Why is Small Business Health Insurance Worth it?

Offering employee health insurance benefits both employer and employee in numerous ways.  Providing both financially and covering medical expenses provides immense psychological satisfaction to the employee.  As a business decision, offering insurance makes sense both in regard to employee relationship and economically.

If a small business has between two to fifty employees, small business health insurance will spread insurance risk and offer a wider range of coverage for all employees.  Most small business health insurance is 100 percent tax deductible, and all you need is two full-time employees, even if one person does not want health insurance.

The employer pays around 50 percent of the premium while the employee pays 50 percent from their paycheck, depending on the insurance company and plan chosen.   Employee portion can be from $1,600.00-$2,500.00 per year, or $133.00 - $208.00 per month.  For many, this benefit is an incentive to be productive and loyal to the employer.

Most businesses opt for group insurance.  Group insurance offers choices within the plan for the individuals within the group.  One person may have a wife and children while another employee may be single.  Each company offers individualized plans to satisfy most of the needs of the participants within the group.  When devising an insurance plan, factors taken into consideration include age, geographical location, health status, smoking and other factors.

Two of the biggest reasons why having small business health insurance are that 60 percent of employees in the US get their insurance from their work.  Statistically, they tend to be more loyal to their employer and are happier with their job.  Second, the employer has lower staff turnover, they tend to attract employees that are more qualified, they save money in taxes and employee health costs.