Group health coverage can be a critical component in a company's benefits package. The most obvious benefit is that it helps keep employees happy and healthy. But there are other, less obvious advantages to group health coverage too, which we will explore below.
Provides Competitive Wages
This is a problem for businesses with small profit margins that cannot afford to offer benefits like health insurance, as they need every dollar of employee wages. However, if the company offers group coverage, it can offer competitive wages and still be able to attract employees who are looking for higher-paying jobs.
Prevents Higher Turnover Rates
One of the biggest benefits of group coverage is that it helps keep employees happy and healthy. Confusion about eligibility and affordability, or confusion with personal deductibles can make a person worry about whether they have been overcharged for their insurance premiums. This leads to higher turnover rates as people suddenly quit out of frustration, placing an unnecessary burden on their teammates.
Replenishes the Workforce
Another advantage to offering health care coverage is replenishment—that is, having access to new talent when you need them. If someone leaves your company or retires from employment, there are opportunities in other industries where those people may not be eligible for medical benefits but could still qualify if they worked at your company.
Provides Stability and Peace of Mind
The most obvious benefit of group health coverage is peace of mind. Knowing that you and your family are being taken care of from a financial standpoint can allow employees to focus on their work more than they would otherwise be able to do without the sense of security in place. This also allows them to know what costs could arise for them so that they don't get blindsided with an unexpected or frightening medical bill when it's too late.
Saves Money with a Group Discount
Group health coverage provides employees one fewer expense they have to worry about. This can allow them to make other financial decisions that may be necessary in order for them and their family members to get by without having a fear of paying too much money or not being able to afford medical expenses should something happen out of the blue.
Keeps Employees Healthy and Productive
Group healthcare also helps keep employees healthy by providing preventative services, wellness programs, employee assistance programs (EAP) access, emotional support during difficult times, treatments for addictions such as alcohol abuse and drug addiction, and behavioral therapy including treatment for depression and anxiety disorders.
In conclusion, group health coverage is a valuable resource for businesses and their employees. With the cost of healthcare continuing to rise, it's important that every employee has access to affordable care. A company can offer group health insurance as an incentive while also benefiting from reduced turnover rates and recruitment costs.