The establishment of the Small Business Health Options Program gave small business owners a convenient online marketplace in which to compare group health insurance policies. But if you’re still wondering whether you should purchase a group health insurance policy for your employees, check out the following benefits of doing so:
Attract and retain employees. Offering health insurance benefits is one of the best ways to attract and retain the most skilled employees. It’s even more important if other employers in your area are also offering health insurance benefits.
Ensure employee wellness. Preventive care offered by health insurance plans can keep employees healthier, and having insurance coverage means they can get treatment when sick. This translates into fewer sick days taken by employees, and better productivity and fewer scheduling hassles for you.
Save money. Most small business owners focus on the cost of purchasing health insurance for employees. But you’ll also save money, too. Retaining the best employees means you won’t have to find, hire, and retrain new ones. Fewer sick days means greater productivity.
Gain tax advantages. Depending upon your specific circumstances, deducting your group health insurance premiums may save you a chunk of change on your tax bill. Talk to your accountant about tax deductions and how offering health insurance to employees can lower your tax bill.
Take advantage of the small business health care tax credit. If your business employs fewer than 25 people, you may be eligible for a special health care tax credit for purchasing health insurance for employees. And if you’re like most small business owners, you appreciate every tax credit you can get!
Give employees greater purchasing power. Even if you don’t decide to pay for an employee health insurance policy yourself, your employees could get a better rate through a group policy. If doing so provides them with a discount beyond what they would receive by purchasing health insurance individually, they will be grateful for the opportunity.