Healthcare benefits can help keep employees happy and productive.
Many employers offer employee benefits, and employer-sponsored health care benefits take top billing in a comprehensive benefits package. As of January 2011, employer-sponsored health insurance helps employees save money on coverage, and employers reap rewards in the form of more productive employees and tax benefits. Employer-sponsored health care benefits come with a hefty price tag, though, and some companies have considered scaling back on these offerings.
Attract Talent
Many employers add sponsored health care insurance to their benefit packages as a way of attracting and retaining the best employees. Employees who receive employer assistance on insurance premiums can take advantage of the health benefit at a considerably lower cost than if they purchased a similar policy on their own. According to the business magazine Entrepreneur, most potential employees consider health benefits among the most important benefits an employer can offer. If an employer does not offer a health care insurance benefit, or if the employer offers sub-standard plans, talented employees may leave for an employer that offers a better benefits package. In contrast, employers with top health benefits can attract talented, innovative and efficient employees who can use their skills to improve the company's bottom line.
Productivity
According to the U.S. Department of Health and Human Service's Agency for Healthcare Research and Quality, those with health insurance pursue treatment and preventative care more often than the uninsured. Insured employees typically experience fewer sick days and reduced health-related distractions on the job. Some employers, according to Entrepreneur, encourage employees to take advantage of health benefits and preventative care year-round through ongoing communication programs, as continuous use of the benefits keeps employees healthy, on the job and free of health-related distractions. Periodic evaluations of employee health can lead to early detection of serious disease like congestive heart failure and diabetes; early detection reduces the risk that the employee will take a medical-related leave of absence or leave the company for health reasons.
According to the Agency for Healthcare Research and Quality, group health insurance plans allow employees to enjoy benefits and services they would otherwise be unable to obtain under an individual policy as of January, 2011.
Public Policy
Though employers have a number of self-interest reasons to offer health coverage, some employers offer healthcare benefits as a result of public policy. According to the Kaiser Family Foundation, many state and local municipalities require employers to offer at least basic healthcare benefits as of January, 2011. In many cases, according to the Agency for Healthcare Research and Quality, group health insurance allows employees to enjoy benefits and services they would otherwise be unable to obtain under an individual policy.
Taxation
The U.S. Internal Revenue Service offers several tax benefits for businesses that sponsor healthcare benefits for employees, according to the official IRS website. As a result of the Affordable Care Act passed in 2010, small businesses that cover at least half the cost of employee health premiums receive a tax credit as of January, 2011. According to the Tax Policy Center, an employer's financial contributions to employee health insurance are exempt from federal taxes. Employee contributions to health insurance premiums may reduce taxable income, depending on how the employer handles payroll deduction.
Tags: health insurance, January 2011, Agency Healthcare, Agency Healthcare Research, employee health
