Should Employers Offer Employees Health Insurance?
Employers often wonder whether or not they should offer health insurance to their employees as an employee benefit. Depending on state and federal laws such as The Affordable Care Act (ACA), your company may be required to offer some sort of health insurance coverage if you have over 50 employees. However, if you are a small business in Daytona Beach and aren’t required to offer health insurance, providing such benefits can be a perk for your employees.
But how is it beneficial to your company to provide health insurance? And does offering health insurance increase your company’s ability to hire employees? There are many ways that health insurance can help your company operate more efficiently and effectively. This article will discuss five reasons why employers should offer health insurance to their employees.
1. Health Insurance Promotes a Healthy Workplace
The average person cannot afford health insurance resulting in them often neglecting their medical and mental health needs. Show your employees that their health and well-being are a priority to your company by providing them with health insurance benefits that they can afford. This will help your company create a positive workplace that promotes employee wellness.
2. Effective Hiring Strategy
Hiring qualified employees in Daytona Beach is not the most straightforward task. When employees are searching for a job position, what is one of the first things they look at? One of the biggest questions they might ask themselves on their job search is…does the company offer benefits, and if so, how good are the benefits? Offering benefits such as health insurance to potential employees will significantly influence their decision to accept an offer from your company or elsewhere.
3. Lower Premiums Available Through a Group Plan
From a cost perspective, when you offer health insurance through your company, you can usually get a reduced price for a group health plan. When compared to health insurance in Marketplace, group health insurance plans can offer a lower per-person rate. Meaning you won’t have to spend a lot of money on health insurance to reap the benefits of offering it to your employees.
4. Higher Employee Retention Rate
Offering health insurance benefits to your employees can be an effective way to retain some of the best workers for a more extended period. Providing benefits such as group health insurance coverage can also reduce the risk of losing employees. Many employees prefer health insurance and other benefits over a higher salary. If you aren’t offering what they need, they may choose to find another job elsewhere that gives them what they are looking for.
5. Savings for your Employees
The amount that your employees contribute towards health insurance premiums can be paid from their pre-tax income allowing tax savings by reducing their taxable income. Additionally, obtaining insurance through the Marketplace can be costly. Offering your employees health insurance through your company will help them save more money in the long run.
Conclusion: Offering Health Insurance
Offering health insurance to your employees can help them get accessible and affordable medical care while benefiting your company. At Vision HR, our licensed experts keep current on trends in the health insurance industry and help you get the right coverage for your employees. From Health Savings Accounts, Health Reimbursement Accounts, and the Affordable Care Act, our trained staff will bring you up to speed on what is happening and what makes sense from the industry to your business. Contact us today to find out how we can help your company.
