An employee benefits package can include a number of perks, but health insurance tends to be a benefit that employees value most. According to a 2018 survey from the Society for Human Resource Management:
This information supports the idea that health insurance is a sought-after benefit that determines whether employees will join — and stay — with your company. There are other advantages to offering employee health insurance, too.
The national unemployment rate in the U.S. was 3.5 percent as of September 2019. States like Colorado have even lower unemployment rates — September 2019’s rate was 2.8 percent.
These might sound like indicators of a healthy and balanced economy, but economists estimate that the natural rate of unemployment is between 4.5 to 5 percent. When the rate is as low as it is right now, employers need to offer more benefits to entice workers.
While it’s true that providing employee health coverage will cost your business, group insurance plans save money for the employees who are enrolled, and because employer contributions to premiums are tax-deductible, paying for employee health insurance also lowers the company’s taxable income.
Additionally, employer payroll taxes and workers’ compensation premiums generally decrease when a company offers health insurance to its employees. Some small businesses even offer robust health insurance packages in lieu of higher wages, which reduces costs further and can save everyone money.
Group health insurance often gives small business owners and their families access to better health coverage than they can get independently. Group plans tend to have larger networks with more doctors and facilities, and you, as a small business owner, can enroll yourself and any dependents in the plan.
Without good health insurance, individuals may not visit the doctor as often to handle basic health and wellness needs.
Even if someone is healthy overall, worrying about the what-ifs of healthcare can take a toll on a person’s physical and mental wellbeing. Offering health coverage can be a great way to provide the peace of mind employees need to stay healthy, focused, and productive at work.
The health insurance regulatory landscape is constantly changing, and it can be difficult to stay on top of your company’s legal obligations. Requirements vary from state to state, but Colorado employers can contact the Rocky Mountain Health Plans (RMHP) team for guidance and information about making the decision that may be best for their companies.
We’re here to help, so contact us or learn more about Colorado employer group health insurance from RMHP.