March 19, 2023

Employers' Role in Providing Health Insurance to Employees

in providing health insurance for its employees

As employers seek to attract and retain top talent, they use benefits packages — including health insurance — to entice workers. Employees want health coverage that is affordable and provides access to quality healthcare services.

Larger employers are required under the Affordable Care Act to offer health insurance to 95% of their full-time employees. If the employer does not, it will pay a penalty to the IRS (which in 2020 is $3860 per year).

Employers can help employees stay healthy by providing wellness programs and opportunities for health education. These programs can reduce absenteeism and lower the cost of employee health insurance, Gardner says.

The cost of health insurance can be a major financial burden for employers and employees alike. It takes time to shop around for the right plan and remit premiums.

Offering a flexible spending account, or FSA, to employees can also help them save money on out-of-pocket medical expenses. Employees can set aside money in their FSA accounts and then use it at the end of the year to cover costs not covered by their insurance plan.

Keeping workers' costs down is important, especially as younger generations become more reliant on their health and less willing to sacrifice their work-life balance for vacation time or overtime perks. For this reason, employers should offer a wide range of plans to their staff in order to provide them with the best possible options for meeting their health needs.

In addition, providing health benefits is a great way to make your company more attractive to potential employees and keep current employees from leaving for a better job with a more appealing benefit package. Moreover, these benefits are tax-deductible for both the business and the employee.


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