Do I Need Group Health Insurance For My Employees?

December 12, 2016

Group health insurance coverage for employees, is offered by companies to those staff members who are eligible, and close family members may also be included. This is naturally seen as a benefit of working for a company, and many employees will consider the health insurance package on offer, before they accept a position within a company.

For that reason - and because it’s in the best interests of any company to help protect the health of their employees –most companies offer eligible members of their workforce, group health insurance, and most US citizens today, are covered either by their own employer, or through a family member.

My business is small, do I still need to provide health insurance for my employees?

At present, small employers are not legally required to offer their employees, health insurance packages, but of course that doesn’t prohibit you from doing so. While you may feel that you’re unable to afford health benefits for your employees(and not offering them may well boost your bottom line in the short term), this could have a negative impact on the long- term prosperity of your business. Since health insurance coverage is an important aspect of employment and many employees believe it to be an entitlement, potential employees will want to work for a company that provides them with it and may avoid those who do not. If you’re trying to attract quality candidates for positions within your company, then you will almost certainly have to offer health insurance at the very least, while some employees may also demand a retirement plan or disability insurance.

Once provided with health insurance coverage, employees tend to have a better sense of job satisfaction and are generally less inclined to miss workdays or quit their position; they may even feel more motivated to meet the company’s goals and targets. Overall, research has shown that when employees feel that their benefit needs are being met, they are more satisfied and productive, and so most small business owners consider it a worthwhile financial commitment to offer coverage to all their eligible staff members. 

How is the cost of employee health insurance calculated?

The first step is to apply for group employee health coverage to an insurance company, who will then assess and review your application. If you are successful, the insurance company will go on to use different criteria, such as the location and size of your business and the age of your employees, to assess your needs beforeoffering you a monthly rate or premium. 

If you’re still unsure as to whether you should provide your employees with group health insurance,why not browse the policies that are available to you, and take things from there? Remember, research is free, and speaking with other small business owners may also help you to decide.


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