If you run a small business, you may be wondering whether or not you should offer your employees a group health insurance package. In an era where health and well-being are taken into account more than ever. There are a number of reasons as to why offering a group health insurance plan will benefit not only your employees, but you and your business as a whole. Offering a group health insurance option will safeguard your employees health, increase company morale, improve recruitment, and boost employee loyalty. All while providing you (the employer) with savings and tax incentives. Just in case you’re still pondering the idea of obtaining group health insurance. We’ve put together a list of some of the top reasons as to why it’s advantageous to do so.
1.Healthier Equals More Productive
We will start at the top of the list by talking about employee-well being. In general, when your employees have a group health insurance plan, they have better health options. When your employees are doing well healthwise, it can benefit your company greatly. One of these benefits would be that your employees may be less likely to have missed days of work. According to a study conducted by the Journal of Occupational and Environmental Medicine, when employees have health benefits at any point during the year, the amount of days they miss from work will be greatly reduced.
Adding to this point, offering group health insurance also lowers labor costs. When employees have no insurance they may suffer more from health issues. And because of this, they will have a higher chance of quitting or retiring early. This can lead to a high employee turnover rate, which will ultimately cost the company money. Lastly, employees who are healthy on a regular basis tend to operate more efficiently and effectively when compared to employees dealing with health-related issues. All in all, group health benefits enable your employees to get more done on the job. And improve the rate at which they recover when they do become ill. Leading to lower premiums and a higher production rate for your business.
On average, employers who offer group health benefits will see an increase in employee satisfaction. It was found that of all the benefits that companies offer, employee health insurance was always number one on the list of benefits that correlate with happy employees. That being said, one way that a satisfied employee will reflect on your business includes better interactions between other employees and clients. Which will then lead to improved customer satisfaction. Additionally, when an employee feels gratified, they will more likely want to improve and learn while on the job. Rather than doing the bare minimum. All things considered; it may be in your best interest to make health insurance your main benefit priority.
3.Increased Company Loyalty
Offering health insurance options to employees may also be a good strategy in order to keep your company’s top talent. With most industries being very competitive, people will always want to assess their options by looking at other job opportunities. So offering a good insurance package could be the difference in whether or not a great team member stays with your organization. Though everyone loves a pay raise. According to a 2015 study done by Glassdoor, a shocking 80% of employees preferred additional benefits over a pay raise. Of the preferred benefits, better health, dental and vision insurance ranked number one. This was followed by more flexible hours as well as additional vacation time. If you have long term employees that remain loyal to your company, this can save you money since there will be less costs for hiring, training and onboarding.
If you decide to offer group health insurance to your employees, you will have an advantage when deciding to branch out and hire new recruits. Just like people compare prices to find the best deals. When employees are looking for work, it would be in their best interest to shop around to find the most suitable employer. A major way that you can stand out from industry competitors is by offering a health plan with great employee medical benefits. By doing so, future employees will rest assured knowing that their health concerns will be taken care of at your company. Furthermore, candidates will view you in a positive light since your extensive health package lets them know you truly value them. This will start their career off on a positive note.
5.Lower Out-Of-Pocket Costs
When looking from a purely financial perspective, it becomes clear that offering health insurance options to your employees will benefit them when it comes to yearly costs. On average, small business health insurance plans exhibit lower costs per-person when you compare them to unsubsidized individual plans. While premiums for Affordable Care Act (ACA) health plans may be lower than employer-sponsored insurance. It’s important to keep in mind the rising deductible costs of these plans. That being said, with there being less affordable unsubsidized insurance options, offering a great employee health insurance plan will help reduce the stress of your workers.
Offering insurance to employees will benefit the employer due to the tax benefits that come with a group plan. There are a number of ways that employee health coverage plans can play to your advantage when it comes to taxes:
- When you offer health insurance to employees as part of a compensation plan. You will likely benefit from reduced payroll taxes.
- As the employer you will be able to deduct 100% of the cost of monthly premiums that you pay for your group health plan, from your federal business taxes.
- You can also generally deduct Health Savings Account (HSA) contributions from your business taxes.
In addition to these three core employer tax-related benefits, some small businesses can also benefit from the small business health care tax credit. This tax credit, which was created by the Affordable Care Act, was developed in order to encourage small businesses to offer group health insurance to their employees. To be able to qualify, your business must have the following characteristics:
- The business must have less than 25 full-time employees. However, to receive the maximum tax credit, the business must have fewer than 10 employees.
- As the employer you must pay at least 50% of qualified employees’ health insurance premiums.
- Your company must pay average wages of less than $50,000 each year per employee.
- Your group health insurance plan must be purchased through the Small Business Health Options Program (SHOP) Marketplace or through a licensed insurance agent who enrolls your business in a SHOP plan.
If you think your business may qualify for the small business health care tax credit, be sure to keep in mind that it is only available for two consecutive taxable years.
By deciding to offer a group health plan to your employees, you will be giving many people access to health insurance that they otherwise wouldn’t be able to afford. According to Gallup, in 2022, 44% of American adults were struggling to pay for healthcare. Also within that same study, 93% of Americans felt as though the benefits they were paying for were overpriced. Nevertheless, offering group health insurance may be the only opportunity for some of your employees to be insured. In addition to helping provide physical relief for health concerns. An employee-sponsored health plan will also reduce the stress of employees since they’ll be able to afford the care and treatment they may need.
While business owners generally understand that providing employees with insurance will protect them financially in the case of an accident. There are a plethora of other reasons to do so too. When employees’ health needs are taken care of, not only will they be more productive while in the office. But they’ll also be more loyal to the company and less likely to seek out another job. Offering a stellar employee health plan can also help when it comes to finding new employees.
In an ultra-competitive job market, having top notch health benefits can help you stand out and entice more hard workers. Additionally, a group health plan can help you save money by lowering out-of-pocket costs and by providing you with tax incentives. No matter why you decide to purchase a group health plan, it will pay off in the long run. Making employees feel more appreciated, knowing that they work for a boss that truly cares.
If you are interested in receiving an exceptional group health insurance plan, Group Health Quotes is the perfect place for you. Our GHQ agents will be able to walk you through a variety of available options. Ensuring that you find a plan that fits your needs and budget. Shopping for insurance can be time-consuming and frustrating, but it doesn’t have to be! All of our licensed agents are experts when it comes to group health insurance. Making the process a walk in the park. When it’s all said and done, your employees will have great coverage. And you’ll be happy knowing that they’re well taken care of. To get a free quote, simply go to Group-Health-Quotes.com and enter your ZIP code or give us a call at 888-571-0291.