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One phrase you may hear often is that “Your employees are your greatest asset”. The reason for this is that it’s very much so true. Group health insurance is a very important factor in the maintenance and recruitment of employees for your small and medium-sized businesses. In addition to this, it helps boost productivity and employee satisfaction all around. 

What does it mean as an employer?

In most small and medium-sized businesses, work can be demanding and depend on people to deliver their services. The individuals in these roles have many names such as staff, workers, employees, associates, personnel, human resources, workforce, or even talent. Even though we are impressed to see the output that our employees provide the business on a daily basis we must be equally concerned as to what we cannot see. 

The simple definition of health is the state of being free from illness. This definition goes towards what can be seen, but what also cannot be seen by the visible eye. Thoughts of the family are imperative when it comes to employment, for example, a sibling with pre-existing conditions may come to mind or even if a child comes along with an illness that requires advanced medical intervention. Even the most awesome employee can walk through the halls of the office and have this going on at home. It will always be best to help put these coverage and payment worries at ease with employer-provided health insurance. 

The elements of employer or group health insurance are generally the same. Also called group plans, employer-provided health insurance is a health policy selected and purchased by the employer and offered to applicable employees and their dependents. Small and medium-sized businesses will typically share the cost of the premium with the employee. This ultimately discounts the coverage for the employee with the employer as opposed to having an individual plan paying walk-in prices.

Employer or Group health insurance has its perks!

There are positive benefits and incentives for having employer health insurance for the employee and the employer. An employee can enjoy the benefits of health insurance that can range from not having to locate the plan and their options and premium contributions from the employer that are not subject to federal taxes. This means employee contributions can be made pre-tax, which lowers the taxable income. Give or take what plan would be available for selection, there may be an opportunity to put money away in a Health Savings Account, which can be used for health-related expenses for those unexpected medical costs. Like the domino effect, this will spill over to employee morale and boost the spirits of those working. Workers who provide the best efforts at work feel secure where they work. Productivity levels could be a clear difference between high profits or heavy losses. In which we as a team always want to win!

Let’s connect the dots

Many small business owners agree and offer health insurance benefits even when they aren’t required by the Affordable Care Act to provide coverage. Why do these small businesses cover their employees through group plans even though they’re not legally required to? Because it’s good for their teams and good for them. If you’re on the fence on the matter, here are the top five reasons to offer health insurance to employees:

1. The ways in which health insurance can be offered are simple.

2. Health benefits make employees feel secure and happy.

3. It saves money on taxes 

4. It can give access to more doctors and hospitals

5. Providing health insurance helps boost employee productivity

Here’s a FREEBIE! Small Business Care Tax Credit

If you are a small or medium-sized employer, there is a tax credit that can potentially add some bucks to your account. The small business health care tax credit can certainly be an excellent incentive for offering health coverage for qualified employers. The Internal Revenue Service accommodates small businesses in various ways. Not only is the tax credit available for two consecutive taxable years; it may also help small businesses in keeping and attracting high-quality employees. Keep in mind that this isn’t an easy credit to qualify for, and sometimes it is not worth it.


Health insurance helps in attracting and keeping high-quality employees.

Let this be the STATUS-QUO

study from MetLife found that 60% of employers say offering health insurance has led to higher productivity levels. Additionally, according to the CDC, employees who prioritize preventive care—like regular checkups—get more accomplished at work. As a small and or medium-sized business owner, you want your employees to focus on being their best productive and successful selves at work. Worrying about health insurance drains their energy and time. As you know, health insurance can be a pain to set up. And if your employees are enrolled in individual plans, all of that burden of setting up and managing their plan shifts from you to them.


How Has Covid-19 Affected Health Insurance Offered by Small Businesses in the U.S.?

US National Library of Medicine National Institutes of Health confirmed that more than 40% of the private U.S. labor force is employed by small businesses, defined as those employing fewer than 500 workers. The Covid-19 pandemic led nearly half of small businesses to pause or cease operations within weeks of the March 13, 2020, national emergency declaration. While surveys have documented significant numbers of wage cuts and furloughed workers, the effect of the pandemic on employee benefits remains understudied and of utmost public importance. Given that more than half of the working-age population relies on employer-sponsored health insurance, the economic crisis is eager to spark an insurance coverage crisis.

And there you have it. From building a healthier, happier team to actually saving money, there are many reasons to take the plunge and offer health insurance to your team. Offering health benefits signals that you care about your team, ultimately building a culture of trust.

Contact us today for assistance with your group benefits needs

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