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  • Writer's pictureAhsan Malyk

Why is Health Insurance Important For Employees?

Participating in the employer's group health insurance plan is currently one of the most advantageous aspects of full-time employment. Group health insurance provided by an employer is becoming a more valuable benefit as healthcare reform develops and has an impact on people's lives and wallets.

It can be rather comforting to have a significant medical expense covered by an employer's benefits program. After all, it's not hyperbole to suggest that, excluding the extremely wealthy, a person without health insurance may be literally just one serious illness or injury away from financial collapse.

The following are important employee perks of employer-sponsored health insurance, along with reasons why you should provide it:

  • It might lower absenteeism. An active, productive employee is in good health. Additionally, workers in better physical condition are less likely to sustain injuries and miss work.

  • It might be a tool for hiring. Employees who are in high demand frequently have an advantage when negotiating work perks and benefits. Benefits like a superior health insurance plan can tilt the scale in your favor if a potential employee chooses between two jobs (or if a current employee is considering leaving).

  • It might improve retention. Since they might be quite expensive to replace individually, employees are more inclined to stay with a company that provides good insurance benefits.

  • It might increase worker satisfaction. When a business offers decent health benefits, employees tend to value it more and feel better about it.

  • It's practical. Don't undervalue this advantage. It might be complicated and unpleasant to invest time and effort in searching for private health insurance on or on a state-sponsored online health exchange. When you provide group health insurance through your workplace, your employee can select your plan and forego that search.

  • Money could be saved. In relation to online health markets: Despite the fact that the Affordable Care Act helps many Americans lower their medical expenses, some may actually see expenditures rise. By providing group health insurance to your staff, you can help them save thousands of dollars each year.

Medical coverage for employees: Why is health insurance necessary?

It can be simple to overlook more widespread benefits like employee medical insurance when so many flashy, novel wellness benefits emerge in the market. Health insurance offered by the employer has evolved into a foundational standard benefit for many businesses.

Perhaps younger generations won't even have any experience working for an employer that doesn't provide medical coverage. Instead of asking about company-sponsored gym memberships or work-from-home days, they can even question, "Why is health insurance important?"

Pacific Prime is refocusing the conversation about employee benefits this week on the significance of employee medical insurance and what you can say to new prospects who are unaware of the reasons why they require it.

What does employee health insurance actually cover?

One of the simplest yet most successful ways to reward and attract talent is to provide health insurance as an employee benefit. Additionally, health benefits may have a number of good effects on an organization's culture and productivity and enhance morale and productivity. Businesses looking to offer medical insurance to employees have a wide range of options, but generally, group health benefits take the following forms:

  • Essential health benefits include coverage for pre-existing conditions, dependents, international and regional travel, outpatient and inpatient care, and dependent coverage.

  • Maternity and fertility coverage, vision and dental insurance are expected extra benefits.

  • Extended/all-inclusive benefits include immunizations, general wellness, and assistance with mental health.

The main goal of an employee medical insurance program is to safeguard and promote employees' health and well-being so they can continue to contribute actively to the business. While there are other benefits, including financial aid or educational benefits, they are not as popular worldwide as employee medical insurance.

Why is healthcare such a well-liked employee perk?

The quick response is that healthcare is quite pricey. Healthcare expenditures in nations like the US amount to around USD 3.5 trillion annually, a pace that has increased by 12,300% since 1960. It is the same throughout the world; even low-cost nations like Thailand have found it challenging to keep expenses low while raising quality. More and more people are turning to insurance to give them peace of mind if they become ill or wounded.

So it should be no surprise that having access to health insurance through a company is highly prized by employees. According to a Clutch survey, a whopping 73% of employees receive benefits from their employers, and of those, 55% said health insurance was the most crucial to their job satisfaction. The generation most likely to require it right now is the millennials, who previously preferred overtime pay and vacation time over health benefits.

It would have been reasonable to inquire, "Why is health insurance significant as an employee benefit?" a generation ago. However, as the workforce has evolved and people's willingness to accept a poor work-life balance has decreased, most businesses now recognize that providing group health insurance for their employees is not just "nice to have"—it is necessary.

Do I need to provide health insurance to my employees?

We are fully aware that not every company is ready to provide employee benefits to their staff. Even if you are, you may be thinking about alternative benefits that could be more desirable than just a group health insurance plan.

Most employees can't afford to pay for medical expenses out of pocket, at least not without suffering a significant loss in any savings they may have. Your employees' health insurance will be more affordable than if they bought it on their own, and as a group, you'll have more negotiating power to make sure that the money you spend on insurance is effectively spent.

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