Basics of Employer-Sponsored Health Insurance

By Danna Green, Licensed Insurance Agent, HealthMarkets Insurance | | 2.12.24

Chronic health problems are costing US businesses over a trillion dollars in lost productivity every year and businesses of all sizes are impacted by employee well-being. It’s vital to examine the benefits of employer-provided health insurance and why more businesses should consider implementing employer-based health insurance plans.

Are Employers Required to Offer Healthcare Coverage?

Small businesses with 50 or more employees are required to provide employee-sponsored health insurance plans, but ones with fewer than 50 full-time employees are not required to provide a healthcare plan. As a result, personal Health Savings Accounts (HSAs) have become popular and contributed funds are not subject to federal taxes. When every US adult was required to hold a basic level of healthcare insurance under ACA, employers were incentivized through tax credit for small employer premiums. However, when the penalty for not possessing basic coverage was removed in 2019, many employees were left without employer health insurance.

What Are Benefits of Employer-Sponsored Health Insurance?

Employees gain access to affordable healthcare that they may otherwise have been unable to access for treatment for chronic disease. Many plans offer access to mental health services too which are often not available with individual plans. Studies have also shown that employees with access to healthcare have higher morale and improved productivity. As for Employers, this perk attracts better talent and makes your business more competitive. In addition, this can reduce an employer’s tax bill by thousands of dollars every year since premiums are tax-deductible.

In Summary:

Plans may be pricier with employer-sponsored health insurance, but employees often gain access to far more perks than with an individual plan. Plus, with the tax advantages, employees can make contributions and reduce their overall taxable income for federal income tax purposes.

About the author:

Danna Green is a licensed insurance agent with over 12 years of experience in the industry. Call today for FREE assistance with Health, Medicare, Small Group, Life or Supplemental Insurance.

Danna Green, Licensed Insurance Agent
HealthMarkets Insurance
3100 Meridian Parke Drive Suite O, Greenwood, IN 46142