Attention Business Owners! Why Should You Purchase Company Health Insurance for Your Employees?

Out of the various employees at your company today, how many would you say were hired because they excelled in what they did and stood out to you? Many companies nowadays have a specific target as to what they’re looking for when hiring. However, applicants also have their own set of standards when looking for jobs.

One thing they look for are the benefits a company offers. Whether or not a company provides health insurance is a big factor in deciding whether or not the applicant would want to work at the company. Not only will having health insurance help retain employees, but it can also help save on your company’s taxes. What are the other advantages of purchasing company group health insurance? Read more to find out how it can benefit your company!

1. Group health insurance helps your company save money

The expense that is spent on your company’s group health insurance premium can be written off as your company’s expense when filing taxes. Furthermore, companies with less than 25 employees have the opportunity to receive up to 50% tax credit through Covered California’s SHOP.

2. The more and better medical benefits, the better talent you will attract

Compared to a personal health insurance plan, the company group health insurance plan can provide better and more benefits. The amount you would have to spend out of pocket on an overnight hospital stay would also be reduced. You can also purchase an inexpensive 3-in-1 plan that includes dental, vision, and life insurance. There are also many hidden benefits of company group health insurance, including massages, acupuncture, gym discounts, discounts on leisure activities, and more! Click here to learn more about the hidden benefits.

Unlike individual health insurance, which can only be purchased within the short 1-3 month open enrollment period (or within 60 days of a qualifying life event), employees and their family members insured under the company group health plan can enroll at the beginning of each month. They will no longer need to worry about purchasing health insurance within such a short period of time.

3. The employer(s) can save on their own health insurance costs too!

With an income as high as a business owner’s, many probably don’t qualify for any subsidies if they get their own individual health insurance plan. It’s possible that premiums will increase to around $1,000 per month (Click here (opens in new tab) to check if you qualify for subsidies). If the employer gets his or her health insurance from the group plan, not only is there a chance that the price will be lower, but the benefits will also be better. Having company health insurance becomes a win-win situation for the benefits of your company and your employees.

4. Less restrictions on purchasing company health insurance plans

In the past, there were stricter restrictions on purchasing company health insurance plans, which made it impossible for many small and medium sized businesses to buy group health plans. However, starting last year, the restrictions became more lenient, and now, companies with only 1-2 employees are allowed to apply for company health insurance. As long as the company has 1 employer and 1 full-time employee, the company qualifies to apply for group health (Husband and wife do not count, and full-time employees have to work more than 30 hours per week). The applicants’ percentage needs to reach 60% of all full-time employees (excluding Medi-Cal and Medicare). In addition, the applicant needs to have worked for more than 6 weeks. If employees have their own individual health insurance plan, they can sign a waiver and it would not affect the company’s enrollment rate.

There are many advantages to having company group health insurance. Not only is it flexible, but it also has many insurance benefits, and most importantly, the premium could be considered as the company’s expense, which means it can help you save on taxes.

If you’re a small business owner and you’re interested in getting health insurance for your company, or you’re a business owner looking to see which plan can help your company save money, feel free to contact KCAL Insurance Agency! KCAL health insurance experts can help you calculate costs and figure out whether group health insurance or individual health insurance is better and more cost effective for you! Click here to learn more about the plans we offer.