As an employer, you may know that current and prospective employees highly value group health insurance benefits. But offering group health insurance is not only beneficial for your workers; it can also lead to significant savings for your business.
Health benefits are crucial for employee satisfaction, but the broader advantages for businesses may be less well-known. Let’s look at why providing employee health insurance is not just a perk but a strategic investment. Following are six benefits of providing employee health insurance that we find most impactful for employers.
1. Access Tax Benefits
One of the most compelling reasons to offer group health insurance is the tax advantages. Premiums paid for employee health insurance are generally tax-deductible as a business expense. This deduction may significantly lower your taxable income, leading to substantial savings at tax time. These tax breaks can make a considerable difference for small businesses operating on tight margins.
2. Reduce Premium Costs
Group health insurance plans typically come with lower premium costs than individual plans. Insurance providers can offer more favorable rates by spreading the risk across a group of people. This means your employees receive comprehensive coverage at a reduced cost, easing the financial strain on them and your business. Lower premiums can free up resources that can be reinvested elsewhere in the company.
3. Attract and Retain Talent
The US labor market is still historically tight, and the trend is expected to continue. Skilled workers have multiple options, and offering group health insurance can set your business apart. Employees view health insurance as one of the most critical benefits when evaluating job offers. Providing it can significantly reduce turnover rates, saving you the costs of recruiting and training new employees. Retaining experienced staff also contributes to a more stable and productive work environment.
4. Increase Productivity
Healthy employees are inherently more productive. When they have access to healthcare, they are less likely to suffer from illnesses that could keep them out of work. Preventive care and early treatment options available through health insurance can mitigate the severity of diseases, ensuring that your workforce remains engaged and efficient. Fewer sick days translate to more consistent productivity and a more robust bottom line.
5. Share the Risk; Earn Rewards
Group health insurance spreads the risk among all members, which can lead to lower claims costs for the insurer. Insurance companies often reward businesses with low claims through reduced premium rates in subsequent years. This decreases your expenses and encourages a culture of health and well-being within your organization. Lower premiums over time create a virtuous cycle of reduced costs and improved employee health.
6. Boost Efficiency and Well-Being with Employee Wellness Programs
Many group health insurance plans have wellness programs designed to promote healthy behaviors among employees. These programs can include gym memberships, smoking cessation programs, and nutritional counseling. Encouraging healthier lifestyles can reduce long-term healthcare costs and improve overall productivity. Employees who feel their employer is invested in their well-being are more likely to be engaged and loyal to the company.
Perks with PT Business Solutions
Investing in group health insurance is a wise financial decision that benefits your business and your employees. We find that healthy, satisfied employees are more productive and loyal, contributing to a thriving business environment. Plus, when you work with us here at PT Business Solutions, you’ll never wait on hold with a provider again because we are your support team and health advocate throughout the year.
For more information on how group health insurance can save your business money while enhancing employee satisfaction, contact PT Business Solutions. We are ready to help you find the best options for your company and ensure you get the most out of your investment.