Why Do Companies Offer Health Insurance Benefits?
Healthy and happy employees offer higher loyalty and productivity. However, it might be challenging for small businesses to provide health insurance benefits. However, since it is a must-have for every company, these micro-enterprises can get health insurance quotes for small businesses.
This type of insurance is cheaper than a corporate medical policy. If you have employees of 250 and below, small business insurance can be of great help.
Why Is Healthcare a Popular Employee Benefit?
Healthcare costs are becoming expensive and more people are looking for companies that offer health insurance benefits. This is the reason why healthcare insurance is highly valued by employees nowadays.
How Can Health Insurance Benefit the Company?
Below are some of the reasons why companies offer health insurance:
1 To Attract Top Talents
Health insurance is the most sought-after benefit. A Glassdoor study showed that health insurance gives the highest level of gratification among 54 benefits packages. The study found that 4 out of 5 employees choose benefits over a salary increase.
Additionally, a survey featured by Harvard Business Review in 2016 resulted in 88% of respondents preferring a low-paying job with better benefits than a high-paying job.
Therefore, companies need to include the benefit that top-performing talents want. If they don’t offer what those talents are looking for, specialists might seek other employment opportunities.
2 To Increase Employee Job Satisfaction
Remember that your employees are your most valuable asset because they can determine the success or failure of your company. Healthy, happy, and valued employees will give their best effort in doing their jobs.
Healthy employees have higher productivity and are less likely to have burnout and absenteeism. When your employees feel valued, it will show in their work, such as:
- They’ll become more enthusiastic in interacting with your customers, thereby offering better services.
- They are inspired to improve their skill set by attending training and seminars.
- They’ll want to stay with a company that treats them well.
Although offering health insurance to your employees may seem expensive, you’ll also need to remember that it will benefit you and your company in the long run.
3 To Save Money on Taxes
When health insurance is purchased as a group, it is less expensive. Companies offering health insurance benefits can deduct some of their contribution toward their employees and get tax advantages. Their contributions are tax-deductible, and their employees’ premiums are also reduced. Paying for health benefits for employees can save money because companies will not pay payroll taxes.
4 To Reduce Labour Costs
You’ll have healthier and happier workers with health insurance benefits, lowering labor costs. When companies have unhealthy workers, they’ll need to resign or quit early, increasing employee turnover.
Because of health insurance benefits, workers will have quicker recovery due to better access to medical treatment and services. This will decrease workers’ absences and sick leaves.
5 Foster a Positive Work Culture
By providing health insurance, companies can show that they value their employees. When employees feel appreciated, it will promote a positive work culture. So why is positive work culture influential?
- Positive work culture will encourage positive emotion.
- It will improve employee relationships and teamwork, amplifying their productivity and creativity.
- It will enhance employee loyalty to your company.
- It will contribute to improved productivity and customer satisfaction.
Health insurance benefits significantly encourage a better work environment and more efficient communication.
Does Health Insurance Cover Pre-Existing Medical Conditions?
Although health insurance offered by companies can significantly benefit both workers and the company, employees need to understand that some conditions will not be covered. For instance, similar to any other health insurance coverage, pre-existing health conditions will not be covered. For example, health insurance will only cover diseases or medical conditions after purchasing and paying the insurance policy.
How Much Does Small Business Health Insurance Cost?
If you consider having small business insurance for your employees, know that several factors affect the cost.
- Location of the Company – The insurance cost will depend on the prices of medical treatment and services in your area. Businesses located in London will have a higher premium.
- Number of Employees – The more employees you have, the more group discounts you can get. This will decrease the cost of insurance for each employee.
- Type of Work – The riskier the employees’ job in your company, the greater the insurance cost.
- Age of Workers – Like any other insurance, the higher the insured’s age, the higher the insurance expense.
- Type of Insurance Plan – More comprehensive health insurance will require a more significant premium.
Health Insurance benefit is a vital element in acquiring top talents. For example, several studies reported that people are more interested in health benefits and other additional benefits than a mere high salary. However, if you have a small business, health insurance benefits can increase your edge among your competitors.