85 companies. There has been a 51% increase in the number of companies offering these services,” said Shantanoo Saxena, Vice President, Health Solutions, AON India. 

While companies ususally onboard an insurance company for health cover (primarily for hospitalisation), Saxena says that increasingly companies are keen to adopt a digital approach for added benefits including tele consultation, access to lab tests, physiotherapy, dental and vision related issues, vaccination and so on. 

Mr. Saxena points out that the mental health component has now become critical and companies want to keep psychologists and doctors handy. “If somebody is not keeping well mentally it impacts performance. There is increased absenteeism and quality of work reduces. As a result, the business suffers,” he adds. 

He explains that companies start with providing access to psychologist, but they also offer employee assistance programmes and depending on severity of the problem, interventions are designed. Mental health consultations are covered in health insurance programmes on the OPD side. 

Companies are willing to spend anywhere between Rs. 1000 to Rs. 1,00,000 for outpatient plans, with 43% of employers opting for Rs. 10,000 annual OPD cover. “This includes two to three General Physician visits in a year, and balance is utilised on dental and vision sub-limits,” the AON report says. 

The definition of ‘health’ at the workplace is transitioning from illness to wellness, however, that shift is slow with the majority of companies, participating in the survey, not opting for OPD benefits.

“However we are seeing big tech companies adopting the wellness model where they deploy wellness solutions like access to mental health services, telemedicine, gym benefits, easy access to Chartered Accountants for filing tax, wealth managers for ensuring financial planning, lawyers in case there is financial and legal stress and so on as wellness depends on overall well-being of an employee,” Mr. Saxena explains. Not all companies roll out OPD benefits, but they eventually want to get there. 

Interestingly, while the utilisation of hospitalisation insurance is hardly 11%, over 50% of employees utilise OPD benefits. “OPD services are a high touch point product, and most companies surveyed are looking to build an integrated digital platform which will help employees access both hospitalisation and OPD as well as wellness services. When employees come on the platform they can submit a claim, do an engagement challenge like a Stepathon, get access to a network of gyms, swimming pools, sports activities and so on,” Mr. Saxena adds.