The Benefits of Group Coverage



According to the Kaiser Family Foundation, almost half of Americans secure health insurance through their employer.  Group coverage can benefit you, your business, and your employees.  However, navigating the complex health care system has become increasingly difficult, complicated, and downright frustrating.  So, is it worth it?  We think so, and here are five reasons why:

 1. Protect Yourself

You need health insurance to protect yourself. As the owner of your business, you need to be healthy for your business to survive.  By investing in preventive care to preserve your own health now, you can protect against potentially expensive and time-consuming treatments in the future.

Small Business insurance can be a lot more flexible than an individual plan.  Your insurance premiums and eligibility won’t depend on your personal medical history.  Since coverage is generally guaranteed issue, neither you nor your employees can be penalized based on your individual health history or medical problems.

 2. Attract Top Talent

Your employees are your greatest investment.  And health insurance is a critical factor in recruiting top talent.  Small businesses can be very attractive, especially to those professionals who may not appreciate a corporate atmosphere or those drawn to the opportunity to shine in a smaller environment.  But you risk losing them without a comprehensive benefits package, especially if they’re weighing your company against a package of corporate perks.

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 3. Offer Better Access to Care

Employees with health insurance are more apt to obtain medical care, including preventive services that may help avoid serious health problems.  Better health outcomes increase productivity, reduce absenteeism, and decrease costs associated with poor employee health over the long term.  Health coverage also keeps costs for care manageable for you and your employees when a major illness or injury does occur.

 4. Keep Employees Happy

Employees tend to be happier with a greater sense of loyalty when they are offered group insurance.  Providing a group benefits package signals to your team that you care about their well-being and that of their families.  There is no doubt that a robust benefits package helps retain talent – it’s a great way to preserve the investment you’ve made in recruiting, hiring and training your employees.

  5. Reap the Tax Benefits

Group benefit plans can be costly, but not as expensive as you may think, especially when you consider the tax benefits that can be significant over time.  Generally speaking, employers pay at least 50% of their employee’s monthly premiums – although many companies pay more since incurring these expenses is not only great for morale, but it’s also tax deductible and tax creditable.

When you offer group health insurance, you’ll be able to write off the premiums you pay as ordinary business expenses.  Tax credits are also available to groups with 25 or fewer employees, with average salaries of $50,000 or less per year.  To qualify for a tax credit of up to 50% of premium expenses for any two years, small business owners must pay at least half of employees’ healthcare premiums.

And with a little additional paperwork, you can set up your plan so that your employees contribute to the cost of health insurance on a pre-tax basis, saving them money as well.

There are affordable group benefit plans that will provide you and your employees with quality health insurance, as well as additional coverages like life, dental vision, and disability.  Research your options today.