Finding the cheapest medical insurance for small businesses in the Kingdom of Saudi Arabia Blog Image

Finding the cheapest medical insurance for small businesses in the Kingdom of Saudi Arabia

2 March 2024

Small firms stand behind the success of the Saudi economic system. They in all industry sectors employ millions of people. The enterprises do it well though the one vital area that are left is off is medical insurance. This article is going to review the essentiality of cheap medical insurance for small businesses in Saudi Arabia and how it can affect both employers and their employees positively.

Medical insurance is the vital tool in facilitating the good health of employees, among other things, by providing access to high quality healthcare services. Offering health insurance to small companies assists in improving employee engagement, retention and productivity levels. That is so because amid the challenges posed by the long and complicated choice of health insurance schemes, small business owners struggling with scarce resources obviously will find it overwhelming.


The importance of having health insurance for employees


1.       Employee Well-being: Since a business can be its people. Giving workers a type of health insurance as a show of caring for their overall health is a sign that the company understands and cares about them. Insurance on health is a financial shelter for unexpected medical expenses, leaving room for employees and their families to be safe from unforeseen circumstances.


2.       Attraction and Retention: In such conditions, health insurance becomes an important tool for employers since it influences the choice of job seekers that is evaluating the opportunities. Through a polling by Glassdoor, more than half, almost 60%, stated that having good and various benefits and perks are one of the factors when choosing what jobs to apply for. Since employees will have medical insurance under this scheme, employers will be able to hire world-class workers and retain current employees for long periods, thus lowering turnover rates.


3.       Productivity and Morale: Employees with good physical and mental abilities are more efficient and committed to the work they do. Conversely, the possibility of seeing a medical specialist enables preliminary care as well as early treatment, causing the lowering of absenteeism while increasing productivity. Additionally, being reassured that they are taken more as human beings, their employers really care about their health can revitalize employee morale and general job satisfaction.


4.       Legal Compliance: The legal procedures may differ from one jurisdiction to another, thus leaving it to each specific area to provide health insurance for their employees. Thereby the rules help not only to get out of penalties but also display a spirit of doing business at ethical standards. In other words, the rules confirm the exemption obligations and guarantee the legality of the business running.

 Types of health insurance plans available for small businesses

1.       Health Maintenance Organization (HMO) Plans

2.       Preferred Provider Organization (PPO) Plans

3.       High Deductible Health Plans (HDHPs) with Health Savings Accounts (HSAs)

4.       Exclusive Provider Organization (EPO) Plans

5.       Catastrophic Health Insurance



Factors to consider when choosing a health insurance plan


·         Coverage Options: Check provided services medical insurance. Finding a policy covering doctor’s visits, hospital stays, prescription drugs, preventive care and specialist consultations should be a primary thing to be aware of.

·         Costs and Premiums: Weigh in the premiums, deductibles, copayments, and coinsurance that are featured in various plans. On the one hand, it would be the case of the scheme with relatively low premiums, likely substituted with the elevated out-of-pocket expenses requirements as soon as it’s your time to seek for medical assistance.

·         Out-of-Pocket Maximums: Remember that the maximum amount of money that you'll have to pay for covered services like doctor visits or hospital bills has a "limit" which you'll have to take into account during the policy period.

·         Quality of Care: Do they said research on the quality ratings and customer experience of insurance firms and their network providers.

·         Additional Benefits: Further cover the plan plus other benefits like the gym access, telemedicine, and nurse hotline, wellness programs.

How to determine the needs of your business and your employees


Evaluate Business Needs:

Assess first the custom specifications your business considerably places emphasis on. Think through elements like the number of employees you're going to have, the kind of industry you operate in, and the sort of legal requirements for giving employees benefits in case there are any.


Consider Budget Constraints:

In terms of offering families all-inclusive medical insurance, it's also noteworthy to take into account your pocket limits. Consider insurance policy plans that give prospects many affordable options with ample coverage.


Survey Employee Preferences:

Embedded in this fact is the reality that your employees are the ones driving your business and because of this it should therefore be non-negotiable that their overall wellbeing is a primary factor.


Prioritize Coverage Benefits:

Plans for medical insurance could be varied from the simplest one to covering all needs, and from the cheapest which includes only basic standard of care to the most expensive which includes all the available care.


Explore Affordable Options:

The best price of medical insurance from workers is only obtainable by performing market research and comparing plans by different employers. It is recommended that you consider comprehensive plans which provide bulk discounts, affordable deductibles, and co-payments without compromising on quality.


Tips for negotiating better rates and discounts with insurance companies


·         Understand Your Needs: Make sure that you know your needs and prioritize them by going through negotiation beforehand. Identify the area of coverage that fits the nature of your business operations, namely facilities, and their critical services as well as any additional services that could be of interest. Awareness of your needs gives you the advantage of representing yourself by negotiating from a well-prepared position.


·         Research and Compare: Try to find insurance firms and the insurance policies in your area. Find out how much coverage they provide, what premiums are, what deductibles they have, and other important details. Recognizing your own capability, on both the strong and weak sides, contributes to your negotiating skills.


·         Leverage Competition: Employ the data accumulated via your exploratory research with proper diligence. Explain what competitors are offering and say that you will change providers if a discount is not offered. Agencies sometimes desperately want to keep customers to whom they are already providing services or to be secured by prospective clients, which mostly occurs in competitive environments.

Case studies: Successful implementation of affordable health insurance plans


Real-life examples of small businesses in Saudi Arabia that have found cost-effective health insurance solutions


Café with Group Health Insurance: For instance, a coffee shop in Riyadh could have a bulge of 15 employees. By forming together with other companies as a group health insurance plan, the café owner can offer an affordable health insurance plan for its employees.


Family-Owned Retail Store with Self-Insured Plan: One retail store owned by a family in Jeddah went for self-insured health plan to the extent of controlling the costs and addressing the needs of the employees by tailoring the plan for their own use.


Tech Startup with Telemedicine Benefits: A dwarf technology company in Dhahran saw the effect of telemedicine on affordable health access for the population it catered for. While seizing the opportunity to provide virtual health care solutions, the startup cooperated with a telemedicine platform that ensured doctors were available through phone or video calls.


Construction Company with Health Savings Accounts (HSAs): As a measure to improve health care coverage, a HSA model was rolled out by a construction company based in Jeddah as part of its employee health care benefits cover.


Benefits made by companies and employees after implementing a health insurance plan


1. Enhanced Employee Well-being and Productivity:

Companies: Employees who are well fit into the organization they work for tend to take fewer sick days off and thus there are higher rates of productivity. Employees will become able to seek medical care for their health problems immediately, therefore the infer ability of prolonged absenteeism decreases in cases where employees have an untreated condition.

Employees: Employees then strive to take good care of themselves knowing they can speak to a professional and get affordable health check-up services. Regular screening and preventive care provide an environment for identifying health issues at early stages and as a result - employees will be in better health overall and productivity at the workplace improved.


2. Attracting and Retaining Top Talent:

Companies: Having a health insurance package is much advantageous to companies because it provides a competitive edge among job seekers. It has proven to be a remarkable resource for selection of highly gifted personnel in companies with low retention rates.

Employees: Job candidates acknowledge that they will sometimes pick a position over another with odds of better healthcare coverage. Companies that care about the well-being of the workers are more competitive in the labor market in terms of hiring and workforce retention more so than others who do not make a priority of employee wellness.


3. Financial Security for Employees:

Companies: Amended the workforce improves the health system in a company and reduces the health costs in the future. Employers can go further by sponsoring preventive care through healthcare insurance. In this way, they can prevent the financial burden that emanates from unaddressed health conditions.

Employees: The insufficiency of health care coverage may be a reason for the looming financial problems of employees that can be caused even by medical emergencies or sudden illnesses. Having a health insurance plan that covers the health expenses of employees, they are able to enjoy the awareness that they have some financial security and as a result, reduce the level of financial stress.

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