Should Companies Invest in Group Health Insurance For Their Employees?
The decision on whether companies should invest in group health insurance for their employees has been a debate for quite some time. Regardless of whether they are large or small, companies depend on their employees for productivity and revenue. They cannot afford to have their employees report sick or become injured while working because this can result in loss of many hours and revenue.
Companies have an option to invest in group health insurance for their employees. On the other hand, insurers offer various packages according to individual requirements. Small companies do not have any legal obligations to provide group health insurance for their employees, but the law does not prohibit them from doing so in the interest of their business. Those that are concerned about losing staff-hours and revenue overlook the costs of group health insurance because the benefits they can accrue from the insurance are far higher.
[su_quote class=”cust-pagination”]“You can get up to a million dollars or more in life insurance in case you die. But can only get about seven or eight bucks an hour to live.” —Stanley Victor Paskavich [/su_quote]
How Can Companies Benefit By Offering Group Health Insurance?
Many companies are reluctant to offer group health insurance for their employees because they believe it would affect their bottom line. What they fail to realize is that they reduce the morale of their employees by doing so. Such companies do not consider their long-term prosperity and only concentrate on the short term.
Health insurance coverage is an important aspect of employment. On their part, employees firmly believe that it is indeed an entitlement. Potential employees will prefer working in a company that offers group health insurance to one that is not. By offering this type of insurance, companies also benefit by attracting the right candidates for new positions.
Some employees demand disability insurance and a retirement plan. Therefore, the management has to take a collective decision on the type of coverage they are willing to offer.
Benefits to the company
Companies stand to benefit in a major way when they offer group health insurance coverage for their employees. The employees develop a sense of job satisfaction and will generally be reluctant to miss working hours or quit their positions. They may even become motivated to meet the objectives and goals of the company. Research has proven that employees develop the feeling that their needs are being met and press satisfaction by being more productive. This is a benefit that companies cannot afford to ignore. Therefore, the management of the company and the owners must consider group health insurance as a good financial commitment and offer coverage to every eligible member of their staff.
[su_quote class=”cust-pagination”]“Life insurance became popular only when insurance companies stopped emphasizing it as a good investment and sold it instead as a symbolic commitment by fathers to the future well-being of their families.” — James Michael Surowiecki [/su_quote]
How Are The Cost of Group Health Insurance Calculated?
Companies need to apply for a group health insurance coverage and wait for a response from the insurer. The insurance company will use different criteria when providing a quote for the insurance after considering factors such as the size of the business, the location, the average age of the employees, and the needs of the company. After that, they will give a quote for the monthly premium.
Companies that are considering group health insurance for the first time may not fully understand the importance of doing so, but we have already seen how the company will benefit from the action. After considering these advantages, the management should conduct some research about the same. They can rest assured they will soon have a representative from the insurance company visiting them along to inform them about group health insurance and why they should not ignore such an investment.
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