Health Insurance as an Employee Benefit

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Should Employers Offer Health Insurance as a Benefit to Employees?

When the ACA passed in 2014, it changed the expectations of employee benefits for businesses forever. Employers that used to offer insurance chose either to take rate increases or pay the penalty, changing organizational goals, finances, culture, and much more.

As employers experienced major changes, so did their employees. Many organizations in the non-profit and private sector experienced significant cultural shifts, employee turnover, and other issues due to the change.

Below are several reasons why your organization, non-profit or for-profit, large or small, should offer health insurance.

Show Your Employees You Care

Employee benefits in any form help employers communicate to their employees that they want to provide them with a positive experience, in and outside of work beyond just the paycheck. Employees often wonder if they are expendable – just a means to an end for their employer. A quality health insurance plan, in addition to the logical financial appeal to the employee, also has an inherent emotional appeal to employees like decreasing stress.

Powerful Employee Retention and Attraction Tool

According to a survey in 2016 by SHRM, flexible-working opportunities, professional development benefits, and other in-office and out-of-office benefits have become increasingly popular in recent years, but quality health insurance coverage remains at the core of a competitive benefits package. Showing your commitment to the health of your employee population through insurance is much more powerful in a hiring negotiation when a potential employee has multiple offers on the table than saying you will provide free snacks but do not offer employer-sponsored insurance packages.

Healthier Employees = More Productive Employees

What happens when an employee gets sick and does not have quality personal insurance to help them get back to work quickly? Now you are missing a key employee in your business that you may not be able to cover their position. Plans that include and encourage preventative care options, wellness programs, etc. can help keep employees healthy and therefore more productive at work. The CDC Foundation states “Productivity losses linked to absenteeism cost employers $225.8 Billion, or $1,685 per employee.”

50 Full Time Employees

If your organization is currently at, or knows that it will be growing beyond fifty full time employees, we highly recommend you consider adding a health insurance plan to your benefits package. Organizations with fifty or more full time employees are automatically required by the Federal Government to offer insurance or pay a significant penalty. Penalties can be extremely high, and the financial burden of a penalty may be greater than the cost of offering insurance to your employees. Therefore, it may be worth it to offer insurance and gain the benefits of offering health insurance to your employees instead.

Do your Employees need an Employer Sponsored Plan?

For those organizations that have under fifty employees, surveying your employee base can be a great way to identify whether you should offer health insurance as a benefit to your employees. Getting employee feedback on their current benefits package is an important way to help your team feel involved and attain the information you need to continue to build a positive employer-employee relationship.