Group health insurance in Cyprus in 2026. A complete guide on group health insurance in Cyprus
June 30, 2023
Ian Westwood
June 30, 2023
Ian Westwood
Group health insurance is a type of medical insurance plan offered by an employer to its employees and family members. It is an attractive health insurance option with many advantages compared to a standard individual policy.
Like most standard health insurance, a group health insurance policy covers medical expenses for cases of disease or accidental bodily injury.
This article will guide you through all of the available group health insurance options in Cyprus.
We will help you choose the product that corresponds to your company’s needs, and we will also help you to save hundreds of euros by selecting the best plan for your employees.
Specifically, we will examine the following topics:
Generally, group health insurance is a health plan an employer offers to employees (and their families) that provides health coverage.
A group health insurance policy covers medical expenses in case of disease or accidental bodily injury.
By default, group health insurance plans cover inpatient expenses (hospitalisation), and it usually comes with an option to cover outpatient expenses.
In Cyprus, health insurance is provided by two sources, government GESY and private insurance companies.
Assessment of the cost and defining the terms
Initially, a questionnaire should be completed by the Human Resources department of the applicant stating the following.
Then you can choose whether you want outpatient, dental and vision coverage in addition to inpatient coverage (as inpatient coverage is part of all group health insurance plans).
You should also declare whether your employees spend a significant amount of time in Cyprus and whether they want to receive inpatient and outpatient medical treatment outside Cyprus.
Medical card.
Each employee and dependent will receive a health card once the company acquires insurance. The medical card has the contract’s policy number on it that they can use during visits to clinics.
Today, most of the health insurance providers have stopped issuing a physical plastic card to contribute to the protection of the environment. Instead, they send a welcome email (letter) to all the employees of the company.
To this email is attached the certificate of insurance of each employee. The employees when they visit a clinic they should mention the name of the insurance company and the serial number of their insurance certificate.
Claims.
In some cases, the insurance company pays the expenses directly. In other cases, the patient pays for the expenses and then is compensated by the insurance company after providing their receipts and documentation. We will elaborate on the claim process below.
Termination of insurance.
Group medical plans usually have an age limit of 65 years old. Nevertheless, most of the providers provide an extension until the age of 70 in case of postponement of the retirement age. After the age of 65, insurance companies might require medical exams and might increase the premium.
The coverage is also terminated when an employee leaves the company.
Some insurance contracts allow one to acquire private medical insurance without waiting periods and medical exams after leaving a company.
Minimum employees for group health insurance
The minimum number of people who can be part of one group health insurance for employees policy is a minimum of 3 people for international insurance companies and 5 people for local insurance companies.
There is also the possibility to insure multiple companies with less than 3 employees if the sum of their employees is higher than 3 and if these companies are economically related (i.e. they have common shareholders or they are part of the same group).
As mentioned above, group health insurance plans cover expenses related to a disease or an accident.
As explained below, some diseases and accidents might not be covered under certain conditions.
Group health insurance coverages are divided into two large categories:
Inpatient expenses
Inpatient expenses are the costs related to hospitalisation for a minimum of one night in a private clinic.
This cost includes all other expenses related to staying in the clinic, e.g. the diagnostic exams before an operation (i.e. x-rays and blood exams) and the exams after the operation (i.e. x-rays and rehabilitation).
Examples of inpatient expenses
Pre & post hospitalisation expenses
Pre-hospitalisation expenses are medical care costs incurred by the insured before admission to a hospital (e.g. diagnostic tests).
Post-hospitalisation expenses are medical costs incurred by the insured after getting discharged from the hospital (e.g. physiotherapy, x-rays etc.).
Most local Cypriot insurance companies do not include pre & post hospitalisation expenses in their standard packages. These coverages can be inlcuded with an additional cost. In the case they are not included they are covered by the outpatient expense coverage.
Outpatient expenses
Outpatient involves the expenses that take place outside of a hospital.
These expenses include routine services such as check-ups, clinic visits, medicine prescriptions, physiotherapy sessions, minor operations that don’t require hospitalisation, home care and hospice care.
There are two ways to classify medical insurance policies.
1st classification: inpatient and outpatient coverage
The key difference here is that inpatient expenses require hospitalisation while outpatient expenses do not.
Cost-wise, plans covering outpatient expenses as an addition are usually 20% – 55% more expensive than plans that cover only inpatient expenses.
We recommend that companies acquire premium group health insurance with international inpatient coverage but limited outpatient coverage since all employees living permanently in Cyprus should be registered in GESY (General Health System of Cyprus) and have access to free health care.
In general, outpatient expenses are also not so complicated; there typically aren’t long queues to be seen, and visiting a specialist doctor or clinic is usually unnecessary.
2nd classification: international group health insurance and local policies
Below, we will elaborate on the main differences between group health insurance plans provided by Cyprus-based and international insurance companies.
Cost: International companies are generally more expensive than local providers. They can be 20% – 250% more expensive, depending on the insurance plans we compare.
Limits of liabilities: International group health insurance provides higher coverage limits for outpatient and inpatient treatment.
Outpatient expenses: Another vital difference between local and international policies is that local policies do not cover outpatient expenses outside of Cyprus.
Some local companies advertise that they also cover international outpatient expenses, but to do that, they require the following:
The above is why we recommend companies with employees who often return to their country of origin and prefer their medical services acquire an international medical insurance plan.
Claim handling satisfaction: International health policies have a claim satisfaction ratio of 95%. Local health policies have a claim satisfaction ratio of 80%.
It’s known that international companies protect their reputation at all costs, while local providers try to save money where possible – this is especially apparent with obscure claims.
International companies’ claim satisfaction ratio is the main reason why their health plans are more expensive than local plans.
Claim handling procedure for group health insurance Cyprus
Local Cypriot companies – Outpatient expenses
For outpatient expenses, claimants must pay the clinic directly, collect all the relevant documentation (exams, payments, receipts, x-rays etc.) and present them to the insurance company.
Some companies require the original documents, while others accept scanned copies.
Additionally, you must complete a numbered claim form and provide all the relevant documentation to the insurance company.
The patient should complete the first part of the claim form, and the doctor should complete the other half.
Some insurance companies in Cyprus offer the possibility to manage claims through online portals. However, there are limitations for outpatient expenses that exceed €250. These expenses must be sent directly to the claims department of the insurance company.
Local Cypriot companies – Inpatient expenses
Local Cypriot companies cooperate with a network of local clinics. For inpatient expenses, you don’t need to complete any claim forms.
The inpatient expenses are paid directly by the insurance company.
If a local clinic does not belong to the insurance provider’s network, then you need to pay in advance, complete a claim form, and the insurance company will compensate you.
By default, clinics outside of Cyprus do not belong to the networks of Cypriot insurance companies.
International companies – Outpatient expenses
For outpatient expenses, claimants must pay the clinic directly, collect all the relevant documentation (exams, payments, receipts, x-rays etc.), and present them to the insurance company.
In this case, the insurance company does not require the original documents.
In most cases, there are no claim forms. International companies have online systems (with mobile application versions) where you can upload all the documentation without needing to write anything.
Some international providers also give you a “debit card” that can be used to pay for outpatient expenses up to €5,000. Although, this option is extremely rare, and the premiums of these insurance companies are significantly higher than others.
International companies – Inpatient expenses
International companies cooperate with an extensive network of clinics.
It is rare for patients to pay expenses in a clinic. Instead, the insurers directly pay the bills.
Letter of guarantee
In some cases, clinics in Cyprus might request a letter of guarantee from the insurance company before proceeding to ensure the operation can be paid for.
The clinics send the doctor’s report to the insurance company and the expected cost of the operation to ask them whether they are willing to fully cover the cost.
If the insurance company does not cover the whole cost of the operation, the patient has to pay the rest.
Clinics usually request a letter of guarantee from local insurance companies since international companies have a much larger capacity and a higher likelihood of paying claims.
Group medical insurance pre-existing conditions and exclusions
We will first explain the underwriting process to help you understand what might be excluded from your group medical insurance.
Underwriting is the assessment of the medical condition of each employee (or family member) and whether to insure them, under which conditions and what premium they will receive.
In simple terms, underwriting is the process of determining the premium amount and the terms of whether to insure someone or not.
There are three ways that insurance companies assess the medical history of the employees.
Full underwriting
Full underwriting involves the insurance company requesting the employee’s entire medical history until the present day. Medical history includes past and pre-existing conditions.
Let’s analyse how insurance companies define past conditions to understand full underwriting.
Past conditions
Past conditions are conditions from which the patient fully recovered, i.e. they returned in the same condition as before the disease or the accident and had no further medication or treatment regarding this accident/disease.
For example, a patient injured their right knee ten years ago and fully recovered without any aftereffects (they don’t currently receive any medication or have any transplants, titanium plates, screws, etc.).
In that case, local providers might include an exclusion relating to the operation (i.e., they will exclude the right knee from any future accident or disease) or fully insure the patient (including the right knee) but with a higher premium.
On the other hand, international underwriters will probably insure you without any exclusions or higher premium.
With full underwriting, employees with severe pre-existing conditions will be excluded from the coverage regardless of whether the insurer is local or international.
For employees with non-serious past and pre-existing conditions, international companies will be more lenient.
In addition, healthy employees over 50 years old will not be required to provide updated medical exams with international insurance companies.
Full underwriting is the strictest version of underwriting when it comes to assessing a group of employees for a group health insurance policy.
Moratorium
Moratorium means that the insurance company is only interested in the past and current conditions in the last five years.
If there were no serious conditions in the last five years, the insurance company will insure without any loading (i.e. increased premium in comparison with the standard prices) and will disregard any incidents prior to the last five years.
Group health insurance Cyprus, current conditions 1
If you have suffered from a medical condition in the last five years, international insurance companies will insert some temporary restrictions in the coverage of your contract concerning this problem.
For example, if you had an operation on your right knee one year ago, you might be told that they will insure you without any loadings but any diseases or accidents regarding the right knee will be excluded for the first 2 – 5 years of the contract.
Group health insurance Cyprus, current conditions 2
Most individuals suffer from one of these conditions after their 40s: high blood pressure, high blood sugar and high cholesterol, of which high cholesterol is the least critical.
International companies will disregard high cholesterol, while local companies will require medical exams and might insert a loading (i.e. increased premium).
International companies are more lenient than local companies about high blood pressure and high sugar.
Local companies refuse to insure 50% or more applicants with high blood sugar (diabetes) than international companies, and they will require updated medical exams.
International companies are more likely to insure you without loading for high blood pressure.
On the other hand, local companies will include loading or might even refuse to insure you if your blood pressure is extremely high.
Moratorium is only provided by international companies.
Medical History Disregarded Coverage
Medical History Disregarded (MHD) is a type of group health insurance contract which provides coverage for a company’s employees regardless of their health status.
The insurer won’t ask to delve into the employee’s medical records, nor will they discriminate based on their medical history.
It will provide coverage without question and inevitably insure people with pre-existing conditions.
Practically speaking, employees with cancer, diabetes, and serious health concerns will be insured and not excluded under this scheme.
Even though people with pre-existing conditions will be insured, the pre-existing conditions and contract exclusions will still apply (i.e. pre-existing conditions are excluded from the coverage).
Employees with pre-existing conditions will be covered for accidents and diseases not related to their pre-existing conditions.
Medical History Disregarded is exclusively provided by international insurance companies. Also, this coverage is only offered to companies that employ more than ten employees.
MHD underwriting premiums are generally 10% – 15% more expensive than full underwriting.
Local companies are generally more strict than international companies when assessing individuals with past and pre-existing/current medical conditions.
It’s important to note that the higher the number of employees being insured, the higher the company’s bargaining power.
For example, if a company wants to insure more than 50 employees, the insurance company will probably accept people with pre-existing or past conditions.
Exclusions
All insurance contracts, whether from an international or a local company, have some universal standard exclusions (i.e. obesity, AIDs, obesity, cosmetic and plastic surgery).
Local insurance companies have some additional exclusions. For example, most local companies do not cover ophthalmologists and dentists.
Ability to transfer a contract from one company to another
International companies provide the opportunity to transfer a contract from another provider, local or international, without a waiting period (i.e. the amount of time an insured has to wait before some or all of their coverage comes into effect).
For example, some conditions, such as a meniscus tear, tonsillitis, and degenerative disk disease, include a waiting period and are not covered in the first six months of a new contract.
Tailor-made policies
International group health insurance plans are more flexible than local plans. You can add or remove coverages from international plans (e.g. dental, optician, childbirth benefits).
There are many benefits to group health insurance for employees, which include the following.
Business group health insurance in Cyprus typically includes the following.
Business group health insurance in Cyprus typically excludes the following.
The cost of a group health insurance policy depends on the following factors:
Pitsas Insurances is the largest provider of group health insurance contracts in Cyprus.
Our company cooperates with the largest international underwriters globally and every underwriter based locally in Cyprus.
We can obtain the most profitable deals for our clients due to our longstanding and positive working relationships and the sheer number of contracts we handle.
We aim to guide our clients to pick the best insurance package that satisfies their needs and budget constraints.
Save on group health insurance Cyprus
There are many ways to save on the group health insurance contracts. We suggest the following ways to acquire cheap group health insurance Cyprus.
Pitsas Insurances can find you the best group health insurance for employees.
We cooperate with more international underwriters than any other insurance company in Cyprus, enabling us to find you the best deals.
We can also help tailor the best group health insurance policy to meet your needs.
Group health insurance Cyprus
Our experienced insurance consultants analyse your needs and budget constraints and try to find the best option for your business.
Speak with one of our insurance agents today to secure your business group health insurance with ease.
Thousands of small businesses are registered every year in Cyprus.
No matter the size of your business, protecting your employees’ health is an investment for higher productivity and efficiency.
Group health insurance small business
At Pitsas Insurances, we insure businesses of all sizes and provide dedicated group health insurance for SMEs.
We adjust the terms of our packages based on the needs of the employees to avoid the overcharges of fixed terms.
Pitsas Insurances is one of the oldest insurance companies in Cyprus and has been operating since 1985.
We pride ourselves on our quality of services, and as such, we hold more local and international awards for our services than any other insurance company in Cyprus.
We are the largest provider of group health insurance contracts in Cyprus as we cooperate with the largest international underwriters around and with all of the underwriters based in Cyprus.
Some of the largest international companies on the island are part of our clientele.
Specifically, these clients are international software developers, investment and financial corporations, law firms, and shipping and construction companies.
Group health insurance Cyprus
See our website to find out what our group health insurance can do for you.
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Pitsas Insurances Team