These days, one of the biggest benefits of full-time employment is eligibility for the employer’s group health insurance plan. And as healthcare reform continues to evolve and affect individuals’ and families’ lives and finances, group health coverage through an employer becomes an increasingly valuable perk.
Having a sizable portion of medical costs paid through an employer’s benefit package can be quite a comfort. After all, it’s no exaggeration to say that with the exception of the highly affluent, an individual without health insurance can be literally just one major injury or illness away from financial ruin.
Here are key employee benefits of employer-sponsored health coverage – and why you should be offering it:
- It can reduce absenteeism. A healthy employee is present and more productive. And the more physically sound workers are, the less prone they are to injuries and less likely they are to miss workdays.
- It can be a recruiting tool. Sought-after employees often have the advantage in negotiating job perks and benefits. If a potential employee is deciding between two jobs (or if a current employee is thinking of leaving), benefits like a superior health insurance plan can tip the balance in your favor.
- It can increase retention. Employees are more likely to stay with a company that offers valuable insurance benefits, as they can be far more costly to replace on an individual basis.
- It can boost employee satisfaction. Workers tend to place higher value and feel more favorable about jobs and employers that provide good health benefits.
- It’s convenient. Don’t underestimate this benefit. Spending time and effort looking for private health coverage on healthcare.gov or on a state-sponsored online health exchange can be confusing and stressful. When you offer employer-provided group health insurance, your employee can choose your plan and avoid that search.
- It can save money. Speaking of online health exchanges: While the Affordable Care Act helped reduce medical costs for many Americans, some may actually experience increased costs. By offering your employees group health insurance, you could potentially save them thousands of dollars per year.