The Affordable Care Act does not require small businesses with less than 50 employees to provide them with health insurance, and so it is to individual business owners to decide whether to offer it or not. While in the past only one in four small businesses provided coverage, things are changing these days with more employers realizing the benefits that come with taking care of their employees’ health.
Most business owners have not even wanted to handle the topic as they deemed it was too hard to get started. On the contrary, the process is as simple as filling a CRA payroll remittance form and it is only done once. Of course, you will need to talk to a health insurance advisor who will help you select the best package that covers everyone in the organization and then set things up.
If you are on the fence with the idea of health insurance, here are points that could help you make up your mind.
- Employees are more productive
A person with health cover will not wait until they are sick to go to hospital but they will get regular checkups whenever they need them. This means they are more productive and as they will worry less about their health and they will also take fewer sick days. The process and cost for setting up individual schemes is would take a load off your employee’s mind knowing if it shifted to the company.
- Makes Employees Feel Treasured
Investing in someone’s heath is a way of letting them k now that you appreciate them and the value they add to your organization. A survey done by Glassdoor showed that the most important benefit to employees s health insurance. If an employer could give that at the start and the build up from that point over time, employees would feel happy and appreciated. Other benefits that ranked up high are vacation & paid time off, and pension plans.
- It Saves you Money
Buying insurance cover as a group saves both the employer and the employee money. A group purchase is paid for pre-tax and so an employee saves up to 45% in health plan costs. Buying a cover individually will take hard-earned post-tax dollars, which is way too expensive. The employer benefits in the sense that insurance contributions are tax-deductible. The employer’s payroll tax is reduced by up to 7% by employee contribution and so it’s good for the bottom line.
Spending a little more on benefits is cheaper for a company than giving salary increments. In fact, the survey above found that 80% employees would prefer benefits to salary increments.
- Gives Access to more Doctors
Some doctors and hospitals do not accept individual insurance, but they do accept group covers. Those are usually the most sought after as they are deemed to offer better services. Having a group insurance cover increases the chances of accessing better medical services from a variety of doctors for better care and medical services.