Small employers that do not shy away from offering healthcare coverage, due to a perceived cost and administration headache, reap many benefits. Though offering health insurance is not a requirement until your company reaches 50+ full-time employees, nor is offering other benefits like dental and vision a requirement, those small employers who do offer benefits to their employees give themselves a huge advantage in the marketplace.


Reason #1. Employers often offer health insurance as an initial company benefit because, according to a recent survey, employees said healthcare coverage is, by far, the most important benefit they receive from their employer.


Group healthcare plans, defined as an employee welfare benefit plan established or maintained by an employer or by an employee organization, are often larger than individual networks. That means on an individual plan, your employee might not have access to the same doctors and hospitals that they would on a group plan. Doctors and hospitals that don’t accept individual plans are often more sought out by patients, increasing access to more, and often better, doctors and hospitals.


By using the collective purchasing power of the JA membership, employers can reduce healthcare premiums, while maintaining flexibility in plan design and provider. This association benefit enables members to take control of their true healthcare costs.


Why do businesses cover or contribute to employees through group plans, even if not legally required? Perhaps it’s good for them too. Here are some possible reasons to offer health insurance.


  • Not considered wages: According to the IRS, if an employer pays the cost of an accident or healthcare insurance plan for his/her employee, including an employee’s spouse and dependents, the employer’s payments are not considered wages and are not subject to Social Security, Medicare, and FUTA taxes, or federal income tax withholding.
  • Recruiting tool: It’s pretty clear that if a potential employee is deciding between two jobs, a sought-after employee often has the advantage of negotiating job perks and benefits. Benefits like superior healthcare coverage can tip the balance in the potential employer favor.
  • Absenteeism: Because a healthy employee is often more productive, and less prone to injury, he or she is also less likely to miss workdays.
  • Employee satisfaction: Research show employees feel more favorable about their jobs and employers when health benefits are provided.
  • Retention: Employers understand employees are more likely to stay with a company that offers valuable insurance benefits, and that the employee would be far more costly to replace.
  • Attention to work: As an employer, you want your employees to focus on being their best productive and successful selves at work. Worrying about health insurance issues could drain energy and time.
  • Comfort level: Having a sizable portion of medical costs paid through an employer’s benefit package can be quite a comfort. It’s no exaggeration to say that an individual without health insurance can be literally just one major injury or illness away from financial ruin.
  • Another reason: Many employers choose to offer healthcare benefits so that they themselves can take advantage of less expensive health insurance than they could get on their
  • Benefit: As a member of a group, your purchasing power is combined with other individuals to obtain better plan options, at better prices than are typically available. The simplified enrollment process completes the search for appropriate coverage by comparing plans from the nation’s leading carriers and making sense of a plan before you enroll.