The Advantages of Offering Cheap Health Benefits

The Advantages of Offering Cheap Health Benefits

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The Advantages of Offering Cheap Health Benefits

With the economy always in rollercoaster mode, people across the country look for ways and means of lowering costs in every avenue of their lives, be it with their shopping expenses or with making large investments (say while buying a home or vehicle).  Businesses large and small also do the same thing- but on a much larger scale and they look for ways and means of lowering their production costs and retaining employees.

The Benefit 

In this respect, companies look for different ways in which they can retain employees and offering Cheap Health Benefits becomes one of the primary ways of doing so. Let’s take a look at the benefits:

  • Attract & Retain Highly-Qualified Employees-Whether medical insurance is necessary to attract & retain highly-qualified employees will be dependent on factors like whether your rivals/similarly-sized employers in the same area are offering this insurance. In this respect, it’s important to avoid healthcare reform assessments.

Note– The Affordable Care Act and its related legislation necessitates that employers with 50/more FTE’s (or a mix of full-time & part-time employees) offer Cheap Health Benefits. In case they don’t, & their employees receive certain premium tax credits to purchase their own insurance, the employers will be subject to assessment. This particular mandate is applicable w.e.f 2015

  • Gain Tax Advantages– A company can offer its employees something which increases their compensation-package and simultaneously allows it a tax deduction for its contribution. This means, the company’s out-of-pocket cost is much less compared to the benefit that the employee gets.

Note– Self-employed individuals are able to deduct 100% of their medical insurance premium-costs as their business expense and 100% of premiums towards Cheap Health Benefits for their employees. In the case of an incorporated business the complete costs for the business owner’s insurance and that of their employees’ is also deductible

  • Small Business Healthcare Tax Credit– Small businesses that have < than 25 employees might be eligible for a tax-credit for purchasing health benefits for employees

Note– Employees get group-purchasing power. Even if a business owner decides not to contribute any amount toward their employees’ medical insurance; they are still able to give them the opportunity to obtain Cheap Health Benefits in terms of group rates via the business. In addition, small businesses (with 50/less FTEs) can buy healthcare coverage via a government-operated insurance marketplace that is established specially for them- SHOP (Small Business Health Options Program)

  • Ensure Wellness of Employees– These health benefits offer effective preventative care- this keeps employees healthy & coming in to work on a regular basis. If the employees do not get any preventative care & annual physicals (which they probably won’t in case they don’t have any insurance), a business may just end up having much more employees out for longer periods of time with various illnesses

Regardless of which angle you look at it from, Cheap Health Benefits are advantageous to employers and employees alike. It’s an excellent way of retaining good employees and increasing the profitability of a business.

Employers Resource helps every business at all stages with growth and development. Find out more! Call us today at (800) 559-2350.

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