Fifty-seven percent of companies offered health benefits to some or all of their 
employees in 2015, paying an average of $ 5,179 for individual coverage and more than double that amount for family coverage. With high health insurance costs per employee, is it logical for companies to continue to offer health coverage in an effort to attract and retain employees?
Reasons No for Health Cover insurance costs
Expense is the main reason that companies avoid providing health insurance. The cost of premiums continues to increase each year, the efforts of companies and hitting small and difficult averages. Offer benefits costs companies the price of the cover itself and the cost of administration and compliance required. In addition, on the basis of the error of a company providing benefits could trigger lawsuits or expensive penalties.
With the passage of the Affordable Care Act, insurance companies can no longer deny coverage based on pre-existing conditions, and carriers can not fix the rates on conditions health. Therefore, employees are now less dependent on their employers to get coverage.
In addition, federal subsidies are available to those who purchase individual coverage in the market, but employees are made ineligible if their company provides adequate coverage group. In short, by offering group coverage, organizations can effectively prevent qualified individuals to obtain health insurance more affordable.
Reasons to provide health benefits
Healthcare is a major expense. In addition to their share of the premium, employees must also pay a number of costs out-of-pocket, including co-pays, co-insurance and deductibles growing.
Many Americans do not have a good handle on their finances and expect their companies to help, including through benefits. 14th US Employee Benefit Trends MetLife study found that only 44 percent of employees feel like they are in control of their finances. Many, especially millennials, are convinced that companies are responsible for the financial health of their workers.
Job seekers and employees expect the same health benefits to form part of their total compensation in order not to offer health coverage will affect the competitiveness of a company in the recruitment and employee retention. It was five years ago, 49 percent of employees believe that their employer should help stabilize their finances by offering benefits. At the time of the most recent MetLife study, that number had risen to 62 percent.
Aside from the expectations of job seekers and employees, the fact is, healthy workers are more efficient. preventive health care will help ensure that your employees are sick less often, take fewer days off to care for sick family members, and to be more productive at work.
Alternatives to group coverage
An alternative to group coverage provides compensation to employees, so they can buy their own insurance plan on the market. health insurance benefits include a sizeable portion of the salary of an employee. According to a study in March 2016 by the Bureau of Labor of the United States, the average cost of health insurance benefits in the private sector is $ 2.44 per hour worked, which represents 7.6 percent of pay total. Instead of lowering wages to reflect the group's hedging costs, companies may contribute a fixed amount so that employees can buy their own individual health plan. According the salaries of employees, this may be a more affordable option for those who qualify for federal grants.
Conclusion
Given the market focused on current employees, the high costs of health insurance, and expectations of workers that companies offer benefits, it seems prudent for company that wants to remain competitive to assist employees in their health insurance costs. To do this, however, requires a nuanced discussion. Since health coverage is a high percentage of the remuneration of an employee, it may be wise for companies to consider providing benefits, so employees can buy their own coverage. That their freedom to choose a plan that is affordable and matches their health conditions permit.
Have you had to evaluate the advantages and disadvantages of the different benefit options? Tell us how you took this decision in the comments below.
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