When it comes to choosing insurance plans, the sheer amount of information can be rather overwhelming. With open enrollment for 2018 beginning this month, it’s important to know your options for providing coverage to your employees. One such option that we recommend is a small group health insurance plan which has many advantages for small businesses and provides great coverage to your team. Employees invest a substantial amount of their time and energy into your business, they should receive compensation other than just a paycheck to reward them for that effort – in the form of healthcare benefits.
A small group health plan allows your employees more freedom and less stress than other healthcare plan options. This type of plan will be particularly enticing to graduates and seasoned professionals looking for a company that will allow them comprehensive benefits. This will allow new employees to sign up when hired and allow them to relax and not worry about their coverage in the long run. Having a small group plan for your employees can lower your hiring costs by recruiting and retaining talented employees. 78% of small business owners said it increased loyalty and decreased turnover for employees. This will also show your employees that you care about their health and wellbeing – which will keep them happy in their job. When your employees are taken care of, they’ll want to return the favor.
Another great advantage to the small group health plan is that it’s likely to save you money in the long run. As a small business owner, any chance to save a bit will probably excite you – especially since you’ll still be keeping your employees happy. A small group plan may provide you with lower costs on a per-person basis than buying individual coverage for all your employees, and that money you invest in your employees’ benefits is often tax deductible. The Affordable Care Act also offers small businesses healthcare credits to help offset the cost of insurance. With a group plan, as a business owner you take their part of the premium out of their paycheck before taxes, which will lower the amount of taxes each employee has to pay by reducing their taxable income. This way you’re both reaping the benefits of the small group coverage.
By investing in a small group plan for your employees, you’re fostering a sense of team spirit. Your team can work together to grow your business and improved long-term health. This is especially true if you choose to implement wellness programs for your employees such as step count competitions or weight loss challenges. This will also allow your employees to know that they are covered in the case of medical care and can also engage in preventative services that may help avoid more serious health problems down the road. Having good health coverage for your team encourages them to actively maintain their health and improve their access to services that may be unaffordable otherwise.
The greatest benefit of having group coverage, however is that providing great coverage to your employees health will reduce absenteeism and decrease risks related to poor health in the long run. With coverage, employees are more likely to see a doctor when they initially begin feeling poorly – instead of waiting until things have escalated to pay out of pocket for healthcare. Healthy employees are more productive and less likely to injure themselves on the job. It will also improve office morale if your employees are healthy and therefore happier which causes them to be more satisfied with their jobs. 64% of small business owners surveyed said insuring their employees increased productivity by keeping employees healthy.
As you can see, insuring your small business employees with small group coverage can provide multiple benefits. It may seem like a large initial investment, but the return for your business will keep things running smoother and allow your company to reach its fullest potential – all while keeping employees happy and healthy.
At the McCormick Agency, we love working with small business owners. We are also a small business and understand the challenges that small businesses face. Feel free to contact us for a free consultation.