5 Ways Group Health Insurance Benefits A Business
According to the federal National Health Interview Survey and the Kaiser Family Foundation (KFF), nearly 60 percent of America’s non-elderly population have health insurance through their employers. There's no doubt, health insurance is highly sought after by employees. However, many employers are still unclear as to how group health plans provide distinct advantages to their business.
Here are 5 reasons why businesses choose Group Health Insurance for employees:
1. Employee benefits help in recruiting new employees.
A survey by the Harvard Business Review found that 88% of respondents would choose a job that offers a lower salary with better health, dental, and vision insurance over an opportunity with a higher salary but lesser benefits. Providing employee benefits sends an implicit message to job candidates that your business is competitive and financially stable – and it also shows you care about your employees, which can further set you apart in your recruitment efforts.
2. Benefits affect current employee retention.
Fifty-six percent of U.S. adults taking part in a 2018 SHRM survey said that a favorable opinion of their health coverage is a key factor in deciding whether to stay in their current job. Forty-six percent said health insurance was either the deciding factor or a positive influence in choosing their current job. Clearly, health benefits are among the most critical components of job satisfaction – second only to compensation.
3. Group Health Insurance helps reduce stress in the workforce and improve morale.
The Affordable Care Act (ACA) mandates that 10 essential health benefits be included in ACA-qualified health coverage:
- Ambulatory patient services
- Emergency services
- Pregnancy/maternity/newborn care
- Mental health and substance use disorder services
- Prescription drugs
- Rehabilitative and habilitative services and devices
- Lab services
- Preventive and wellness services and chronic disease management
- Pediatric services (including oral and vision care)
Having comprehensive health care services can make a huge difference in the lives of your employees. The Annual U.S. Employee Benefit Trends Study by Metlife found that 74% of employees agree that having insurance provides peace of mind for the unexpected. It has been well-documented that happy employees are more productive and use less sick time, in addition to staying with a company longer.
4. Group Health Insurance offers tax benefits for employers.
Generally speaking, your expenses related to providing health insurance for your employees and their dependents are 100% tax deductible as an ordinary business expenses on your state and federal income taxes. Ask your employee benefits agent about the added benefits of a Premium Only Plan, which can reduce your payroll taxes and give employees the ability to pay their share of premiums with pre-tax dollars.
5. Group Health beats Blanket Health and Individual Health Insurance.
Group Health Insurance is, often, a better choice for your business and your employees than so-called Blanket Health policies because Group Health offers protection that is more comprehensive. As mentioned above, ACA-qualified plans include coverage for essential health benefits that are not part of Blanket Health plans. Typically, a Blanket Health policy offers coverage in connection with accidental injury. If it does cover broader health benefits, a Blanket Health policy may limit the amount it pays toward treatment or services – perhaps limiting coverage to $5,000, $10,000, or $50,000 for the life of the plan. The ACA prohibits health insurers from limiting coverage annually in qualified Group Health plans.
Group coverage may also beat individual insurance for two of the same reasons: no maximum benefits and continuous protection. Once you sign up, coverage will continue for one year as long as you pay the premium.
Finding What’s Right for Your Business
To learn more about the advantages of Group Health, talk with your insurance agent.