Private health insurance is an attractive benefit for employees, as it entitles them to personal medical care in the event of accidental injury or illness. As such, offering private health insurance, particularly to top talent and experienced professionals, is a great way to ensure employee satisfaction, reduce the likelihood of absenteeism due to illness and enhance your business’s reputation. However, if you’re a small business owner, this might not be economically viable – so here’s what you need to know about health insurance before deciding.
What Is Health Insurance?
Health insurance is an umbrella term which encompasses a variety of cover plans. In most cases, they cover inpatient care (i.e. hospital stays), limited outpatient care (such as doctor’s visits), and digital and phone appointments with GPs. Different providers will offer different types of additional coverage plans – often at an increased cost – so it’s essential for businesses looking for health insurance packages to compare their options carefully before deciding on one provider over another.
What Is Employee Health Insurance?
Employee health insurance is when a private company offers health insurance as part of its perks package for salaried employees. When businesses choose to provide employee health insurance, the size and scope of the box will vary depending on their budget. More giant corporations may offer better deals than those put together by smaller businesses or start-ups.
Do I Need To Provide Health Insurance To My Employees?
In the UK, medical care is covered by the National Health Service – free at point-of-use – so there is no legal obligation requiring employers to provide additional healthcare coverage beyond what is provided by the NHS. Generally speaking, then, businesses that offer employee benefits in terms of healthcare/medical cover do so to remain competitive in their industry or attract desirable candidates who may look elsewhere in search of better packages than those offered by other companies or organisations.
How Much Does Employee Health Insurance Cost?
The total cost of providing employee health packages will depend on how many people you plan on covering under your scheme and what type of coverage you decide on (basic vs comprehensive). While some providers are willing to work with companies who have fewer than 250 employees – this figure varies from provider to provider – it should also be noted that adding optional additional coverage plans can lead to higher premiums across all staff members involved in the scheme; something which might not fit within your small business budget!
Should A Small Business Offer Health Insurance?
Whether you decide offering private healthcare cover makes sense for your small business depends upon numerous factors: how new you are (Stage 1 entrepreneurs might not want to go down this route just yet), how many employees you have and whether you can afford it are all points worth considering when making this decision. Ultimately though, offering health insurance could mean attracting more talented workers while creating a healthier workforce, which can help your business succeed in the long run!