Dear friend,
In India, company health plans usually have two components:
The first one is called "domiciliary medical" reimbursements; which, as the name would suggest, deal with reimbursements of expenses of the employee and his family members. These expenses are in the nature of doctor visit/call fees; medicines purchased from dispensaries/pharmacies - all in all, these expenses are not part of a "hospitalization", i.e., to say these expenses cover illnesses which do not result in hospitalization. This component in most companies is part of the annual cost of the employee. There is a tax rebate on this subject to a limit - which also calls for a tax (fringe benefit tax) to be paid by the employer.
The second one is the "mediclaim" - is run through an insurance company dealing in the same. The expenses claimable under mediclaim are part of hospitalization treatment - i.e., involving admission into a hospital which is followed by medical procedures. The insurance premium may or may not be charged to the employee.
So as far as the employers are concerned, the domiciliary medical reimbursement can be paid up to the employee with suitable tax treatment.
As for the mediclaim, if the employee cannot avail the same - because he is already a member of another plan (by whatever reason), the payment of the premium payable by the employer (which is nominal in case of large employee groups) can be considered for payment to the employee.
Regards,
mxsingh