Many employers don’t understand the importance of employee health insurance. It’s an essential part of the remuneration package, and businesses not providing it, regardless of their size, might lose their competitive position. It’s recommended that you get in touch with an insurance agent in CA and acquire an employer-group insurance package.
Here’s all you need to know:
Requirements for Employee Health Benefits
In various US states, employers are legally required to provide employee health insurance to their workers. A business employing 50 or more full-time equivalent employees is legally required to provide employee health insurance to its workers. But this doesn’t mean companies with fewer employees are not allowed to provide insurance.
On the contrary, there are numerous reasons why it’s becoming common practice for small businesses to offer employee health insurance as remuneration. If you’re running a business for which employee health insurance is required but don’t provide it, you’ll owe an annual federal tax penalty.
How to Choose Employee Health Insurance Plans
The bad news is that employee health insurance plans aren’t universal, so you’ll have to do your due diligence to find the most appropriate option. While it can be a bit tricky to pick an employee health insurance plan, you can find an easier option if you know what to filter for.
After considering several factors related to your business and your employees, you will be able to make an informed decision.
Do you have access to noteworthy or reliable doctors and medical centers available in the insurance? Does it provide access to medical professionals near you? Are there any doctors listed that your employees already consult? Asking these questions will help you out.
The employer has to pay for the insurance plan premiums, while the employees will mainly focus on copay, deductibles, and out-of-pocket expenses. A lower premium might be easier on your pocket but can lead to higher employee costs. You’ll have to discuss this aspect with a reliable health insurance agent to make the right decision.
Poor customer service can often mean that the insurer won’t cooperate with you or not provide proper transparency, and will fail to respond on time.
The advantage of some insurance plans over others is that they provide just a bit more. Wellness benefits are a big consideration, and they include reimbursements for the gym, free classes, rewards, and options like telemedicine.
Choosing Your Benefits Contribution Amount
Kaiser Family Foundation’s 2018 Employer Health Benefits Survey suggests that employers covered an average of 83% of individual premium costs and 72% of family premium costs. As the employer, you get to determine how much you want to contribute. Pay attention to the number of employees you cover, which means contributions go up as the number of covered employees increases. Do note that some states have a minimum employer contribution to take care of.
With a higher salary for employees, it can make up for the premium costs. You can get away with lower contributions if you provide numerous benefits.
Here’s Why You Need to Offer Health Insurance
It’s becoming more common for up-and-coming businesses to provide health insurance to their employees. It’s one of the most sought-after factors for various people, especially considering how inaccessible healthcare can be without it. According to a study from the Kaiser Family Foundation conducted in 2018, 54% of respondents stated that despite having less than 50 employees, i.e., not legally required to offer health insurance; they were providing some form of it to their employees.
Here’s why you should be providing healthcare coverage to your employees:
- Some of the most popular job listing platforms suggest that health insurance is the most requested employee benefits every year.
- Not only does it make job listings more competitive, but it’s likely to reduce staff turnover by motivating workers to stay, boosting retention.
- Any contribution that you make for employee benefits is pre-tax.
- Health insurance has a positive effect on employee health, which leads to increased productivity.
- With the right treatment and medicine more accessible, employees are more likely to have a lower downtime for recovery.
For companies looking for employer group insurance, the process can be streamlined by collaborating with Covered California Certified Agent. We’ve assisted many companies, and individuals find reliable insurance services in California. We also offer individual health insurance and dental insurance. We’re aware of how it can be difficult to navigate the insurance landscape and offer dedicated resources for the job.
Contact Covered California Certified Agent today to work with a reliable insurance agent in California.