Is Group Health Insurance Worth It?: Tips For New Business Owners
Dan Levenson June 30, 2015
If you’re looking for something that costs less, and makes life easier, look no further: Group health insurance plans are a great option for employee coverage!
Group health insurance is a type of insurance that offers healthcare provisions to a select group of people. This type of coverage is beneficial for businesses that wish to cover employees, and the best thing about it is that, it’s uniform so all members receive equal benefits.
Many benefits come along with group health insurance plans. To start, the costs involved are usually minimal for participants of the group, other than costs of individual plans offering similar benefits. This makes it flexible because risks can be varied and widespread through the entire group of employees, as opposed to a single individual. Any premium costs that are supported by the insurer are fully deductible, and other benefits received by a select group are issued tax-free.
To help you understand why group health insurance is so beneficial for businesses of any size, we’ll highlight the main advantages for you as a business owner, your employees, and the business as a whole:
Group health insurance gives you and your employees access to healthcare.
This seems like an obvious one but, as business owner, you benefit from the well being of your employees. Anyone with a health coverage plan is better placed to obtain affordable medical care, including preventive care, which helps prevent further medical complications. While employers may offer group health insurance plans to employees for reasons of making it affordable and accessible, employees on the other hand are likely to get encouraged to maintain healthy lifestyles that could have been far from reach.
Health benefits lead to higher recruitment and retention of employees.
Businesses that offer the provision for group health insurance plans experience several advantages.
- People will very often be willing to worker better, harder, and for longer if there is an incentive as good as health insurance coverage. This is especially true among millennial employees recently off their parents’ insurance or for employees with spouses and/or children they need to have covered.
- It’s no secret that recruiting and training new workforce can be time consuming. Choosing to offer group health insurance plans to your employees saves you the hassle, as you only get to retain the best talents for your business who better qualify for such benefits.
- With the possibility of easy-to-get medical care, your employees will be able to work with guarantee that they are safer health-wise. Good coverage minimizes the frequency of having employees absent from work and disrupting the company’s productivity.
Medical coverage helps ensure financial security.
Apart from improved accessibility to health care, health coverage ensures costs for other services are manageable. People in group health insurance plans are protected from the financial burdens such as unexpected illnesses that may arise, thus lead to debt accrual. With such unpreparedness, health care costs may exceed the amount an individual with a coverage plan is able to afford. So the group health insurance plans is made available to prevent such occurrences.
Uncle Sam looks out for businesses who provide insurance.
Any health insurance-related expenses incurred by an employer are 100% tax deductible! This is realizable if employees can be requested to make contributions for group health insurance plans on a pre-tax basis, which means deductions are made directly from paychecks before calculations for state and federal taxes are carried out. In-turn this lowers employees taxable income.
So, are you currently offering your employees with a group coverage plan? If you want to experience tremendous growth with your business, it’s time to motivate your employees by offering them a collective health insurance plan.