As an employer, to attract qualified individuals, there is always the need to offer a compensation package, health insurance being the crown jewel. Contrary to what many people think, health insurance is not mandatory and so it always boils down to the employer.

This is why you often can find a firm offering health insurance while at the same time, health insurance and other benefits are non-existent with competing firms. To an employer, offering health insurance as an employee benefit usually has its pros and cons.

Why Offering Health Insurance as an Employee Benefit is a Good Idea

Health insurance is necessary to attract and retain qualified personnel. However, this may depend on a couple of factors including whether or not your competitors are offering the same. In case they do, you have to up your game a notch and offer other attractive benefits. Also, health insurance ensures that employees are always in that tip-top form for optimum productivity.

In addition, small business, with not more than 25 employees, can be eligible for tax credit by simply offering health insurance to employees. When your staff is well looked after medically, they are more likely to be present at work and it also reduces their stress regarding medical expenses.

Why Providing Health Insurance is Not a Good Idea

In the world we live in today, health care costs keep rising which makes financial planning nearly impossible. The high heath care costs can be financially draining and can pose a huge risk to the continued existence of your firm. There is also that chance of selecting a rogue health care provider which can hurt your firm financially. Usually, rogue health care providers may inflate health costs which can be expensive on the employer’s part while the services provided could be below par.

Last Word

As an employer, offering employee health insurance has its benefits as well as a downside. However, luckily, offering health insurance is optional and there is no government agency that can force you in to offering this perk. However, to an employee, health insurance is the ultimate benefit that an employer can offer so make sure to check all benefits before joining a company.


Robert Gombos

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