Health insurance is an important thing to have, but many small companies don’t bother getting it for their employees? Larger companies are often required by law in the United States to carry health insurance for their employees, but for fewer than 50 employees there is no such requirement at this time. So why should the smaller companies supply health insurance for their employees? Why waste that money? Well here are a few reasons that any business should consider getting health insurance for their employees.


First and foremost is company moral. If you supply health insurance for your workers, you are showing them you care for them and are concerned about their health and existence. Many employees won’t talk about how much they make, but they will often brag on what good health coverage they have. Not worrying about their family’s health, as not everyone can afford good health coverage, is also a great deal of relief and will raise the employee’s moral. The better the moral a company has the better the workers will work, and the more money is made, it’s a win-win situation.


If you carry health insurance, you will find you have less of a turnover in the company. Good health insurance will help you keep good employees. It is hard to find a job normally, but to find a good job and one that has good health insurance is even harder. So there is less chance that they will leave the company. When people have a family, as opposed to just being single, they have a lot more to think about when moving to a new job. Giving them the benefit of health insurance will make it all that harder for them to leave.

Attract better employees

Just as it will make it harder for employees to leave the company, having good health benefits will make it easier to steal good employees from other companies. Especially from a company that doesn’t offer the same benefits. Just look around online where people talk about jobs, the offering of a good benefits package is one of the first things they talk about.

Less absenteeism

With a good health package, people will go to the doctors more and stay healthier. Without health insurance, people have a higher chance of getting sicker and staying off work. For example, strep throat is contagious for months unless you take prescription penicillin, and if you take the penicillin its only contagious for 3 days or so. So what would you prefer, everyone, getting sick in the building or just one person off for a few days? Health insurance can pay for itself over time.


Getting health insurance for your employees saves you taxes, as you can use it as a deduction. It can save your employee money as well. If an employee buys health insurance on their own, they are buying it with post-tax money, their paycheck. If the company buys it, it is a tax deduction and the employee is getting a benefit of the insurance without having to pay tax on it.

Though it might cost the company money according to the accountant, and you might see it as a wasted expense, it has many benefits that you might not realize initially. People are the greatest asset your business has, regardless of what you are selling. Keeping the best ones and making them happy should be one of the primary functions of the owner. Finding great people and keeping them will make your business grow. So that unnecessary expense can actually make your business grow and prosper. Treat your employees right and they will make your life better.