Offering health insurance to employees is a consideration that practically every business owner must face not only once, but time and time again. There are many aspects of the decision to consider, most notably cost. In this issue we will do our best to squeeze the vast waters of small business health coverage into a fishbowl full of most notable pros and cons.
If you are an employee, this issue is also for you. There may be pros that your employer has not yet considered, so this may be just the tool you need to help them choose a benefits solution that will work for you.
So, together we go… Into the fishbowl.
First and foremost, it is important to consider that health care benefits, along with time-off benefits, are the most popular among employees. Offering these keeps your business competitive, so that you can attract and maintain talented and hardworking employees. This is, of course, definitely a pro.
As we’ve covered before, if you have more than 50 full-time equivalent employees you are legally required to provide health insurance benefits. For more information about this, see Issue 3 of our newsletters.
If you have fewer than 50 full-time equivalent employees, the choice is yours. Take into account:
- Attract and Retain the Best Employees. This is particularly important to consider if other employers of the same industry and size as yours are offering these benefits.
- Tax Advantages. Self-employed individuals can deduct 100% of their health premium costs from their income when filing taxes. They can also do so with those of their employees. Also, if an employer has fewer than 25 employees and they offer health benefits, they become eligible for a tax credit.
- Group Plans for Employees. You can offer employees tax benefits without contributing to their deductibles by setting up a group health plan that they can purchase into. By purchasing health benefits through the group, their premium rates will be significantly reduced.
- Keep Your Employees Healthy. When your key employees are forced to take time off because they are sick, this can take a significant toll on your business. Employees without health insurance are less likely to engage in preventative care and yearly physicals, and are therefore also more likely to face serious illness.
- The Cost. Healthcare has become incredibly expensive. Employee retainment is important, but having a viable and sustainable business is clearly mandatory.
- Administration. While your healthcare provider will provide plan administration, there is definitely still the business of choosing programs and filling out forms, as well as managing any issues that arise between your employees and the health care provider. Fortunately, The Point can take care of most of this work, mitigating the time investment for you.
Overall, there seems to come a point in every business where the costs of offering health benefits to employees are certainly outweighed by the benefits. If you are still not sure whether this is true for you, or if you’ve already decided that it’s time to provide, call us. We’re happy to help.
Want to get started with a group plan? It’s easy!
Just complete our census form and we’ll send a proposal showing the best health insurance package options for you and your employees. We will make the process simple and enjoyable for you, while also capturing the maximum available benefits for your business.
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