Here’s Why Your Small Business Should Offer Employee Health Benefits

Here's Why Small Business Owners Should Offer Health Insurance To Employees

Almost two-thirds of insured Americans receive health insurance through their employers. But plenty of Americans — specifically, Americans who work for small businesses — don’t receive health insurance through work. If you’re a small business owner with fewer than 50 full-time employees, you aren’t legally obligated to provide group coverage.

Still, could employee benefits give your firm a competitive advantage?

One of the many objectives of the Affordable Care Act (ACA) was to improve the way small businesses get access to affordable, quality group coverage. While large businesses might feel the effects of tighter regulations and added costs to meet ACA standards, small business firms (and their employees) actually benefit from the changes. Here’s why your firm should consider offering health insurance to your employees.

1. It’s The Law

If your firm has fewer than 50 full-time equivalent employees, you get to decide whether or not to offer medical coverage. However, if your firm has 50 or more employees, the ACA’s “employer mandate” requires that you provide compliant coverage to your employees. If not, you could pay a penalty to the IRS.

2. All Employees Need Health Insurance

The ACA requires every American to have compliant coverage. If you don’t provide health insurance to your employees, they’ll have to find it on their own. Premium costs for individual plans are paid by your employees (and not offset by your contribution), so your employees might be forced to buy a plan that they can’t afford or that doesn’t meet their needs. They might even opt out of buying any type of health insurance!

In case your employee has a medical emergency, insufficient coverage could threaten their financial stability and ability to work. So, here’s the bottom line: If you decide not to provide quality, affordable health insurance to employees, you put your employees and your business at risk.

3. Benefits Retain Employees

Sure, health insurance makes up a substantial portion of employee compensation. But it’s also a major incentive for keeping the most productive employees in your workforce. Providing quality health benefits could be the difference between a desirable candidate accepting the job or taking another offer. It can also dissuade a current employee from switching to a competing firm that provides better benefits.

Plus, it’s estimated that due to lost production, sales, and training, employee turnover costs 150% of their annual salary! Employee benefits are a crucial way to retain employees and reduce overall costs.

4. Group Plans Offer Tax Breaks

The ACA offers cost assistance to small businesses that meet certain requirements. If your business has fewer than 25 full-time equivalent employees, you could qualify for a tax credit that covers up to 50% of your contribution to your employees’ premium costs.

5. You Can Get Discounts And Rewards

When you buy group coverage, you can offer wellness discounts and rewards for gym memberships, tobacco cessation programs, weight loss counseling, and more. If your employees meet certain health goals, you and your employees could even qualify to save up to 30% on premium costs! By setting up health-minded goals— plus a financial incentive to complete those goals — you and your employees will see a long-term payoff.

6. There’s A Health Insurance Marketplace Built Just For You

It’s called the SHOP Marketplace, and it exists so that small business firms can find affordable, ACA-compliant medical coverage. To figure out your coverage options, talk to a licensed agent at Regency West Insurance Services. A licensed professional will work with you one-on-one to compare benefits, premiums, and quality of group health plans.

7. You Have Help

Ready to buy a group coverage? You still need help sorting through its complexities. Luckily, free help from an expert is a click or phone call away! Just visit or call (858) 699-0286.

At Regency West, we find you a group plan that matches your budget and your employee’s needs. Then, once you pick a benefits package, we help you communicate those benefits to your employees. From the moment you get in touch with us, we want you to feel comfortable knowing there’s immediate, professional assistance for all your health insurance questions!

Find A Group Health Plan In Minutes

Your employees are the heart and soul of your small business. Don’t you want to provide the benefits that keep them happy, healthy, and productive?

At Regency West, we care about the health and well-being of you and your employees. We will help you match a customized benefits package to your budget. And we’re here any time you need us. Get in touch with us today!