There are a number of reasons to offer employee health benefits to your workforce – even if your organization isn’t required to because of its size.
Like? Is it enough that a robust program of employee health benefits will make your people happy? How about the ways it will benefit your bottom line, too? And make your organization stand out from your competitors?
The fact is your employee benefits program is a primary way to demonstrate your commitment to your workers’ overall health and their future, but also a means to strengthen your business overall. The three most important reasons for offering employee health benefits, however, include:
- Successful recruitment and retention hinge on employee health benefits. Numerous surveys rank health insurance as the most requested benefit.
- Healthy employees are present and more productive, 60% of employers say. They are less prone to injuries and missed workdays. The Centers for Disease Control says employees who prioritize preventive care (like regular checkups) also get more accomplished on the job.
- Businesses can deduct the cost of premiums from their federal business taxes, and some small businesses may qualify for a tax credit.
If you employ 50 or more full time equivalent (FTE) employees, you are required to provide employee health benefits to your full-time employees or pay a tax penalty under the “employer mandate” of the Affordable Care Act. Many employers – 54% with fewer than 50 FTE, in fact, do opt to offer health insurance, especially when they consider the tax credits.
Evaluating employee health benefit plans can be complicated, given considerations like networks, costs and perks to that must be balanced – for employees and the employer. Here are top factors to think about:
- Networks. Take a look at the providers that comprise the networks of prospective insurers. Are the medical centers and physicians highly rated? Are a variety of specialties covered? Do your employees have existing relationships with them? Are they conveniently located?
- Costs. You need to consider costs to you as well as to your employees. While lower premiums plans will reduce the amount you’ll contribute toward employees’ coverage, they may boost your workers’ co-pays, deductibles and out-of-pocket expenses. Weigh different plans and cost combinations; the right broker will be invaluable guiding you through it according to your employee demographics.
- Customer service. When claims, questions over co-pays and other needs don’t go smoothly, you and your employees will be frustrated. Customer service ratings are easy to check and should be before choosing a provider for employee health benefits.
- Plan design. This is a complicating factor as each plan option follows a different design, where premiums, deductibles, co-pays and co-insurance can vary, and so can what’s covered and what’s not. It’s another reason to have a broker guide you.
- Perks. You want your employees to have access to healthcare, but think about the bigger wellness picture. Look for plans that are mindful of health and wellness, as evidenced by offers of free or inexpensive perks like telemedicine and fitness rewards.
You may not have to provide employee health benefits, but if your workers come out ahead and so do you...why not look into it?
Contact a HUB broker today to learn more today.