Only a handful of small businesses offer health insurance to their employees. And this is totally understandable. Not every small business has well-established finance.
Uncontrollable costs hamper the small business's budget from offering the employees the needed health insurance. And that is why 70% of businesses with less than 50 employees have no health insurance policy for the employees. The businesses either increase the salary by a little percent or deduct the health benefits altogether.
But looking at the effects of the pandemic, it is fair to say that small businesses without proper health benefits will fall behind in the labor market.
So, without further ado, let's take a look at a few reasons why small businesses must opt for Small Business Health Plans for their employees.
1. Health insurance is easier:
Most people avoid health insurance is due to the challenging tasks one has to go through. Well, let us tell you that you don't have to do anything on your own. In fact, a broker or health insurance advisor will be available to take care of everything.
Your go-to agent will:
- Help you choose the right plan based on the team, work industry, and coverage preference.
- Set up all the things and keep you compliant throughout.
- Answer all the difficult questions your employees have about the chosen plan.
2. Your employees will be happy:
Almost every employee feels that health insurance is one of the major benefits offered by the employer. So, it is vital that you offer one to your employees too. You can then proceed to add any additional benefit over time.
Here are some of the benefits, as per Glass door, that employees find satisfying:
1- Health insurance
2- PTO and Vacations
3- Pension plans or retirement plans
3. You can save on taxes:
You and your employees may require paying less towards the insurance when you purchase it in a group. For instance:
Savings for employees: When the employees buy health insurance, they require post-tax dollars to buy it. Meaning, the employees make money, the government taxes it, and then the employee gets the remaining amount.
- But when the insurance is a group plan, the insurance is paid using pre-dollars, resulting in a saving of 30 to 45% from the employee's end.
Savings for employers:
Here is how the employers save - The employer's contribution is tax-deductible; the employer payroll tax is decreased by 7.65% of the employee's contribution, the employer work compensation premium is decreased.
- Paying health benefits instead of a higher salary will always work in your benefits because you won't require paying payroll taxes or worker's compensation premiums.
4. Gain access to more doctors and medical facilities:
Networks of group insurance are usually larger than individual insurance. And that means you will have access to various doctors and facilities.
Even though the network difference varies from state to state, many states offer an extensive network size for group plans, meaning an increase in access to more and better doctors and medical facilities.
5. Boost employee productivity:
Health insurance is one of the most expected benefits. When your business manages to offer solid Small Business Health Plans to the staff, they become more focused on offering better outcomes through productivity.
Thinking about health insurance drains most of the grown adults. But with a proper plan, you can de-stress your employees and let them focus their energy and time on important works.
Even if your employee has an individual plan, a group plan can shift their burden in a positive way.
Over to you
So, there you go. From building an effective, healthier workforce to actually saving a lot of money, there are many reasons why you must take the dive and opt for Small Business Health Plans Hawaii for your team.
Offering health benefits from UHA Health Insurance will signal your employees that you care about their well-being, thus, building a healthy culture of trust.