• Onyeka A MBA,MS,CNMT,LGBH,CTC

6 benefits of Providing Health Coverage to Employees

Updated: Feb 18



While employer-provided healthcare coverage can be expensive, taking up to 7.6% of annual operating cost, this 2018 Robert Half survey shows that healthcare coverage is top on the list of most desired benefits. A report by eHealth, an online health insurance provider shows a trend of increasing health insurance premiums over the years. Data presented shows the average annual health insurance premium for a family not covered by subsidized insurance rose from $11,964 in 2017 to $14,016 in 2018. In addition to the premium, there’s still a deductible to be paid out-of-pocket which must be met before the insurance company starts picking up the tabs for medical expenses. This represents a huge cost and source of sleepless nights for families. Employer-sponsored healthcare coverage reduces the financial burden and definitely brings peace of mind and relief to families of covered employees. There are also numerous benefits for employers who offer health insurance coverage and we’ve compiled a list of our top six picks.



Attract and retain top talent



Good employees are not easy to come by. One way to shield your practice or organization from losing good employees is by offering health insurance. Healthcare costs constitute a large portion of spending for most families and is offered by most employers. Any employer who is serious about attracting and retaining top talent almost has no choice but to offer some form of healthcare coverage that's appealing enough to prevent employees from hopping over to the next better offer that comes their way.



Get tax advantage



Plan contributions paid towards employee premiums can be deducted from taxes, up to 100% when you offer a qualifying group health insurance plan to your employees. You may also get the benefit of reduced payroll taxes if you offer group health insurance as part of a total compensation package.




Get benefits of ACA incentives

If the Affordable Care Act (ACA) survives, there’s potential for huge tax deductions as an incentive for employer-funded benefits. The ACA offers tax advantages for businesses who offer employee health insurance. The Small Business Health Care Tax Credit makes health care coverage for employees more affordable but employers must offer a qualified health plan through the Small Business Health Options Program Marketplace. Depending on the earning level of your employees, your business may qualify for up to 50% credit off your health insurance costs. The smaller your business, the larger the credit you can potentially qualify for.



Build employee loyalty and trust



What better way to show your employees that you care about them and their families than to provide their number one need - healthcare? As the saying goes, "You get what you give." When you show your employees that you care about their well being, they in turn will reward you through deeper commitment to their work and helping your business succeed. When you earn their trust, they know that they benefit when the business does well and so will likely not easily jump ship.



Reduce absenteeism



When employees call in or just don’t show up, it costs more to hire part time staff as needed to cover for those absent employees. When employees lack healthcare coverage, they are less likely to seek medical help early since they can't afford to pay out of pocket for doctor visits. Delayed care often leads to more serious illness and eventual hospitalization. An employee could end up being out for weeks instead of days as a result of delayed care.


Including wellness perks as part of healthcare plans also helps employees develop and maintain a healthy lifestyle. This reduces the likelihood of developing disease conditions such as diabetes, high blood pressure and other serious conditions that can potentially be costly to manage.



Potential savings in paid salary



Studies show that some employers, especially millennials value benefit packages and pecks over salary. This preference can potentially result in significant savings if you offer desired benefits that may end up costing less than it will cost you to provide high dollar salary packages.


Employers need to invest in researching benefits that are highly desired by the different groups represented in their work force. Employees generally choose benefits and perks over salary. An employer can really come out ahead by offering highly-desired benefits and perks that may cost less than salary but meets the desired needs of employees. The great thing here is that this is a win-win for both employers and employees. The benefits of offering this widely desired benefit far outweigh the cost.