When someone is seeking employment, the number one thing they want after a paycheck is group health insurance. Paid vacation, sick time, and a company credit card are all nice, but health insurance is a necessity that most people want their employer to provide.

If you are a small business, you may think group health insurance is too expensive, complicated or simply not worth dealing with. The truth is that providing group health insurance can be a very smart business decision. Here’s why.

group health insurance

Tax Savings

As the employer, your contributions toward group health insurance are tax-deductible, and your payroll taxes will be further reduced by employee contributions. Your worker’s compensation taxes may also be reduced. Your employees will also benefit from a tax savings, as their contributions are pre-tax, rather than post-tax as they would be if they had to purchase an individual health plan.

It Makes for Happy Staff

A good health insurance plan is an excellent draw when you’re trying to fill a vacancy. It’s also a good anchor to make employees think twice about moving on. Buying their own individual plan will be expensive, and COBRA is also expensive. A gap in benefits of three months or more while they wait to get insurance through a new employer is a scary thought to most people. This means your staff will be more likely to come to you and try to find resolution to issues rather than simply quit.

Greater Access to Doctors and Hospitals

Individual health plan networks tend to be smaller than group plan networks. Better coverage means your employees will be more likely to see their doctors on a regular basis and therefore, be in better health. Healthy employees mean higher production rate, which of course translates to more sales.

Improved Productivity at Work

With healthy employees you’ll see greater productivity from your staff. They’ll be able to visit their doctors regularly, so they’ll be in better health and miss fewer days at work. When they or their children get sick, with an individual plan they may have to drive much farther to see their doctor. With a group plan, they’ll often be able to find a closer doctor, get in and out faster, and miss less time at work – maybe half a day compared to a whole day, for example.

Group health insurance is an easy way to keep your staff both happy and healthy. Just make sure to purchase from the right provider so that you can avoid hidden costs and maximize the benefits of your coverage.

Sources:

Pro and Cons: Offering Employee Benefits, FindLaw.com
Reasons to Purchase Group Coverage, HealthCoverageGuide.org