5 Benefits of Providing Group Health insurance to Your Employees

5 Benefits of Providing Group Health insurance to Your EmployeesGroup health insurance has been a benefit offered by employers for decades. The plans are simple to understand and give employees many benefits. Although healthcare laws are changing, group insurance will still be one of the most effective ways to supply health coverage to workers. There are five benefits of providing group health insurance to employees.

Lower Premiums for Employees

Group health insurance plans are popular with employers and employees because they spread risks and costs over a large number of people. This lowers the amount each employee must pay for premiums and even deductibles in some cases. The health insurance becomes much more affordable for everyone. This is especially beneficial to large companies who have extensive workforces sharing the costs of health insurance.

Tax Incentives

Employers benefit from group health insurance plans because there are clear tax incentives. Most employers are able to deduct the full cost of all premiums paid each year. This helps to minimize the cost of providing coverage to employees. Additionally, benefits that are received by employees are not taxed. These tax benefits will help to control the cost of health insurance benefits.

Simple Management

A large number of group health insurance providers offer a single plan to companies that will cover all employees in the exact same way. Employees all share the same benefits and costs. This makes managing the group insurance much easier than dealing with a variety of smaller plans. There are even companies providing third-party management services and software suites to make the task simpler. With the right ADP solutions, businesses can easily manage most aspects of group insurance from payroll deductions to compliance with new laws.

Meet Healthcare Coverage Requirements

The Affordable Care Act (ACA) makes it necessary for a large number of businesses in the country to provide health insurance to employees. The insurance must meet particular coverage criteria. Businesses that do not provide coverage will have to pay an annual fine that will eventually exceed the cost of group policies. Providing group health insurance to employees will allow businesses to meet employer mandate requirements and avoid costly fines.

Maintain a Healthier Workforce

Businesses that provide group health insurance will have a healthier workforce. Preventative care and other services will reduce the number of serious injuries or illnesses employees’ experience. Healthcare coverage also provides fast treatment for different conditions. The result is lower absenteeism and better productivity. A healthier workforce also tends to be happier with higher levels of job satisfaction.

Author Bio

Hayley is a freelance blogger, author and business consultant. Away from the office she enjoys spending time with her two young daughters and husband.

 

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Wednesday, 14 November 2018
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