Why offer health insurance?

July 20, 2016

Small businesses often are running on a shoestring, and the cost of health insurance can be a major expense when margins are slim.

However, businesses may benefit from offering health insurance in the long run, especially if it helps attract and retain qualified workers. Health insurance is one of the most sought-after of employee benefits, and failing to offer insurance could put a business at a competitive disadvantage.

Here are some other reasons to obtain insurance through beWellnm for Small Business:

  • Reduce absenteeism. Employees with insurance may be more likely to take advantage of preventive exams and screenings. That can help keep employees healthy and on the job.
  • Tax deduction. Employers can take a tax deduction for the cost of health insurance premiums paid on behalf of employees.
  • Tax credit. Small employers (those with fewer than 25 full-time-equivalent employees) may be eligible for a tax credit for a portion of their contribution to employees’ insurance premiums

Things to consider

Here are some decision factors for New Mexico small businesses:

  • Local competition for workers
  • What competitors are offering in terms of employee benefits
  • The cost of providing a health plan
  • The level of coverage and how much to pay toward employee premiums
  • The number of eligible employees. 
  • Whether the business is eligible for a tax credit for providing health coverage

Read more about small business plans