Businesses struggling in the current economic climate are seeking new ways to improve the bottom line, and group medical insurance is proving to be a beneficial tool for creating better business. From tax incentives to employee retention, offering group health insurance to employees can provide a win-win situation for both employer and employee.
Also known as an employer-sponsored health plan, group medical insurance is on the chopping block for many businesses that are trying to cut costs and keep their companies afloat. Because most Americans receives family health insurance coverage through an employer-sponsored group plan, the elimination of these health plans could result in major financial struggles for working Americans.
However, business owners who chose to keep a group medical insurance plan as part of their employee benefits package are discovering that it improves not only employee moral but also the bottom line. They are more likely to attract the best workers and are able to decrease employee turnover rates. As for improving business finances, group medical insurance plans pave the way for tax incentives.
Business owners who contribute to employee premiums or share costs with employees, can typically deduct 100% of premiums paid. In addition, it is possible to reduce payroll taxes when the medical insurance coverage is part of a total compensation package.
Having quality employees is vital to a good business, and providing group medical insurance is vital to obtaining and maintaining quality employees. Even if the business budget is tight, it is still possible to find an affordable medical insurance package that keeps employees happy, protected and performing well to benefit your business.
As an employer, you select a group health insurance plan and invite your employees to enroll. Typically, employers cover at least 50% of each employee's monthly premium, and can also contribute to dependent premiums. The remainder is paid for by the employee. If you want to provide health insurance benefits and you're able to contribute toward employee premiums, group health insurance is the way to go.
Compare all of the plans that are available to you before making your decision on which plan to go with. All of the top insurance companies in your area should offer you a good selection of plans. To compare plans from different insurance companies visit a website that can offer side-by-side comparisons and plan price quotes. Be sure to check that sites rating with a service such as the Better Business Bureau.