Small business owners have a lot on their plate when it comes to managing their company. An important aspect of this is taking care of your employees. One way you can do this is by offering health insurance benefits. In fact, offering health insurance to employees has many benefits for both the business owner and the employees.
In this article, we will explore the percentage of small businesses that offer health insurance to employees and why it is essential to do so.
What percentage of employers provide health insurance?
According to the Small Business Association, only 50% of small businesses (3-9 employees) offer health insurance to their employees. However, there are many reasons why small business owners should consider offering health insurance.
Why is it important to offer employee health insurance?
For one, it is a great way to attract and retain employees. When a small business offers health insurance benefits, it shows employees that their employer cares about their well-being.
Additionally, offering health insurance can help lower the cost of health care for employees. Group health insurance plans are often less expensive than individual plans, which can save employees money on premiums and costly out-of-pocket expenses.
Another reason why small business owners should offer health insurance is that it can help improve employee productivity and morale. When employees have access to health care services, they are more likely to stay healthy and take fewer sick days.
Additionally, employees who have access to health insurance are more likely to seek preventative care, which can help catch health problems early on before they become more serious.
How can small business owners provide health insurance to their employees?
There are several ways to go about it. First, small business owners should research and compare different health insurance providers to find the best fit for their company’s needs and budget. This can be done by seeking recommendations from other business owners or using online resources to compare the coverage and costs of various plans. Here are 3 ways you can offer employee health insurance:
1. The first option is to purchase a group health insurance plan from a private insurance company. This can be a great option for small businesses that have a larger number of employees.
2. You can also chose to use a health insurance marketplace, such as Healthcare.gov or state-based marketplaces. These marketplaces allow small business owners to compare and purchase health insurance plans for their employees.
3. Finally, small business owners can also self-insure their employees. This involves setting up a health plan and funding it themselves. While this can be a more expensive option, it can also give small business owners more control over their health insurance benefits.
It is important to note that there are some legal requirements for small businesses when it comes to offering health insurance benefits. Under the Affordable Care Act (ACA), businesses with 50 or more full-time equivalent employees are required to offer health insurance benefits to their employees. However, there are also tax credits available for small businesses that offer health insurance. These tax credits effectively offset the cost of providing health insurance.
Offering health insurance benefits to employees is essential for small business owners. While only around half of small businesses currently offer health insurance, there are many benefits to doing so, including attracting and retaining employees, lowering the cost of health care for employees, and improving employee productivity and morale.
By offering health insurance benefits, small business owners can take care of their employees while also helping their business succeed.
Don’t wait any longer to secure the future of your business and employees.
Take Initiative by exploring various health insurance options tailored for your small business needs.
Reach out today and receive valuable resources, tips, and expert advice on choosing the best health insurance plan for your team.
Remember, investing in employee health insurance is not only a smart business move but also a way to show you truly care about the well-being of your workforce. Let’s work together towards a healthier and more successful future for your small business!