Three smart reasons your small group clients should offer health insurance

Three smart reasons your small group clients should offer health insurance

The following article has been provided by Cigna + Oscar.

Are your clients hesitant to offer health insurance at their small business? If so, they’re not alone. According to a recent survey, 60% of small business owners offer limited insurance benefits, if any, due to high healthcare costs. Plus, more than two-thirds of respondents admit they don’t believe health insurance is geared toward small businesses.

At first glance, it can be easy to think that health insurance is “only for big companies,” but the truth is, there are plans that meet the needs of the average small business owner. Small business owners just have to be open to investigating them. For example, Cigna + Oscar offers access to great doctors alongside a new model of supportive care and innovative technology - all at an affordable price.

If your small group clients are on the fence about offering health insurance at your workplace, consider the benefits. Here are three solid reasons a quality health insurance plan could be good for their bottom line.

Health insurance can help your clients recruit and retain top employees

We’re still living through the Great Resignation, a unique post-pandemic labor shortage defined by employers struggling to recruit and retain top workers. And as of May 2022, the layoff rate is still low and the demand for workers continues to remain high. This means that if they are having trouble hiring and keeping great employees, especially in a job seeker’s market, health insurance can give them a competitive edge. American workers are acutely aware of healthcare costs and often seek out companies that offer better benefits. In fact, healthcare can be the key deciding factor when taking a new job.

A quality health insurance plan can:

  • Demonstrate that your clients care about their employees’ health and well-being.
  • Create a more caring and valued work environment.
  • Emphasize your client’s mission and values.

Also, it may not cost as much as they think. There are health plans that are uniquely designed for the average small business owner. These plans are affordable, explain coverage so it’s easy-to-understand, and make administration simple and fast. After all, most small business owners don’t have a large chunk of time to manage their coverage.

It can make your client’s employees healthier and more productive

A healthier workforce creates a more productive business. Employees can get more accomplished when they’re working at their full capacity, rather than taking sick time.

On the other hand, when employees are sick, it can be very costly to business owners and the economy. According to the Centers for Disease Control and Prevention (CDC), absenteeism and productivity losses due to health issues cost $1,685 per employee, or $225.8 billion annually. 

Without health coverage, many employees may skip recommended physicals, immunizations, and preventive screenings. This can leave them vulnerable to anything from the annual flu to more complicated cancers - and it can leave business owners without workers to get the job done. All of this is costly, and unfortunately, very preventable. When employees have access to a provider network and covered preventive services, they’re more likely to take better care of themselves.

Have your clients consider offering a health insurance plan to help their employees be more productive at work. Many plans even offer virtual urgent care and telemedicine appointments so employees no longer need to take more time off work to see a doctor for some appointments.

Your client may be surprised at how much more their business can achieve with a healthier workforce. For example, your client may have more products to sell, more contracts signed, or just a more efficient work day. At the very least, they can try coverage for a year or two, and then see what improvements are made.

There may be tax incentives they can tap into

Some small business owners may qualify for a tax credit when they enroll in a Small Business Health Options Program (SHOP). This tax credit can save you up to 50% on the cost of your employees’ premiums. To qualify, a business must:

  • Have fewer than 25 full-time equivalent employees.
  • Offer an average employee salary of about $56,000 or less.
  • Pay at least half of full-time employees’ premium costs.
  • Offer SHOP health coverage to full-time employees.

On the other hand, it may be more cost beneficial to offer a health plan that’s specifically geared toward small business owners. For example, Cigna + Oscar and other similar companies take pride in offering a digital platform, as well as affordable and flexible options. Your clients can talk to an accountant about any deductions that may be available to them if they opt for private business insurance coverage.

The bottom line: health insurance pays off.

As a business owner, protecting and caring for their employees should be a priority. After all, these are the people who ensure your client’s doors stay open. When your client offers health coverage, they can recruit and retain top talent in their industry, and keep their productivity high. In the end, this can translate into higher profits. Plus, they’ll earn a reputation for integrity and caring for their people - and let’s face it, that’s priceless.

Cigna + Oscar offers access to great doctors alongside a new model of supportive care and innovative technology — all at an affordable price. Visit the website to learn how we can help.

Cigna + Oscar coverage is insured by Cigna Health and Life Insurance Company. CA: benefits administered by Oscar Health Administrators. Other states: benefits administered by Oscar Management Corporation. Pharmacy benefits provided by Express Scripts, Inc. Cigna + Oscar health insurance contains exclusions and limitations. For complete details on product availability and coverage, please refer to your plan documents or contact a representative.

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