There are many benefits you can offer your employees, but there are few better than Health Insurance for a Small Business Owner. In fact, 44% of ‘micro’ small business owners (companies with 10 or fewer employees) offer small business health insurance even if they aren’t required to provide it. So why would a small business cover their employees thru a group health insurance plan when they are not legally required to do so? Here are the top five reasons why your business must offer health insurance.
Group Health Insurance makes your employees happy
According to Glassdoor, employees said health insurance is, by far, the most important benefit they receive from their employer. The top three benefits that make employees the most satisfied, according to Glassdoor’s study, are:
Vacation and PTO
Pension plans, 401(k) & other retirement plans
Offering a benefit that your employees want seems like the best way to attract and retain talented employees.
Offering health insurance for a small business owner saves you money on taxes
Tax savings are realized for both a small business and the employees when property set up.
Savings for employees:
When employees buy health insurance on their own, they must use after tax dollars to pay their portion of the premium. But when employees pay their portion of health insurance premiums on a group health plan, they pay for their share with pre-tax dollars. This can save from 30 to 45 percent on their health insurance premium!
Savings for employers:
Employer contributions toward employee health insurance premiums are tax-deductible to the business. In addition, when properly set up with a Section 125 Premium Only Plan, the Employer payroll taxes are reduced by the premium split payable by the employees as well.
Group Health Insurance Plans give you access to more doctors and hospitals than Individual Market plans
Group health insurance networks are often larger than individual marketplace networks. Many doctors and hospitals don’t accept individual plans as they are not paid as well as group health plans. The network differences vary by state, but in New York as an example, individual plan networks are typically two-thirds the size of group networks. So, by offering health insurance for a small business owner, you are allowing your employees access to more and better doctors and hospitals.
Health Insurance boost employee productivity
A study from MetLife found that 60 percent of employers say offering health insurance has led to higher productivity levels. And according to the CDC, employees who prioritize preventive care — like regular checkups — get more accomplished at work.
In addition, many group health plans now offer Telemedicine coverage. This allows employees and their dependents to access qualify healthcare right from their smartphone. That not only could save an employee from missing work to go see a doctor, it also could save an employee for missing work to bring one of their children to the doctor’s office. This all helps to improve your company’s bottom line.
Most importantly, it’s easier than you think
A small business owner can use the free services of a group health insurance broker to help assist them! You read that correctly, a small businesses health insurance broker works for you for no cost. As an example, a NY Health Insurance Broker costs nothing to use, is paid directly by the insurance company you decide to use, and does not increase the premium you pay! Since they work for you, a NY health insurance broker is free to find the best deal for you each and every year.
Offering health insurance for a small business owner means being able to attract and maintain quality employees. It means you appreciate your employee’s health and well-being by offering insurance to keep them healthy and productive. It also means you are making sure your company remains viable and competitive with the other small businesses who are trying to steal your employees away.