Like group life insurance<\/a> and other employee-provided benefits, group health insurance gives employees peace of mind by handling a significant portion of their expenses \u2014 in this case, by paying a large part of their medical expenses.<\/p>\n\n\n\n As an employer, there are a number of benefits that sponsoring health insurance for your employees provides:<\/p>\n\n\n\n When employees are healthy and take preventive measures to take care of themselves \u2014something that\u2019s far easier with reliable health insurance\u2014 they are less likely to take frequent absences. It also means they will be more physically sound and able to treat injuries and illnesses better.<\/p>\n\n\n\n In the hiring process, high-value employees will often be in the process of weighing different job offers from several companies. In this case, they will have some degree of leverage in negotiating their salary, etc. If you offer a compelling health insurance package, it can mean the difference between the employee choosing your company over the competitors.<\/p>\n\n\n\n If your employees feel taken care of in terms of both compensation and benefits, they are more likely to stay with you. The high cost of individual health insurance can provide a real incentive to stick with an employer that\u2019s shielding them from having to pay out of pocket. This is an excellent value to the employer as well, as replacing employees is an expensive process.<\/p>\n\n\n\n When offered competitive group health insurance, workers feel valued by their employers. This translates to more favorable opinions about their workplace and a higher value placed on their role in the company.<\/p>\n\n\n\n If you forego a group health insurance policy and instead opt for private health coverage policies, it will inevitably lead to far greater friction and confusion than a streamlined group health insurance plan. Your employees will be able to simply sign on and get on with their jobs.<\/p>\n\n\n\n Group health insurance outperforms individual policies while beating their price points. This is partially due to the rising costs of individual health insurance, which has both higher premiums and higher deductibles than group health insurance plans, per person. This means you could be saving your employees thousands each year. The relatively high insurance cost of one high-risk employee is also less pronounced if they are one member of a larger pool.<\/p>\n\n\n\n Additionally, offering group health insurance gives you a healthy deduction from your business taxes. In some states, you may also receive tax credits.<\/p>\n\n\n\n In the United States, around 157 million people<\/a> are covered by employer-provided health insurance. In order to understand the current averages\u2014 that is, what types of coverage others are providing in the U.S. workforce\u2014 we turn to the Kaiser Family Foundation\u2019s 2020 annual survey. This survey included private employers with a wide range of company sizes, with a minimum of three employees.<\/p>\n\n\n\n The following are the numbers for average employer-sponsored health insurance in 2020. Note that this is the cost per employee:<\/p>\n\n\n\nFewer Sick Days<\/h3>\n\n\n\n
Better Recruitment<\/h3>\n\n\n\n
Better Employee Retention<\/h3>\n\n\n\n
Better Company Morale<\/h3>\n\n\n\n
It\u2019s Less Resource-Intensive Than Private Health Plans<\/h3>\n\n\n\n
It\u2019s Cheaper<\/h3>\n\n\n\n
Average Employer-Provided Health Benefits<\/h2>\n\n\n\n
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