Just as individuals are required to obtain heath insurance or face tax penalties, businesses with over 50 employees are required to offer health insurance or pay a fine. In many cases, the fine costs more than offering the health insurance. If your business has less than 50 employees then you are exempt and will not face fines if you decide not to offer health insurance. Choosing which plans to buy can be a confusing process, especially for small to moderate sized business owners who face financial constraints. Below is a guide to help employers understand the health insurances options available and how to keep employees healthy and happy while maintaining costs.

Why Purchase Health Insurance

Before explaining how to purchase health insurance, there is an important question that needs answering: why? Some business owners may wonder why they should provide health insurance to employees, questioning whether it would be cheaper or more efficient to allow people to purchase their own individual plans. This perception is actually inaccurate. Purchasing health insurance makes fiscal sense, as it protects your health, business, and finances.

Providing health insurance for your employees makes financial sense for two reasons; often times the business is able to negotiate a lower rate with the health insurance as opposed to the individual and two, offering health insurance can often increase employees desire to work at your business and may result in better candidates applying for the job.

Insurance companies will often agree to a discounted rate or will allow you to negotiate a price that suits both of your needs due to the fact you are buying several plans at once. Even if the health plan you choose requires your employees to pay a copay, it will still shield them from unnecessary expenses that arise when they go to the hospital or to the doctor’s office. Purchasing health insurance for your employees also protects their well-being, keeping them healthy, happy, and able to attend work and help make your business successful.

Provision of healthcare is an attractive thing for a business to offer and it entices employees to apply and interview for positions. A company that provides an excellent healthcare plan is able to attract and retain employees, leading to financial gain and high employee satisfaction.