Changes in Medical Schemes for Salary Professionals


Changes in Medical Schemes for Salary Professionals
Bangalore: Companies are going for massive alteration in medical schemes in order to attract talent and keep the herd bonded at home. To put their plan into action, some are offering flexi packages while others are making concierges available. It is the weak economy that has to be blamed for crippling of increments and promotions. But the companies are now betting on health and medical benefits to restrain as many employees possible from shifting loyalties. Anand Shankar, CEO of Aon Hewitt India, said, "Medical inflation is shooting up and companies have realised this is the right thing to do. Not all groups run hospitals where an employee's healthcare bills are subsidised, so the next best option is to provide them with as many benefits as possible to keep competitors at bay," as reported by The Economic Times. With these little tweaks in health policies, the number of clients approaching has doubled in consulting firms compared to last year. A senior executive of a consulting firm said, "The window to keep giving compensation is closing and this has been a slow year. One cannot throw in increments and these are smart ways of working around it." Wipro Technologies have tweaked up its medical reimbursement policy to a great extent. The changes include rise in medical insurance from 3 lakh to 5 lakh at all levels, repayment for personal medical policies and OTC drugs, and the option of continuing with some of the policies even after leaving the company. The firm has gone through clauses where overnight hospitalization is necessary, because there are treatments that do not require the patient to visit a hospital for more than a few hours. The idea materialized from the fact that many of its employees have been deciding on for alternate therapies and treatments like in-vitro fertilization. Samir Gadgil, General Manager, Talent Engagement and Development, said, "In the past few months that the policies have been introduced, attrition has definitely been lower, but it is difficult to correlate this only with medical benefits."