The ever-changing landscape of health insurance has conflicted business owners who are trying to determine whether or not they should provide health insurance for their employees.
While dropping employee benefits may seem like a great way of cutting costs, there are key benefits that companies would risk losing in the long run.
Here are three true benefits of keeping employees insured:
1. Attract and Retain Talent
Businesses that drop health insurance are not only in danger of losing their competitive edge when attracting quality employees, but also suffer financially when employees decide to look for opportunities else where. The financial distress a company endures during employee turnover, downtime and re-training of new employees can greatly out weigh the cost of health insurance.
2. Boost Productivity
A healthy workplace boosts productivity. Employees who have health insurance are more likely to schedule routine doctor visits which results in less sick days. In addition to physical health, having health insurance also alleviates the financial stress of medical bills. A physically and mentally healthier office directly increases morale and productivity.
3. Tax Deductions
While the upfront cost of providing employees with health insurance may seem high, there is a direct return when it comes to tax write-offs. A company can greatly benefit from deducting insurance premiums of their employees. Those dollars spent, can help save a company thousands of dollars that they would otherwise have to pay to the government.
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John Cerasani is the President of Northwest Comprehensive, Inc, a Chicago-based Health and Welfare Insurance Brokerage firm and works with small to mid-sized employers nationwide.