Posted: Oct 1 ’23
As a business owner, you know that your employees are your greatest asset. Not only do they help you make money, but they also help build
your brand and reputation by bringing their skills, experiences, and talents to work.
But what if one of these people gets sick or hurt on the job? Or what if they need to take time off for a family emergency? What happens,
then? That’s where group health insurance benefits come in. If you consider switching to a group health insurance policy, there’s a lot that
you and your employees stand to gain. Get in touch with a Vistaplan advisor today to learn more.
What is Group Health Insurance Policy?
A group health insurance policy is a type of insurance that provides coverage to a group of individuals rather than just one person. The
group size can range from two individuals to hundreds and even thousands of people. Eligibility for group health insurance benefits is
determined by various factors such as employee status, health status, coverage duration, and more.
Full-time employees are often eligible for group health coverage, while part-time employees may have limited coverage options. Group health
insurance benefits can be offered by employers, unions, and private insurance companies that often sell policies directly to consumers. When
provided by an employer, employees usually pay slightly more for a plan compared to policies provided through a union.
Despite these differences, group health insurance benefits offer a cost-effective way for individuals to access quality healthcare coverage.
With several policies available in the market, it is essential to understand the factors that determine eligibility and to choose the right
plan that meets your unique needs.
How Can Group Health Insurance Benefits Boost Your Business?
Group health insurance benefits are often the most economical way to get coverage for businesses and groups, such as churches and schools.
These plans are often more affordable than individual plans. They also tend to cover the basics, such as prescription drugs, hospital bills,
and other medical expenses, with the option to choose more customized plans. Let’s explore the other advantages of group health insurance
benefits.
Talent Attraction and Retention
In today’s highly competitive talent market, it’s more important than ever for businesses to find new ways to attract and retain top talent.
Many companies have turned to group health insurance benefits to sweeten their offerings and make themselves more attractive to prospective
hires.
Group health insurance benefits provide employees with better access to healthcare services than they might otherwise have. More often,
group health insurance plans cover spouses and dependents of the covered employee automatically. That means that covered members don’t have
to do extra paperwork or pay additional fees.
However, employees taking a group health insurance policy through an insurance company may need to pay an additional fee for their spouses
and dependents. Still, this will be cheaper than buying a health insurance plan for every individual. Group health insurance benefits
demonstrate a commitment to employee well-being, making your business a desirable workplace.
Employee Morale and Loyalty
The relationship between employee morale and loyalty is clear: high morale leads to increased loyalty. However, maintaining employee morale
and loyalty can be challenging. As a business
owner,
it’s important to keep your staff happy as this contributes to the smooth running of the business and eventually satisfied clients. One way
to achieve this is by offering your employees customized group health insurance benefits.
Group health insurance benefits provide peace of mind to employees, as it helps them focus on their work without worrying about the cost of
healthcare. It ensures that they have access to quality medical care without financial stress.
Group health benefits also help build employee morale as it gives employees a sense of belonging. This teamwork, unity, and togetherness can
make employees feel good about coming to work each day and contribute to a positive work environment.
Enhanced Workplace Productivity
Group health insurance is one of the most important parts of a company’s benefits package. It helps employees stay healthy and productive,
boosting workplace productivity. Group health insurance benefits offer employees various coverage options and can help them and their families
manage their health care costs by reducing out-of-pocket expenses.
Here’s how group health insurance benefits can boost workplace productivity:
-
It keeps employees healthy so that they can focus on their work instead of their health issues. These benefits ensure that
employees are energized and dedicated at work. That is, rather than distracted by the costs and logistics of catering to their
healthcare needs. -
It helps employees feel secure in their jobs. When people know they can count on their health care being taken care of, they’re
more likely to stay with the company and work hard to deliver the best results. -
Employees get prompt and quality medical care with a great health insurance plan. This prevents loss of productivity due to
prolonged illness or injuries.
Reduces Absenteeism
According to the Centers for Disease Control, absenteeism costs the Canadian economy $17 billion yearly, not including the cost of replacing
sick workers. That’s a lot of money that could be spent on other expenses such as wages, training programs, and capital investments.
When employees are absent from work due to illness, they miss out on the opportunity to learn new skills, contribute to their team’s
success, and build relationships with coworkers. This can hurt employee morale and workplace productivity.
Fortunately, offering personalized group health insurance benefits is one of the easiest ways to reduce absenteeism in your office. These
plans allow employees to be covered by a comprehensive health plan at a lower cost than individual plans.
Saves on Taxes
Group health insurance is a smart option for businesses looking to save on taxes. The premium payments made by the employer for their
employees’ group health insurance are considered tax-deductible business expenses. This allows the business to subtract that amount from
their taxable income, lowering their overall tax bill.
Employees also benefit from group health insurance benefits, as they are considered a tax-free benefit. The value of the insurance policy is
not included in the employees’ taxable income, thus reducing the amount of taxes they need to pay. This can also lower the company’s payroll
taxes.
However, your business must meet certain requirements to qualify for the tax deduction, including having the policy in place for the entire
tax year. The requirements may vary based on the jurisdiction, so it is important to seek the professional advice of a tax expert to ensure
that the business complies with all applicable laws and regulations. Additionally, married employees filing separately should note that only
one spouse can claim the deduction.
Making it Work for Your Business
Group health insurance is a great way to save money and protect your employees. But it can be confusing, especially if you’re new to the
process. Before choosing group health insurance benefits, research thoroughly and ensure you know the available options. You should also
compare the premiums, terms, and conditions to ensure you get the best deals. Speak to a Vistaplan advisor today
to get more information on group health insurance benefits!
About the Author – David Motkoski
David is a well-respected insurance advisor with over 30 years of experience helping healthcare professionals, business owners, and their
families secure their financial futures. He takes the time to make certain his clients understand the life, disability, and health insurance
products they are purchasing, so they can make the right choices for their budgets, plans, and futures.
WITH ME ON LINKEDIN