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Published on the 25th October 2023

How Does Business Health Insurance Work?

Reading Time: 6 min read

How Does Business Health Insurance Work?

Given that ill health disrupts our capacity to work and enjoy the fruits of our labour, it’s no surprise to see an increasing number of businesses offering health insurance within their benefits package.

Such policies undoubtedly will work for a number of employees. However, they may not include a level of coverage that’s relevant to your own needs, or those of your family. Here, we’ll take a look at business health insurance and what individuals need to know when it comes to protecting their interests.


  • What is Business Health Insurance?
  • How Does Business Health Insurance Work?
  • Who Pays for Business Health Insurance?
  • FAQs
  • Conclusion

What is Business Health Insurance?

Business health insurance is no different to any other form of health insurance. It entitles a person to claim emergency healthcare that isn’t covered by a particular country’s health system. Depending on the policy, it may also enable persons to claim medication needed for long-term health conditions. 

Only some business health insurance policies cover permanent or long-term health conditions. It’s worth discussing this with your employer to understand what you are fully covered for

The main difference between a business’s health insurance and an individual policy is who pays. A business plan is usually paid for by an employer to cover any health issues for their employees.

Such a plan benefits businesses by ensuring employee health is at full capacity, so they can perform at their full capacity. Offering health insurance to employees can act as a carrot to potential workers. This would help to attract and then keep the best talent available.

A survey showed that 2/3 of employees who were satisfied with their company benefits package also rated personal morale as excellent or very good. Happy employees are more likely to work hard and stay long-term, greatly reducing turnover costs.

How Does Business Health Insurance Work?

These plans largely work without involvement from employees. This involves a company agreeing on a policy with a health insurance provider. New employees will be enrolled on the scheme automatically.

As an individual employee, it’s worth reviewing any health insurance policy that a business has arranged for you. All of us are different, with differing needs and responsibilities. The policy your employer has set for you may benefit some but not others.

If the business you work for is small, it may have a less comprehensive health insurance policy than you require. Double-check to see if your needs are covered and whether you should sort out any additional personal insurance only for you and your dependents.

Remember, those living in most European destinations also have the option of a European Health Insurance Card to cover some costs regarding healthcare when travelling.

Who Pays for Business Health Insurance?

Generally, a business will cover all costs relating to its corporate health insurance policy. But it’s worth reading any small print to ensure this is the case. In some instances – usually with small business health insurance – a firm may offset some of the charges to its employees.

These may include charges relating to dependents or exceptional cases, such as a long-term health condition. In some circumstances, employees may have to pay a percentage of the insurance premium. However, this is often balanced by employer contributions to ensure a policy benefits all.


  • What is the Highest Level of Health Cover?

Levels of health insurance differ from one insurer to the next. They also shift according to the country you happen to find yourself in.

Some countries, such as the UK, have a public health system (the NHS). Others, such as the US, have no public system at all. Even within Europe, you’ll find one public health system to offer different levels of free care to another.

GasanMamo offers a range of insurance policies; these options include our highest level of health insurance, our international plan. This includes a full refund of fair and reasonable fees for in-patient and day-patient treatment for any destination except the US and Canada. However, Maltese citizens can also claim the same level of coverage in these countries as they are entitled to claim in Malta, up to a €50,000 maximum. A family health insurance plan can give all of your dependents the same entitlement should it be needed.

  • What Insurance is Most Important?

There are many opinions regarding insurance, but it’s a fair argument to list health-related policies as the most important. After all, good health is the foundation of the rest of our lives balance upon.

Just one healthcare incident can derail our lives and potentially leave us in debt too. Health is arguably the most essential form of insurance, given it can assist us in becoming well again without getting into debt. Given the cost of care in the likes of America, insurance is a complete necessity, and research shows that around 50% of Americans have a health insurance policy paid for by their employer.

  • What is Premium in Insurance?

A premium is the cost of an insurance package. In most circumstances, an individual will pay a pre-agreed premium to their insurance provider in return for a specified level of coverage. With health insurance organised by your workplace, the employer usually pays that premium in total.

Although, employees may have to pay a percentage when making a claim. It’s generally true to say that the higher the coverage an insurance package includes, the higher the premium paid.


Health insurance is a vital consideration for most of us, given the cost of care in many countries, the waiting times for non-emergency operations, and the cost for those needing regular prescriptions.

With business health insurance increasingly being included as part of a company’s benefits package, employees would study the finer points of their provided policy. This is to ensure it covers both their needs, their partner and wider family.

Begin your own search for the right plan by looking through our clear and transparent benefits on our health insurance page.

GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.