What you need to know about employee health benefits


Managing operational duties such as benefits administration is not the reason you started a small business. Instead, you founded a company to share your passion and talent with others.

Keeping your employees happy is crucial to operating a successful business, for better or worse. Providing a competitive benefits package is one way to do that. Health insurance is one of the most sought-after benefits.

Offering employee health benefits is not an easy decision. It can feel as if choosing the right plans, figuring out your contribution amount, and then applying for coverage is a dreaded task even once you’ve decided to opt for it. For more information, visit

A little preparation goes a long way when it comes to any complicated task. The following information will help you understand how a health insurance plan works and how it works.

Health insurance requirements for employees

Depending on your company’s size, you may have to offer employees health insurance under the federal law. Businesses with fewer than 50 full-time equivalent workers are not legally required to provide health benefits. As a small business, you’re required to provide health insurance options that meet legally defined affordability and quality standards if you have 50 or more full-time equivalent employees . A federal tax penalty will be imposed if you don’t.

ACA mandates these requirements, which may change as new health care policies are implemented.

Why offering health insurance as a benefit is a good idea

Even when they are not required to offer health coverage, many small companies do. According to a recent Kaiser Family Foundation report, 54% of companies with less than 50 employees offer health insurance to their employees.

You may want to consider investing in health insurance for your business for the following reasons:

  1. An employee benefit that is most requested every year is health insurance. Fractal, Monster, and Glassdoor all conducted surveys confirming this trend.
  2. Your recruitment efforts can be enhanced by offering a competitive benefits package. In addition, it can motivate employees to stay with you longer, allowing you to avoid wasting time and money on employee turnover.
  3. Pre-tax contributions for employee benefits are allowed.
  4. Employees can remain productive and healthy by receiving preventive health care.
  5. Employees are more likely to receive the treatment and prescriptions they need to recover quickly when they do become ill, which reduces the amount of time employees have to miss from work.

What to look for when selecting a health insurance policy

The competition between health insurance plans would be awesome if it was as easy as selecting your internet provider. However, that’s not how it works. Consideration must be given to a number of factors that will affect your business and your employees when choosing benefits.

While evaluating health insurance plans, the following factors should be considered:

  • Provider network: Are highly-rated medical centers and doctors part of the insurer’s network? What types of medical specialties do its providers cover? Will it cover doctors with whom your employees have already developed relationships? Can your employees find doctors near their home? Employees will be asking themselves these questions.
  • Your contribution to your employee’s coverage is impacted by the insurance plan premiums. The amount an employee will have to pay out-of-pocket for health care also varies depending upon their salary.
  • As a bonus, low-premium plans often result in higher out-of-pocket costs for your employees, such as copays, deductibles, and coinsurance. You should consider the pros and cons of different plans based on the health needs of your staff.


Taking the time to evaluate, enroll in, and administer employee health benefits might sound like a chore, but if you do it right, you can have a significant impact on your employees’ health, productivity, and loyalty. When you do your research and select plans carefully, you have a great opportunity to provide peace of mind for your employees and for you as a business owner.


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