Want to attract—and keep—employees? Providing health insurance may help. According to a survey by American Health Insurance Plans, 56% of participants said receiving health insurance benefits impacted their decision to stay at their current job.
The cost of offering health insurance as small business averages $400 to $500 per employee per month, that number might even be lower, especially when those covered are young and healthy. If you pit the cost of providing health coverage versus the time involved with finding, training and retaining qualified staff, you’re already in the black. A study by the Society for Human Resource Management (SHRM) shares that on average, the cost to hire and train an employee is $4,129, taking around 42 days to fill a position.
Now’s the time to think seriously about adding healthcare coverage to your benefits package. Open Enrollment for small business health insurance coverage begins Monday, Nov. 1, and runs through Jan. 15, 2022.
The Small Business Health Options Program (SHOP) Marketplace provides detailed guidance on the type of plans that are available through Healthcare.gov to small businesses that have less than 50 fulltime employees. The plans provide quality, affordable health and dental insurance, but also give small employers a choice and flexibility in selecting the right coverage for their employees. The Small Business Administration (SBA) offers a resource for understanding the options available to small business owners and self-employed individuals in 36 states, five U.S. territories, and the District of Columbia using the HealthCare.gov platform.
The SHOP plans are also generally the only way to qualify for the Small Business Health Care Tax Credit, which can be worth up to 50% of an employer’s contribution to premium costs. There are a number of requirements for obtaining the credit, but it is generally available to businesses with 25 for fewer employees who have a SHOP plan.