Group health insurance plans have many benefits for small business owners. By pooling together, businesses can enjoy lower premiums and wider coverage options. In addition, group plans offer tax advantages and the peace of mind that comes with knowing employees are covered in the event of an accident or illness. If you’re considering a group plan for your business, here are some advantages to keep in mind.
First Of All, What Is Group Health Insurance?
Group health insurance plans provide businesses and organizations an opportunity to offer members or employees access to healthcare coverage at a more affordable rate due to the risk spread across the group.
All plans are unique, so companies should carefully consider their insurer choices, plan type preferences, cost concerns and terms before selecting one that best fits their needs while ensuring they meet any minimum participation requirements.
Upon selection of a plan by employers for enrollees, individuals contribute towards coverage with pre-tax paycheck deductions on each month’s premium payments.
Lower Risk & Lower Premiums
Group health plans provide a unique risk-pooling solution to both insurers and members. By spreading coverage across multiple individuals, this leads to less risk for insurance companies.
This shared risk that group health plans offer translates to lower premiums for members compared to individual plans. In addition, your employees’ family members and dependents can be added to your group plan at an additional cost to members. This can help families where your employee is the sole provider or where the only alternative is a pricey individual plan.
Group Health Insurance Tax Benefits
As a small business owner, you may be eligible for a range of tax benefits relating to group health insurance. This can help reduce your taxable income and lower your overall business taxes.
If your business participates in the Small Business Health Options Program (SHOP), you may qualify for The Small Business Health Care Tax Credit, worth up to 50% of your employees’ premiums. The tax credit is available for businesses that fit all of the following criteria:
- There are fewer than 25 full-time employees
- The average employee salary is $56,000 or less
- You offer coverage to all of your full-time staff members
- You pay at least 50% of employees’ premium costs
Group Health Insurance Costs Less For Employees
According to the Kaiser Family Foundation’s most recent data, 48.5% of the U.S. population has health insurance coverage through their employer. Small business employees have the advantage of being able to access this coverage at an affordable price for themselves and their families. As if that weren’t enough, they can also benefit from their premiums being considered pre-tax – which lowers their overall taxable income.
Employers are increasingly offering supplemental plans, including coverage for dental care, vision needs, etc.—all designed to ensure their employees’ wellbeing. This bundling of benefits saves employees even more money than they would otherwise pay on their own.
Employees Value Group Health Insurance
Health insurance is one of the main benefits that helps to attract and retain quality workers. But what many business owners may not realize is just how much employees value this benefit. In fact, the 2022 SHRM Employee Benefits Survey found that 88% of employees rank employer-provided health insurance as very or extremely important. So if you’re looking to keep your team happy and healthy, consider offering group health insurance. You’ll be glad you did!
A Healthier, Happier Workforce
Providing group health insurance is a powerful way for employers to show appreciation to their employees. This coverage signals that staff are valued and cared for, leading them to become more productive, motivated team members invested in making their company successful. Although this benefit alone can’t solve all issues between employee or employer relationships, it promotes a positive environment which contributes greatly towards mutual success.
Attract & Retain More Top Talent
Offering a group health insurance policy can also reduce your company’s turnover. Having insurance is a safeguard against both expected and unexpected medical expenses. It enables employees to access vital preventative services, and should things take an unwelcome turn due to illness, the plan can provide lifesaving coverage from crippling debt.
Altogether, group health insurance plans are a great way for small business owners to provide quality healthcare benefits to their employees. From significant tax advantages to lower premiums and the peace of mind knowing that the company is protected, everyone truly benefits from a group health plan.
Whether you’ve been in the market for employee health insurance options already or you’re just now beginning to explore your choices, group health plans are well-worth considering.
Make sure to get answers to any questions you have and come up with an informed decision about which plan will suit your employees and provide them with the best possible coverage. To get started on finding the perfect employee health plan for your business, call (877) 658-2374 or simply enter your zip code above today.