Whether you need to take your child to the doctor for a checkup, buy medication for high cholesterol, or make a trip to the emergency room after an accident, medical care can get expensive. Both routine and unexpected visits to the doctor can be financially burdensome but health insurance can help. Health insurance gives you financial security for when you or your family need medical care.
For example, if you break your leg and need surgery, the hospital bills would probably put a large dent in your savings or might push you into debt. These days, you can sign up for health insurance through your employer’s group plan which is one of the most common ways to obtain health coverage. This article is a guide for all company owners of the reasons why companies need to invest in group health insurance.
1. Cheaper Premiums for Employees
The first reason why companies need to invest in group health insurance is that group plans offer significantly cheaper premiums for employees. When you purchase a health insurance policy, you agree to pay a monthly fee called a premium to the insurance company. In turn, the insurance company will pay a portion of your medical expenses as and when you need them. Most health insurance plans will have some type of cost-sharing which may include a deductible copay or coinsurance. These cost-sharing elements will determine the amount of the medical bill that you may have to pay whilst the balance is paid by the insurance provider.
Group health insurance often has lower rates than individual health insurance plans because the risk for the insurance company is spread out over a group of people. Basically, a healthy team of work-age employees is a low-risk group and so the insurance company will be confident that they are unlikely to have to pay out a lot of money for medical bills and so will pass this confidence on in the form of lower premiums. Affordable comprehensive employee health insurance is one of the most sought after benefits for today’s workers and so providing your employees with group insurance is a great way to keep your employees happy.
2. Group Insurance will help you to Attract Talent
As well as keeping your current employees happy, great benefits like group health insurance help you to attract the very best talent to your company. In the current employment market, when trying to attract high-level employees, it’s really important to offer desirable perks which will make your company stand out from your competitors who are also trying to attract the same talent. Because healthcare costs are so high, a great health insurance package is the single most attractive perk that you can offer.
There is a wide range of group health insurance plans available online and you can visit here to see some plans that we found helpful for attracting the best employees to your company. Potential employees like to check that your company is a good place to work and affordable health insurance for current employees will show that you care about your employees and want to make sure that they are protected. Being able to present your company’s group health insurance policy to a desirable interviewee can help to seal the deal.
3. Significantly Cheaper Costs for you as an Employer
In addition to cheaper insurance costs for your employees, investing in a group health insurance plan for your employees can also save your company a lot of money. As noted above, the overall group plan will have cheaper premiums because the risk for the health insurance company is being spread across a group of healthy, working-age people. Therefore, the portion of your employees’ health insurance that is paid for by your company will be paid at greatly reduced premiums because of that shared risk. As well as this, buying group health insurance for your company’s employees offers many tax benefits to you as the employer.
Many group health insurance plans are actually 100% tax-free for the company that purchases the plan. Furthermore, as group health insurance rates are worked out based upon pre-tax income, companies end up with surplus money than would have been the case had they bought individual plans for their employees. Additionally, any taxes on group health insurance premiums can be claimed back by companies. Especially for big companies who have many employees, this could be a substantial amount of money saved.
4. A Better Office Environment
As noted above, providing your company’s employees with great health insurance will make sure that your employees are happy in their jobs. Whilst this is important on a human level, it is also very important for running a successful company because happy employees are always more productive in their jobs. Recent economic studies have shown that companies with employee benefits like health care coverage are up to 20% more productive than similar-sized companies that don’t offer these kinds of benefits.
If you provide your company’s employees with excellent health insurance then they are more likely to go and receive treatment when they are sick and to take the necessary medication that they are prescribed. This will ensure that your workforce stays healthy in the short-term and is able to work and that they do not develop long-term illnesses due to not taking the correct preventative measures early on in their illness or injury situation. Healthy employees take far fewer sick days off from work and so your company will have great levels of productivity.
It is so important for companies to provide their employees with great health insurance and a group a health insurance plan is a fantastic option. The main advantage of group health insurance plans is the reduced premiums for both your company and your employees. Protecting your employees with comprehensive health care coverage will help to create a happy atmosphere in your company’s offices. This will ensure that your employees are happy and productive and that you will be able to attract the best talent.