One of the types of employee benefits that are regarded as important by job seekers and employees is health insurance.
As the cost of health care continues to rise, it is becoming increasingly necessary for employees to have adequate health insurance sponsorship from their employers.
Employer-sponsored insurance can vary significantly from one company to another, and employers who offer better health coverage for their employees are usually more successful in hiring top talent.
Here is a look at why it is important for businesses to have an employee health benefit plan….
Employer-Sponsored Health Insurance in the U.S.
Private health insurance coverage in the U.S. is mostly employment-based.
Most of the larger companies in the country provide group health insurance for their employees, and their health benefit plans are usually more generous than Medicare or the standard health benefit program for government employees.
Typically, employers pay about 85 percent of their employees' health insurance premiums and 75 percent of the premiums of their employees' dependents, and employees pay the rest with their pre-tax earnings.
The rising cost of health insurance over the last decade or so has caused many employers to cut back on employee health benefits.
According to a Robert Wood Johnson Foundation report, the percentage of Americans receiving employer-sponsored health insurance fell from 69.7 percent in 2000 to 59.5 percent in 2011. The implementation of the Affordable Care Act, or Obamacare, is expected to make matters worse.
Starting this year, all businesses that have 50 or more employees are required to provide health insurance sponsorship for all their employees, or they have to pay a fine of $750 per employee to the federal government.
Many business owners are choosing to pay the penalty instead of providing health insurance for their employees because it is a more cost-effective option for them.
Meantime, some businesses are trying to reduce their workforce or cut work hours to avoid the penalty or save on health insurance costs.
Importance of Providing Health Insurance for Employees
In their endeavor to cut costs by dropping health insurance, business owners will miss out on the benefits of having an employee health plan.
They need to properly address health insurance considerations for job seekers and employees if they want to hire and keep the best talent. Many job seekers and employers have trouble paying the high costs of individual or family health insurance plans, and they have to rely on employer-sponsored health insurance to keep themselves and their family members healthy.
As such, they will very much prefer to work for companies that offer employee health benefits. Other than helping business owners recruit and retain the best employees, an employee health plan can also improve employee satisfaction and morale, and reduce absenteeism, which can lead to an increase in productivity.
A healthy and happy workforce can contribute significantly to the success of your business.
As such, it is essential that you implement a good employee health plan.
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About the Author: John McMalcolm is a freelance writer who writes on a wide range of subjects, from social media marketing to Cloud computing.