Being able to offer your employees health insurance is a big deal. Here are 5 ways you can get the most out of your group health plan.
Being able to offer your employees health insurance is a big deal and comes with a lot of benefits – for you and your staff. Here are 5 ways you can get the most out of your group health plan.
1. Use it as a recruiting tactic
When recruiting new talent, play up the fact that you offer health insurance. This will help you stand out among other small business who might not provide it. According to the Bureau of Labor Statistics, only 55 percent of private industry employees in small businesses with less than 100 employees were offered medical care employee benefits.
2. Use it as a retention tool
An existing employee might take employee-sponsored health insurance for granted. Once a year, it’s a good idea to put together a compensation package for your employees to remind them of the added benefits you offer. Putting a dollar amount to some of the intangible benefits (health insurance, paid holiday leave, 401k matching, etc.) can help with retention.
3. Capitalize on the tax benefits
Another advantage of providing small business health insurance are the tax benefits to the employer that come with a group plan.
There are several ways that a group health plan can result in tax advantages for your business:
- Generally, employers can deduct 100 percent of the cost of monthly premiums they pay on qualifying group health plans from their federal business taxes.
- Offering health insurance coverage to workers as part of their compensation package could also potentially mean that a business may benefit from reduced payroll taxes.
- Employers can usually deduct HSA contributions from their small business taxes.
- While group plans already tend to be more affordable than individual plans, the tax advantages from offering small business health insurance can further help your company in providing this highly valued and sought-after employee benefit.
4. Boost coverage by adding dental and vision plans to the package
By offering dental and vision coverage, you can add choices to the benefits table without a corresponding increase in your expense. How? Employees often pay the full cost of voluntary benefits but enjoy the advantage of group rates for the benefits when offered through their workplace.
5. Remind employees to use their benefits
Want a healthier workplace? Remind your employees to use the covered services under their group health plan. Most plans include annual physicals, screenings for women’s health, and flu shots (just to name a few). Encourage your staff to take advantage of these benefits by sending friendly reminders periodically throughout the year.