Top Reasons Your Company Should Offer Health Insurance Benefits
Employers have many choices when it comes to the benefits they offer. While paid vacations and retirement plans can help attract top talent, nothing entices new hires more than health benefits. Providing a quality health plan reduces the number of sick days employees take. It also increases productivity and morale.
Although large companies with 50 or more full-time or full-time equivalent employees must provide health benefits per ACA rules, many smaller companies choose to offer benefits as well. According to the Kaiser Family Foundation (KFF), 31.2% of California businesses with less than 50 employees offered health benefits in 2019. According to Mercer’s Global Survey, 19.88% of all U.S. businesses are currently considering updating their benefits plan to better meet employee needs and 12.8% have already expanded healthcare support or benefits. An additional 16.4% plan to add or expand voluntary health benefits in 2021.
Business owners still unsure of whether to offer health insurance to their employees might want to consider the following reasons.
Saves Money on Taxes
When it comes to taxes, offering an employee health plan provides significant benefits. Employers that offer health insurance can take advantage of massive tax breaks.
Employer-provided health insurance premiums are tax-exempt, meaning employers can reduce or eliminate their tax duties altogether. Another benefit, employers can deduct any contributions they make on behalf of their employees. Paying for health benefits saves employers money over paying for higher salaries. Money spent on health benefits isn’t subject to payroll taxes or worker’s compensation premiums.
Provides Access to a Larger Network of Doctors & Hospitals
When employers purchase group insurance they gain access to a much larger network of doctors and specialists than available through individual health plans. In California, individual networks are generally two-thirds the size of group insurance networks.
Increases Productivity and Employee Morale
Offering health insurance provides employees with access to preventative care. Receiving regular check-ups helps catch health problems sooner, reducing sick days and the likelihood of serious illness.
Healthy employees have better focus and less stress. This boosts productivity in the workplace. Most employees state they would prefer good health benefits over higher pay. Offering health benefits improves employee satisfaction and helps attract new candidates.
Help Is Available
Employers often struggle to understand the different options and terminology associated with choosing a health plan. Fortunately, organizations do not have to go through the process alone. An experienced employee benefits specialist can help employers determine the right insurance plan for their organization. These individuals have years of experience and understand how to set everything up and ensure compliance with state and federal laws. They can also help answer questions employees might have regarding their health benefits.
MEBO offers employee benefit plans customized to meet the needs and requirements of businesses both large and small. Please contact us for information about our services.
