Companies are withdrawing health insurance cover facility for employees' parents under group mediclaim policies citing rising costs, an Economic Times report said. Parental cover, routinely provided by companies around five to six years ago, is now sponsored by employers in just 36 per cent of group covers.
In almost every employee benefit group policy where parental cover is included, a bulk of the claims is not from employees, but for treating their parents. It is obvious that companies are discontinuing the cover to prevent their premium bills from galloping every year.
According to an employee health and benefits study by insurance broker Marsh, only 36 per cent organizations now sponsor cover for dependent parents under employee group mediclaim policies.
Read the full report here