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Posted: 1 Jan

Great Reasons for Small Business Owners to Offer Employees Group Health Insurance Benefits

Great Reasons for Small Business Owners to Offer Employees Group Health Insurance Benefits

As a small business owner, you should understand the critical role that your employee plays in the organization and what they expect from you. Offering your employees a group health insurance plan may seem like a costly move that will bankrupt your business. However, it's actually a critical investment that will pay back in several ways. 

If a group health insurance plan has ever crossed your mind, now is the time to actualize it and stand a chance to win over your employees and let them know how much you value them. We've highlighted everything you need to know about group health insurance benefits, from how it works and its benefits to factors you should consider when choosing an insurance plan. Call us today to learn more from a Vistaplan advisor.

Overview of Group Health Insurance Benefits 

Group health insurance benefits are also known as employer-based insurance. Plans for group health insurance provide medical coverage to members of organizations or staff of a company together with their dependents. The insurance company charges affordable premiums since there is a spread of risk among those insured. Members also benefit from a cheaper insurance plan, which shields them from unforeseen expenses brought on by medical occurrences.

The employer and employees pay a portion of the cost of a group health plan. Employees are responsible for a certain percentage of their health insurance costs while the employer covers the remaining premiums.

Here, you need to have a group of people purchase group health insurance benefits. In other words, a single person cannot enrol in this insurance plan. However, the group size during enrollment can be as small as two people for smaller businesses. Your employees should, however, have a participation rate of at least 70% for your business to qualify for group health insurance.

Advantages of Group Health Insurance Plan   

With group health insurance, both the employees and the employers benefit. Here are the main benefits of having group health insurance.

It Helps Boost Employee Attraction and Retention

How you treat employees is key to retaining them for the longer haul. As a business owner, you should ensure all your employees are well rewarded. Aside from the known random bonuses, you can spice things up with a group health insurance plan, even if your employees never ask for one. This will be pretty helpful in nurturing trust and loyalty amongst your employees. 

Group health insurance benefits will also come in handy when hiring for critical or competitive positions. Most employee value group health insurance benefits from an employer as it cushions them against unforeseen financial and health challenges. If you have great group health insurance, your employees will feel that you value and care about their well-being and that of their dependents. 

It Boosts Productivity

Group health insurance benefits often go a long way in ensuring employees feel better about their current working status. This is because they will feel more valued and appreciated in their workspace, making them more productive. 

In addition, your employees will feel safer and with peace of mind knowing they have a health insurance plan. This enhances their overall well-being, providing room for more productivity. The insurance benefit will also improve your employee's motivation to work with your business hence more success in the long run.

Great Reasons for Small Business Owners to Offer Employees Group Health Insurance Benefits (1)

It's an Efficient Tax Planning Solution

One of the main advantages of taking group health insurance for your employees as a small business owner is the tax incentive you will enjoy. The tax benefit is available for small businesses offering a health insurance program with less than 25 employees. 

Such businesses will be entitled to a health insurance premium tax credit equivalent to or less than $3000 for family coverage, $1000 for individual coverage, or 50% of the total premiums paid. In addition, since the employee's premiums can be made pre-tax, the overall taxable income is reduced.

It Offers Cheap Financial Assistance

Group health insurance benefits offer a cheaper way to get insured, especially for people who cannot afford individual insurance costs. Getting group insurance will also mean getting a better insurance plan and conditions due to the larger pool. Such a health benefits program for your employees will cover medical costs, thus helping them cut critical medical bills. In the long run, happy employees mean a smooth-running business.

How to Choose Group Health Insurance Benefits 

As a business owner, shopping for group health insurance benefits can be overwhelming since you probably don't have a team to help you compare plan after plan. Fortunately, finding the ideal group health insurance is easier than you might think. You ought to be constantly vigilant to these critical factors for you to choose a group health insurance policy that is most suitable for your company:

Consider Affordability and Sustainability

Group health insurance can be a huge expense for a business owner, depending on several factors. As a result, you should consider a reasonably priced group health insurance plan that can provide your employees with extensive coverage and crucial features. Include the add-on benefits, if necessary, after carefully weighing the policy's costs and benefits.

Remember, if you implement group health insurance benefits, you will have to maintain this for many years. Therefore, the add-ons should be introduced gradually so that you can determine whether the costs are manageable.

Focus on the Features and Quality of the Services Offered

The scope of the group health insurance benefits plan includes both its features and the insured sum. You should ensure the insurance policy offers high-quality health care coverage and covers serious illnesses. Here are the crucial elements to consider when selecting a group health insurance plan:

  • The inclusion of pre-existing medical conditions.
  • New-born and maternity coverage
  • The rooms’ rent limit. 

The room rent limit is crucial because employees are frequently dissatisfied if they have to stay in a room that falls short of their expectations whenever they get hospitalized. 

Choose Your Plan Today!   

Group health insurance benefits are an intelligent and practical choice for providing coverage for all group members under one plan. Such an insurance plan benefits the group's individual members and the entire organization or business. If you don't have group health insurance benefits for your employees, now is the time to get one. Get in touch with a Vistaplan advisor today to guide you in choosing the best policy.

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About the Author - David Motkoski

David Motkoski—At the Helm of Vistaplan Financial Group

David is a well-respected insurance advisor with over 30 years of experience helping healthcare professionals, business owners, and their families secure their financial futures. He takes the time to make certain his clients understand the life, disability, and health insurance products they are purchasing, so they can make the right choices for their budgets, plans, and futures. CONNECT WITH ME ON LINKEDIN

Life & Disability Insurance for Alberta Health Care Professionals, Business Owners, and Their Families Since 1983