Healthcare costs in the UK are becoming more and more expensive. And although the UK’s National Health System (NHS) offers free and quality healthcare, the Covid 19 pandemic had a considerable impact on the NHS. With this, job applicants are looking for companies that provide health insurance to cover their private hospital and medical bills.
Can your business handle health insurance? If you have 250 employees and below, you can choose health insurance for small business. It is cheaper than corporate medical policies.
What is Small Business Health Insurance?
Small business health insurance is an insurance policy that can help owners of small businesses and their employees access private healthcare. Business owners who can have this health insurance are those with employees not exceeding 250.
You can choose specific employees to include in the coverage as a business owner. The start of the coverage may vary depending on the people included in the private insurance.
How Can Health Insurance Improve Your Business?
Offering health insurance will protect not only the health of your staff but also the future of your business.
1. Attract Top Talents and Retain Them
The Society for Human Resource Management (SHRM) found out that employees prefer health care benefits over other benefits.
Top talents are valuable in your business because they can assist your business with their knowledge and experience. However, top talents always have other job offers to consider. An excellent health care plan will encourage them to join your business.
When employees can access private healthcare and preventive services, they can avoid serious health problems in the future. It will not only benefit your employees by protecting them from financial debt. It will also prevent early retirement or termination due to illnesses, decreasing labour costs.
Quality workers are hard to find. By retaining your employees, you keep workers already familiar with your business and have already fostered loyalty. You will save time and money by preventing a high turnover rate and by needing to train new employees.
2. Have Productive, Healthy, and Satisfied Employees
Healthy employees are more productive. If you can secure your employees’ social well-being by providing access to healthcare, they are less likely to use sick or holiday leaves. Providing health insurance benefits to your employees will make them feel valued.
Valued employees will put their heart and soul into their jobs which translates to an excellent performance to help your business grow. Happy employees are:
- More enthusiastic, helpful, and have better interaction with clients.
- Inspired to improve their skills through training and seminars continually.
3. Get Lower Taxes and Insurance Costs
The cost of the premium insurance is reduced when it is purchased as a group. The more people there are in group insurance, the lower the average cost of the premium for each member.
By having small business health insurance, you are helping your employees save up to 30% on their health insurance premiums compared to when they get it individually. When they purchase health insurance, the government taxes the money. That is one of the reasons why employees prefer healthcare benefits over a higher salary without health benefits.
A group health insurance will also decrease your tax because the premium is tax-deductible. Your payroll taxes are also reduced.
4. Develop Positive Work Culture
Providing health insurance benefits will demonstrate how you value your employees. It plays a significant role in encouraging a better work environment.
When employees feel appreciated and valued, it will contribute to positive work culture such as:
- Positive emotions about their well-being and the company;
- Improved employee relationships which can foster teamwork and creativity;
- A buffer against work stress;
- Increase employee performance and effectiveness.
Show your employees you care about them, and they, in turn, will care for your business.
How Much Does it Cost?
The cost of small business health insurance depends on various factors such as:
Number of Employees
The greater the number of employees is, the lesser the individual cost of the premium for each employee becomes.
Age of Employees
Like any other insurance, the older the person is, the higher the insurance cost gets. The monthly premium for employees 60 years old and above can be two to three times higher than employees in their thirties.
Location of the Business
The cost of health insurance depends on the prices of healthcare services in the company’s area. Insurance costs are higher in London than in small towns.
The riskier or more hazardous the jobs in your company, the higher the cost.
Type of Insurance Plan
There are three types of health insurance plans, which include:
- Basic: Inpatient and hospitalization expenses;
- Medium: Inpatient, hospitalization bills, and outpatient therapies;
- Comprehensive: Inpatient and outpatient expenses, mental counselling, psychotherapy, extra treatments. It may also cover other options.
A comprehensive health insurance plan is costlier than a basic plan.
Offering health insurance to your employees will benefit your employees and your company. Remember, your employees are your business’ assets, and when they feel valued, they will be more productive in their jobs.