Regardless of what size or type an organisation is, its employees are its lifeline. It is the responsibility of the employer to provide employees with the required financial support and care. A common way for a small business to provide the necessary care to its employees is by offering them a group insurance policy.
While it is not compulsory for small businesses to provide group health coverage, this article discusses why they should offer this insurance to their employees.
Understanding Group Health Insurance
A group medical insurance policy is a health plan type that small businesses can purchase for their employees to offer coverage for their healthcare-related expenses. Generally, this health plan is provided to all the workers in an organisation and may extend to the employee’s dependents.
The small business owner purchases this health insurance policy for its members/employees from the insurer, paying a portion of the total premium. Sometimes, the employee also contributes towards the premium cost.
Why Should Small Businesses Offer Health Insurance ?
If you are a small business owner, you should offer a health insurance policy to your employees as it will benefit you in the long run. Here are some reasons to consider providing your employees with a health plan.
Lower Financial Strain
With the help of a small business insurance policy, employees can remain financially secure during their unexpected medical emergencies. They do not have to make arrangements at the last minute for a huge amount to pay for their medical bills.
Additionally, if you opt for a comprehensive health plan, you too can get financial coverage for medical emergencies. This way, employers and employees are protected from unexpected losses caused by illness, death and accidents.
Motivating Employees
There has been rapid growth in small businesses in the past few years. This has resulted in fierce competition, making it difficult for employers to retain good workers. In such a situation, group health insurance can help you retain employees and instill in them a sense of loyalty. Simply put, it shows your employees that you are concerned about their well-being and want to protect them from unanticipated scenarios.
Draw in New Employees
A small business can succeed only because of hard-working and talented employees. Apart from retaining your existing employees, a small business insurance program can also help you attract new ones. Providing benefits such as a health plan plays a pivotal role in motivating new talents to become part of an organisation.
Improve Reputation
Despite making different business efforts, it is difficult for small businesses to build a reputation for themselves. However, insurance offered by small businesses can help them showcase their financial status.
By offering a health policy and associated benefits, you can set your organisation apart from your competitors, and gain reputation and trust as a brand.
Tax Savings
By opting for a small business insurance scheme, you can also lower the amount of tax that you have to pay as a small business. Health policies can contribute towards tax savings for your company. According to government policies, providing health insurance schemes to workers in your organisation can help you save significantly on your taxes.
Guide to Selecting the Right Health Insurance Plan for Small Businesses
● Identify Your Requirements
The first step is to identify what your insurance requirements are. For this, you have to collect information about how many employees you have in your company, what their personal and medical details are, etc.
With all this information you can have a clear idea about which health plan to select for your employees.
● Compare Different Health Plans
To find out which insurance company works best for you, you have to compare the benefits and features of policies offered by different insurance providers. With proper research and comparison, you will be able to select the right health policy for your employees. Remember to opt for a reliable and well-reputed insurance company.
● Find out about Network Hospitals
You must ensure that the insurance company you select features cashless treatment. Make sure that you opt for an insurance provider that has multiple hospitals within its network.
● Understand the Policy
Read the policy document carefully, paying attention to deductibles, premiums, exclusions and inclusions. Do not finalise any policy without knowing its coverage and claim process in detail.
Conclusion
In today’s world, it is not just a smart decision as a small business owner to provide health insurance to your employees, but also a necessity. The benefits of providing a health policy extend beyond healthcare coverage; it contributes towards the overall success of your business.
