Health Insurance Benefits Impact Organization’s Business Results and Employee Wellbeing

Impact of Health Insurance Benefits on An Organization’s Business Results

Health insurance is one of the most common employees’ benefits in most organization. Organizations normally provide health insurance to entice the employees. However, this ends up benefiting the organization too.  Health insurance enhances the company’s ability to retain and recruit high-quality employees. Provision of favorable health benefits among others makes it easy for the company to earn employee satisfaction and desire to work with them. This enhances its retention cost, and hence reducing workers turnover and recruitment costs.By providing health insurance a company could attract workers who expect creating a long-term work relationship. Health insurance may also play an essential role in improving the health of workers. This increases the workers’ productivity and lowering turnover and absenteeism. Moreover, employees in a good work environment are more productive and happier. Thus the company also creates the notion that it cares about its workers health as well as that of their dependents. Instead of having discrete coverage, the company should be having a common plan for all its workers with ordinary minimum benefits (O’Brien, 2003).

Impact of Health Insurance Benefits on Employees Wellbeing

Employees want employment-founded health insurance for themselves and their dependents so as to safeguard them from disastrous costs of severe illnesses and to guarantee medical care access. For workers without the income or time to save for medical care, insurance might be the only means to get medical care which would else be unaffordable. Based on the provided insurance system, it is probable for individual workers to purchase health insurance privately. Nevertheless, this arrangement is characterized by high private individual coverage cost, coverage access barriers, and steep costs of transaction. These challenges and expenses assist in accounting for the group coverage values to employees. It explain the reason why employees demand coverage via their employers in absence any other reasonable alternative. Group coverage increases the beneficially bargaining power, and thus it is much cheaper compared to individual private coverage (Kwon& Hein, 2013). Moreover, individual covered through their employers are mostly workers in good health, thus they get cost advantage in employment-based plan. The cost is also reduced by minimal administrative expenses and reduced advanced selection. In addition, employment based coverage also experience special federal tax treatment where by the amount the workers contribute to the health insurance directly from the employer is not taxed. This makes is cheaper to have a group cover than individual cover. With this cover, the employees are guaranteed of regular medical checkups, and access to standard treatment at the onset of the disease symptoms ensuring a healthy workforce and at minimized cost (O’Brien, 2003).

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