Health insurance coverage is important generally as we all must visit a doctor or medical specialist on occasion. And the costs incurred for even low to moderate use of medical services can be quite high.
A typical office visit for a general practice or family physician can range from $150 to $300 or more. A relatively minor issue treated in an emergency room can easily total over $1,200 and it’s not at all uncommon to be billed for $10,000 or more.
Consequently, having access to employer-sponsored health insurance coverage is important to both employees and their employers.
According to one article,
“The Kaiser Family Foundation reported that annual premiums for employer-sponsored family health coverage reached $19,616 in 2018, increasing 5% from the previous year. Since the year 2000, premiums have increased over 300%. That means, on average, healthcare accounted for 8% percent of operating expenses in 2016.”
Employer’s Benefits of Health Insurance Coverage
Employers benefit not only from having coverage for themselves, but in a number of ways by providing it for their workers.
According to an article to the Chron.com Small Business site,
Recruiting and Retention
Offering health insurance benefits can give you a competitive employee recruiting advantage over other small businesses that do not offer coverage. …it can also serve as an incentive for them to stay with you, reducing the costs of employee turnover.
Tax Advantages
Offering health insurance can provide certain tax advantages for small businesses. For instance, federal legislation enacted in 2010 included the Small Business Health Care Tax Credit.
Personal Benefits
As a business owner, you also directly benefit from group health coverage, as you and your family can also elect to participate in the plan. Obtaining individual coverage can be difficult, particularly if you have any pre-existing health conditions.”
While, employer-provided health coverage is important for recruiting, it’s even more important for retention. In fact, a 2018 survey revealed that:
- 56 percent of U.S. adults with employer-sponsored health benefits said that whether or not they like their health coverage is a key factor in deciding to stay at their current job.
- 46 percent said health insurance was either the deciding factor or a positive influence in choosing their current job.
From a simple ROI perspective, consider that your company’s costs for employee group health coverage is offset significantly by lowered recruiting, hiring and training costs.
If your employees have affordable access to health coverage, they are more likely to go to the doctor when they’re sick and take care of regular preventative procedures such as exams and diagnostic tests.
As a result, this benefits employers by having healthier workers, which can lower other labor costs – especially the cost of short-term and long-term disability insurance and workers’ compensation.
Employee’s Benefits of Health Insurance Coverage
A quick look at the prevailing costs for medical services without insurance makes it fairly obvious how coverage can benefit your employees. But the benefits go far beyond mere affordability. However, as an employer, it is important for you to understand beforehand what the actual healthcare needs of your workforce are.
An article from the Society of Human Resource Management (SHRM) offers this advice,
“‘You have to know your employees and what they want,’ from their health benefits, advised Paula Harvey, SHRM-SCP, vice president for human resources at Schulte Building Systems, a 600-employee metal-building fabrication company in Hockley, Texas. ‘Don’t just sit in your office looking at claims numbers. Get out and talk to your employees, find out what’s working for them.’
‘It’s hard for employees to take time away from work to use their health benefits,’ she noted. ‘We all have sick days we can use, but if we’re thinking about increasing vaccination rates or primary care visits, why don’t we offer individuals ‘healthy days’ so they can access preventative care services,’ giving workers the flexibility to use their benefits.”
In other words, a quality healthcare plan includes accessibility and relevant services, as well as affordability.
Yet, affordability probably tops the list of benefits for employees.
According to a recent poll, it was found that 44 percent of Americans chose to forego a doctor’s visit, despite being sick or injured, because of the costs. In addition, 40 percent of people indicated that they’ve declined recommended medical tests or treatment because of the cost.
A Clutch survey indicated that a whopping 73% of employees receive benefits of some kind from their employer, and 55% of those people said health coverage was the most important in terms of job satisfaction.
Other benefits of employee health insurance include the following:
- Maintaining better or optimum physical health contributes to positive mental health
- Having affordable health care coverage adds to a sense of company loyalty and increases employee engagement
- Healthier employees tend to exhibit great positive morale and general sense of well-being
- Access to quality health care combined with the flexibility to take the needed time off reduces overall stress while increasing employee job satisfaction
While offering health insurance may seem expensive and complicated, it is an established fact that the majority of your employees highly value a quality health insurance plan.
Offering Employee Health Insurance Matters
As an employer, it’s important to offer the best employee health insurance options possible. Your employees represent not only the most valuable assets and resources of your company, but they also represent the bulk of your company’s investment. And, as we’ve illustrated here, it’s essential to provide the means to help ensure their health and well-being.
With this in mind, every employer’s goal should be to work with a California health insurance agent who is properly licensed, has a good track record, great references, is responsive and forthright, and – most importantly – holds service to their clients as a priority.
J.C. Lewis Insurance Services is a family-owned and operated California health insurance agent licensed to do business in California, we specialize in medical insurance plans for small businesses, as well as for individual and families, and people with Medicare.
We can tailor our recommendations to your particular needs since we are licensed with most major carriers in California. You save time and money, and we can quickly define your particular needs and recommend the best products and price to meet those needs.