The COVID-19 pandemic has put the importance of health and well-being on the global map for companies. As we all work more and more from home, both the physical and psychological health of employees is slowly taking centre stage in companies' HR policies.
The tax authorities and the NSSO have also understood for some time that this is important. Concretely, two types of health insurance are exempted from social security contributions and taxes: hospitalisation insurance and outpatient care insurance.
What is hospitalisation insurance?
Hospitalisation insurance is insurance that protects an employee (and possibly his family) against the costs of an (unexpected) hospitalisation. This may involve day hospitalisation or long-term hospitalisation. In any case, with hospitalisation insurance you avoid unpleasant financial surprises from a stay in hospital.
(read more below the image)
What is the difference between hospitalisation insurance and ordinary health insurance?
An ordinary health insurance (with your health insurance fund) does not cover all medical costs. For example, a visit to a specialist or a hospital admission will only be partially reimbursed. The remaining costs are therefore for your own account and can sometimes be high. Think of supplements for a single room, fees, transport to and from the hospital, and so on. In those cases, hospitalisation insurance comes in handy for an employee.
What does hospitalisation insurance cover?
Each provider offers different covers and formulas. As an SME, it is best to pay attention:
- Whether the insurer does indeed cover all hospitals (including the more expensive ones);
- Whether the insurer applies an excess (and how high it is);
- Whether the insurer also reimburses costs incurred abroad; and
- What percentage of the costs incurred are reimbursed by the insurer.
Who can I take out hospital insurance from?
What is the tax impact of hospitalisation insurance?
Hospitalisation insurance is completely exempt from social security contributions and taxes. This ensures a nice financial extra for your employee.
Still not finished reading about health insurance? Read also our blog about the ambulant cost insurance.