In today’s world, healthcare benefits are no longer considered an added perk, but rather, most employees expect their company to provide health insurance as part of their overall compensation package. At the same time, as healthcare costs continue to rise, companies find it increasingly more difficult to offer employees rich healthcare plans, especially for small to mid market companies.
However, investing in your employees’ health and well-being can pay off. While measuring a hard ROI of any employee benefit can have its limitations, it is important to consider the “softer” or more nuanced cases for offering strong healthcare benefits.
Attract & Retain Talent
In today’s highly competitive labor market, attracting and retaining your current talent is key to the long term success of your business. It’s no secret that your company is only as good as your people. Retaining your current talent is key to the long term success of your business (not to mention the cost of employee turnover can add up to millions).
Rich healthcare benefits are one of the best ways to attract and retain top talent. As mentioned earlier, employees expect healthcare coverage as part of their total benefit package, and 60% of employees said health coverage is extremely important in whether to stay in their job. And improving your current health benefits plan for the following year could have a big impact: 42% of employees said employers making improvements to their benefits would be something positive they could do to keep them in their jobs.
A Healthy Workforce
When you provide rich healthcare plans, your employees will be healthier. Why? According to the American Heart Association, people with health insurance are more likely to get the care they need, have shorter hospital stays and be generally healthier compared to people without health insurance. With a rich plan in place, your employees can take advantage of preventative care, immediately go see their doctor when health issues arise, and feel less stressed out about their personal finances. A healthy workforce means your company will see fewer sick days, potentially lower insurance costs, and higher employee engagement.
What constitutes a rich healthcare plan? One study found that comprehensive coverage, affordability and choice of providers are the main factors for whether an employee feels satisfied with their health coverage. Consider offering healthcare benefits that prioritize these three factors.
While there are many benefits of providing robust health insurance to your employees, sometimes a “soft” ROI can be hard to sell internally. However, there are ways to save money on rich healthcare plans without sacrificing the affordability, choice and coverage your employees care about.
DC Benefits Consulting approaches healthcare differently. We help companies establish an IRS Section 105 Medical Expense Reimbursement Plan (MERP), which reduces medical insurance costs by reimbursing employees for medical expenses on a tax free basis. Then our proprietary software helps streamline the whole process. We’ve helped our clients save on average 18% or more on their healthcare benefits. Want to find out if we can help you? Get a free consultation!