Did you know 89 percent of state and local government employees get healthcare benefits? Only 27 percent of private-sector workers receiving the lowest 10th percent wage can get health coverage. While 94 percent of workers in the top 10th percent wage group can get corporate health insurance.
As an employer, investing in a small group insurance plan for your company can be a wise choice. Keep reading to learn about the benefits of offering this employee option.
What Is Corporate Health Insurance?
Corporate health insurance is bought by employers to help employees with health coverage. These plans vary in the coverage provided.
Employers can choose to partially fund the health plan. Depending on the contract, for example, it may only cover hospitalization.
The workers can often select between a fully or partially funded policy. Some programs set employee co-pays and yearly deductibles. They may also require the worker to pay a monthly premium for health insurance.
Benefits of Group Company Insurance Plans
As an employer, you may have a tight budget. Choosing to offer health insurance to your employees may seem like an expense you can skip. The following provides examples of the value of making this investment.
1. Better Choice for the Employee
Individuals who buy individual healthcare often pay more than with employer-based plans. There is an exception for families with an income of less than 400 percent of the poverty level. When buying health coverage on the Affordable Care Act exchange, you get government subsidies.
For many people, the best option for health insurance comes from group insurance plans.
2. Increases Employee Recruitment
Offering health insurance as an employee benefit is a significant recruiting tool. It also increases your competitiveness in the industry for the best employees.
One survey asked participants about the “level of consideration” they give to employee benefits. They had to choose between high-paying jobs vs. low-paying jobs with better benefits. Better health, dental, and vision insurance ranked as the number one consideration.
3. Increased Employee Retention
Once you’ve spent the time and money to hire and train a new employee, retention is key. Buying group insurance can promote employee loyalty which translates to a stable workforce.
4. Pre-Tax Spending for Employees
Monthly insurance premiums are often lower for employees with group health insurance. Another big perk is that premiums payments are usually paid out of their pre-tax salary. This increases the worker’s health insurance savings by lowering their tax bill.
Since the employer takes the premium out before the salary tax, they have a lower tax payment as well. It’s a win-win for both parties.
5. Increased Employee Access to Care
Workers with health insurance often participate in routine, preventative health visits. Prevention is an important key to maintaining wellness.
It’s more cost-effective to pay for wellness care than to treat serious diseases and injuries. This leads to fewer sick and injury days off and improved productivity.
Are You Looking for Affordable Insurance?
There are many advantages to investing in corporate health insurance. At FutureWise, we help clients find a cost-effective option for health and life insurance. Our team works with major insurance carriers to offer choices that meet your needs.
FutureWise provides an easy method for setting up tax-efficient, group insurance. Contact our team today to learn about group insurance options and receive a free quote.