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.
More in Health Insurance
How The Type of Insurance Plan Affects Brain Tumor Treatment
Most people think that having a good health insurance plan will keep them covered for all medical conditions. Sadly enough, they...August 1, 2018
This Is What Happens When You Try To Lose Weight Too Fast
Many people have their own version of their body goals, and working towards that can tackle several issues in our lives,...July 30, 2018
Forgive Your Addictive And Abusive Parent: Here’s How You Can Do It
An addicted person doesn’t only impart harm on themselves but also to the people around them. Friends and family go through...July 27, 2018
Why and How Men Should Take Care Of Their Skin As They Age
Whenever we talk about beauty and skincare, we generally refer to females. Men, however, rarely talk about their skin problems to...July 25, 2018
Five Tips To Help You Save Up On Your Next Visit To The Dentist
Many people tend to neglect their dental health, thinking that it is unimportant unlike the rest of the body. This is...July 23, 2018
Seven Ways To Keep Yourself Happy And Achieve Mental Peace
When nothing seems to be going right for you, how do you cope? Usually, there are various ways we do to...July 20, 2018
How To Make Mundane Food Interesting And Lose Weight Along The Way
There are numerous weight loss articles available on the internet, and anything related to this topic almost immediately catches our attention,...July 19, 2018
Is There Really A Connection Between Alcoholism And Diabetes?
One legal substance which has steadily contributed to the addiction epidemic across the nation is alcohol. As a matter of fact,...July 16, 2018
Medicare Enrollment: What You Must Keep In Mind Before Zeroing In On A Plan
Whether you are new or old to Medicare, certain changes keep occurring over time. If you are someone above the age...July 13, 2018