Employer sponsored health insurance is the most common source of health insurance in the US (more than 60% of the population receives benefits this way). Generally, group coverage is significantly less expensive than an individual health insurance policy. Typically, employers cover at least 50% of each employee’s monthly premium and can also contribute towards the premium of dependents.
What are the benefits of offering group health insurance to employees?
- Lower turnover rate: employees rate health benefits as the most important benefit that they receive from their employer. Therefore, companies that offer medical group plans to their employees usually have a lower staff turn-over rate and have higher chances of retaining employees.
-Attract qualified employees: besides the benefits of employee retention, offering group health benefits also helps you attracting talent for your company and makes you stand out from other employers.
- Employee morale and motivation: offering group health benefits shows that the company is concerned for the well being of its employees and that it wants to provide them with a good working environment.
- Increase productivity: a comprehensive group benefit package and adequate care could reduce the amount of sick days and more importantly, prevent people from getting sick.
- Group coverage protects employees and their family members who might otherwise go uninsured; in small group health coverage, no one can be turned down based on medical history. Employers can feel confident knowing important members of their staff have access to quality medical care should anything happen to them.
- The amount you pay towards your employee’s health insurance premiums may be tax deductible. Your business may qualify for the small business health care tax credit.