Medical insurance – are there two more dreaded words that can be spoken to a small business owner? Small business medical insurance, however, offers numerous benefits and tax advantages that make it well worth the cost of premiums˳
Health insurance for employees of small businesses is a hot button issue˳ Approximately 45 million U˳S˳ residents do not have health insurance˳ Of those, about 20 million are employees, or a family member of an employee, of a business that has 50 or fewer employees˳ For companies that have more than 50 employees, more than 96% of workers have health insurance˳ That number is only about 43% for small businesses˳
What accounts for this phenomenon? You hear over and over again that employee health insurance is one of the biggest expenses that a business owner faces˳ What exactly, though, are those expenses? The business owner is required to pay a percentage of the employee’s individual premium˳ Typically this percentage ranges between 25% and 50%˳ If coverage is extended to the employee’s family members, the employer cannot elect, but is not required, to also pay a percentage of those premiums˳
In addition, small businesses typically must pay larger premiums than businesses with more than 50 employees˳ State requirements that certain conditions, treatments and providers be covered by the group health insurance policy is another reason that small business medical insurance can be costly˳
Small business medical insurance applies to businesses that employ between 2 to 50 people˳ Any permanent, compensated employee that works at least 25 hours per week is typically eligible to enroll in a small business health plan˳
Despite the costs, small business healthcare insurance has very real benefits˳ When you’re able to offer health insurance to job applicants, you are guaranteed to have a more talented pool of candidates to choose from˳ As we’re reminded of daily in the news, quality medical insurance is a major concern for Americans˳
Retention is another benefit of small business medical insurance˳ It costs you less to retain an employee than to seek out and train a new employee˳ If your employees are getting medical insurance from you, they won’t jump ship to take a job with another employer simply to obtain medical insurance˳
Last but absolutely not least, a healthy employee is a more productive employee˳ Having healthy employees, like the retention issue mentioned above, saves you money˳ When an employee is out on a paid sick day, you’re shelling out the cash without getting any of the work˳ So although you’re paying part of your employees’ premiums, you’re saving money in other areas by offering medical insurance˳
Need more convincing? Group health insurance has tax advantages for business owners˳ Typically employer contributions to small business healthcare insurance plans are 100% tax deductible˳
Small business health insurance benefits you and all of your employees in yet another way˳ Health insurance, as you undoubtedly know, can be very expensive˳ With a group health insurance plan, you are spreading the risk amongst all of the employees˳ That means lower premiums and better coverage˳
The arguments in favor of small business health benefits are persuasive˳ Finding affordable medical insurance for employees is possible˳ It all starts with carefully researching the group plans available to your business˳ Be sure that you are working with a legitimate, reputable medical insurance company, and you’ll reap a number of benefits that will ensure a strong return on your investment˳ And health insurance for your employees really is an investment in your business˳
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