Top reasons businesses should offer group health insurance to employees

Your business is growing fast, which means you’ve hired more employees to help get the work done. But what are you doing to ensure those valued staff members who you’ve taken the time and energy to train will stick around in the long run?  

Consider offering group health insurance to your employees; it’s a key factor in staff retention and ensuring your workers feel valued. In fact, employees with group benefits are 87 per cent less likely to leave their current organization, making group health coverage a crucial tool for building a loyal and satisfied team.   

What is group health insurance? 

A group health insurance plan provides coverage to a group of members, typically employees of a company or members of an organization. Individuals who are part of a group health insurance plan usually have access to medical services at a lower cost than individual plans, since the insurer’s risk is spread across a group of policyholders. The benefits and coverage of group health insurance plans vary depending on a company or organization's size and budget. 

How does group health insurance work? 

Companies and organizations purchase a group health insurance plan to offer to their employees or members. Group insurance varies from plan to plan due to differences in insurers, plan types, costs, and terms and conditions.  

After a company or organization chooses a plan, its employees or members can accept or decline health insurance coverage. Some plans offer a choice between basic and advanced insurance coverage, along with the ability to extend coverage to immediate family and other dependents. Premium costs are split between the company or organization and its members.  

Why provide group health insurance?

There are numerous benefits to a group health insurance plan for both employers and employees. These include: 

Access to quality health care

Group health insurance allows your employees and their families to seek medical assistance when they are ill or injured, and receive financial help to cover expenses such as prescriptions, treatments, and procedures. Many plans also cover services such as physiotherapy, massage, and mental health services. 

Additional coverage options

When an employer purchases group health insurance, the package may include dental, vision, life, disability, and critical illness insurance. These types of employer-sponsored coverage are often low-cost or even free of charge. 

Enhanced employee engagement and retention

By showing your employees that you’re invested in their personal well-being, they are more likely to feel appreciated. When employees feel valued, they are less likely to leave – particularly for companies that don’t provide group health insurance or other benefits. 

In fact, over 60 per cent of surveyed businesses said that offering a benefits plan has dramatically improved their ability to hire top talent. 

Decreased absenteeism

A healthy employee is a productive employee. When health issues are identified and addressed early, your employees can receive the necessary treatment to feel better and return to work.  

Tax benefits 

For both employers and employees, group health insurance plans offer numerous tax benefits. The money employers pay for monthly premiums is tax-deductible, and employees’ premium payments can be made pre-tax, reducing their total taxable income.  

How can CAA help? 

If you’re interested in purchasing group health insurance for your employees, consider the CAA Business Membership. In addition to Group Benefits, your Membership gives you access to an à la carte menu of innovative business solutions – including Commercial Roadside, Commercial Pit Crew, Employee Memberships and business insurance. 

You can request a free quote and discover how our competitive pricing makes quality coverage affordable for your business. To learn more, visit CAA Business Membership.