No Small Business in Offering Employees Health Insurance

In today’s healthcare landscape, the question on many small business owners’ mind is whether or not to provide employee health insurance.

If you are on the fence about providing your workers with healthcare coverage, there are a number of pros and cons to consider.

When it comes to employee healthcare, here are some helpful pros and cons for your small business to keep in mind:

Employee Health Insurance Stats

The great healthcare debate seems to boil down to one question for small business owners: should employers offer health insurance coverage to their workers?

Well, according to the National Small Business Association, roughly 86% of U.S. businesses with 10 to 20 employees offer insurance coverage. Additionally, 91% of U.S. businesses with 21 to 49 employees offer their workers coverage.

Although you shouldn’t base your decision on what other businesses are doing, it’s important to put yourself in your employees’ shoes.

Think of you and your family’s health concerns.

Do you have any medical conditions? Do you need vision and dental coverage? As the following article looks at, what are the costs associated with caring for your child’s teeth?

These questions, along with the pros and cons below, will help you make the right decision for your small business.

Pros of Offering Healthcare Insurance

Sure, offering your staff healthcare coverage is a great way to attract new talent and retain the employees you already have, but there are numerous other benefits to offering your employees health insurance.

Among them:

  • Tax Deductions – When you offer your employees healthcare coverage, it can result in significant tax deductions for your small business. In fact, depending on the coverage you offer, you can deduct up to 100% or your employees’ premiums.
  • Healthcare Tax Credits – If your small business has 25 or fewer employees, you could receive tax credits for offering your workers coverage. These credits can work in combination with other tax deductions, which can result in major savings for your business.
  • Workplace Wellness – By offering your employees health insurance, you are promoting wellness in your workplace. This results in fewer sick days and an increase in productivity.

Cons of Providing Coverage

On the flipside of the healthcare coin are the disadvantages of offering your employees health insurance.

Just as you do with the pros, you should also weigh the cons in your decision-making process.

Among them:

  • Costs are increasing – Healthcare costs are on the rise for both individuals and employers. The rising costs not only put a financial strain on small businesses, they also make it difficult to budget for future company-wide healthcare expenses.
  • Cost-Sharing headaches – Many small business owners opt for cost-sharing health insurance plans. Although this lowers the overall costs, it also creates tension between employers and workers when deciding who covers additional fees and rate increases.
  • Administrative inconveniences – Finding a business health insurance plan is one thing, but actually signing up for the plan and obtaining all of your employees’ information is something else entirely. Between adjusting premiums and handling co-pay paperwork, the administrative efforts involved with juggling employee health insurance can become a nightmare.

If you’re considering offering health insurance coverage to your employees keep in mind the pros and cons above in order to make a healthy decision.

About the Author: Adam Groff is a freelance writer and creator of content. He writes on a variety of topics including healthcare and small business.