As a business owner, you may be wondering whether or not to provide health insurance for your staff. Providing health insurance can not only help attract and retain top talent, but also provide protection for both your business and your employees in the event of unexpected medical expenses. However, it can seem like an overwhelming expense on your part.
49% of employees will leave their job in the next 12 months over a lack of benefits, and health insurance is the most frequently offered benefit (TeamStage). In this article, we will explore the different types of health insurance options available to businesses, and the considerations to keep in mind when choosing whether or not to offer this benefit to your staff.
Cost of Living Crisis
With the cost of living rising and NHS queues increasing, employees are becoming more and more concerned about their health. Many are unable to get the NHS support they need, but lack the savings to turn to private healthcare. This is leading people to think twice about going to the doctor if they deem a concern to be minor enough.
Many businesses, including small and medium sized businesses, are offering competitive solutions. Private medical insurance for employees can make a huge difference in employees’ quality of life. Businesses are offering increasingly impressive insurance packages, including prevention, intervention, symptom management, and treatment.
Typical packages include access to private GPs or nurses 24/7, and a certain amount of treatment per month for things like physio, dental and optical care. Find out more here.
Health insurance can take a huge weight off your employees’ shoulders. It ensures that their health conditions are treated early and quickly, which reduces their time spent off work and increases their productivity.
It also greatly increases their quality of life. Not only does it tackle their physical health problems, but also their mental health issues such as chronic stress and burnout. This sort of support could be hugely important to keeping your employees happy and productive.
In the UK, small businesses might be eligible for tax relief on the cost of providing health insurance for their employees. This health insurance is generally tax-deductible as a business expense.
Employees might also be able to contribute to their health insurance premiums on a pre-tax basis through a salary sacrifice arrangement. This could lower the overall cost of health insurance for both the employer and the employee.
The cost of employee health insurance not only depends on the provider and the plan, but the number of employees. Health insurance can be expensive, and it is important to make sure that you can afford to provide this benefit to your employees. There are some things you can do to keep costs low and get more value for your money.
Offering employees group purchasing power can be a way for businesses to provide health insurance coverage at a lower cost. Group purchasing power means you can negotiate lower prices on health insurance because you are offering it for a large number of individuals.
You should also shop around and use online price calculators to get quotes on the best deals. Avoid going to the first deal you see, and do some research before you jump to sign up for a specific insurance plan.
Needs of Employees
Different employees will have different health needs, so it is important to choose a health insurance plan that encompasses the needs of all your employees. Here are some key factors to consider when evaluating the health insurance needs of your employees:
- Pre-existing conditions: Some employees may have pre-existing medical conditions that require ongoing treatment or medication. Not every insurance plan covers pre-existing conditions, so keep an eye out for this.
- Family size: Employees with larger families may have different health insurance needs than employees without children. You can consider the coverage needs of employees with families when choosing a health insurance plan, and whether or not you want the insurance to also cover their dependents.
- Health and wellness preferences: Some employees may be interested in health and wellness programs, such as gym memberships or wellness coaching. This can be a good perk to offer, and is included in some employee health insurance plans.
- Age: The health insurance needs of younger employees will differ from their older counterparts. The demographics of your workplace may also influence the cost of your insurance plan, so keep this in mind.