Small business health insurance is a product that has become more affordable and accessible for small businesses over the past decade. The Affordable Care Act (ACA) has significantly impacted small business health insurance available in recent years.

Small businesses tend to have fewer employees than giant corporations, so they are not an attractive market for insurers selling employee benefits.  This means it’s more challenging for small businesses to find affordable coverage tailored to their needs.

Small business owners tend to be risk-averse because they may have little personal savings and other financial obligations such as mortgages or student loans. Here is why you should offer small business health insurance to your employees:

Access to Lower Monthly Premiums

One of the biggest reasons many small businesses offer health insurance is because they want their employees to have access to high-quality care. By providing a small business health insurance plan, you allow employees to seek out high-quality care whenever they need it without worrying about paying out of pocket or having their bills denied due to preexisting conditions or other factors.

Benefit From Tax Incentives

In addition to lower monthly premiums and increased access to quality care, small business owners also benefit from tax incentives when offering health insurance. There are two main types of tax incentives: those that apply only if an employer provides health insurance and those that apply regardless of whether an employer offers coverage.

Improve Your Hiring And Recruitment Strategy

When you offer health insurance to employees, you’re telling them that they’re valued and appreciated by the company, which can help with recruitment efforts in the long run. In fact, according to a recent survey from the Society for Human Resource Management (SHRM), more than half of employers say they use health insurance as an incentive to recruit new employees. Additionally, SHRM found that more than two-thirds of employers use health benefits as one way to attract top talent.

Encourage Employee Loyalty And Retention

Offering health insurance shows employees that you care about their well-being and helps keep them around for the long term. Health insurance also provides financial protection against medical emergencies and long-term illnesses or injuries for employees and their families.  For example, if an employee gets sick or injured and takes time away from work or goes see a doctor several times a year, those costs can add up quickly — especially if they don’t have coverage through their job!

Boost employee job satisfaction

Employee satisfaction affects productivity, which affects your bottom line. When employees are happy, they’re more likely to stay with your company and less likely to leave for greener pastures or find another job altogether. When you offer health insurance as part of your benefits package, you care about your employees’ well-being. This can create strong working relationships between employees and managers, leading to more excellent teamwork and more productive employees.

Healthier, more productive employees

Healthier employees are more productive than those who aren’t well enough to come to work regularly. When they have access to affordable health care coverage, they don’t have to worry about paying out-of-pocket expenses for routine doctor visits or prescription medications — or worse yet — going without necessary treatment because they can’t afford it.

Foster a healthy company culture.

When you offer health insurance, you show that you care about your employees’ well-being. It’s an act of generosity and investment in your company’s future. Employees who trust that their employer has their best interests at heart are more likely to feel loyal and work hard on behalf of the company.

Pre-tax benefit for employees.

By offering pre-tax flexible spending accounts (FSAs), medical reimbursement accounts (MRAs), or health savings accounts (HSAs), small businesses can give employees tax advantages when paying for eligible expenses related to their healthcare coverage, including premiums and out-of-pocket costs like co-pays and deductibles. These benefits are precious for self-employed workers who need to pay both the employer and employee sides of taxes on their income.

Help put health coverage within reach of employees.

The number one reason small business owners offer health insurance is that they want to help put coverage within reach for their employees. Small businesses typically have fewer resources than larger companies do for providing benefits like health care coverage, so offering this type of tax-advantaged benefit helps level the playing field between small companies and larger ones when attracting and retaining talented workers.