Did you know over 26 million Americans didn’t have health insurance in 2019? It’s not a secret that medical costs in the United States are expensive — and in various cases, people leave the hospital with substantial debt. That’s precisely why companies offer benefits to their workers.
However, health insurance can be tricky to navigate as a business, especially when your employees are contractors. Should you give your blogging staff medical coverage? Here are some things to consider.
Coverage Requirements for Small Businesses
First, you’ll want to know whether you’re required to offer health care. If you employ more than 50 full-time workers, you’re subject to specific provisions that say you’re obligated to give employees insurance. That’s not the case when you have less than 50 employees or they are contractors.
This expectation means you have to give your workers and their dependents health insurance until their dependents turn 26 years old. There’s no need to offer coverage for their spouses unless you want to make that another benefit. If you don’t comply, you could face penalties.
What Options Should You Consider?
There are two types of health insurance: individual and group. Because you’re a business owner, you’ll want to explore group coverage possibilities since individual refers to plans you’d purchase for yourself or your family. These are options only organizations can buy for their employees on their behalf.
If you take a look at the health care marketplace, you’ll notice endless choices. There are alternatives like self-insurance, which tends to work best for small to mid-level businesses that don’t have large workforces. You’ll want to look at your choices, including preferred provider organization and point-of-service plans.
How much does employer health care cost on average? Last year, employers paid $7,470 and $21,342 for single and family coverage, respectively. That’s why you should shop around before deciding on a plan for your team. Browse through various options to know which one best suits your needs.
After you decide on a plan, you’ll want to work with the insurer and your bloggers to activate it during an enrollment period.
Advantages of Health Care for Employees
Both you and your blogging staff can enjoy various benefits when you offer them health care. Coverage can be a significant expense, but you may determine that the advantages outweigh the downsides when you look at the entire picture.
Your employees will feel less stressed because they’ll have coverage, and you can even use the fact that you offer health care as a way to attract new hires. It can impact employee retention, too. When surveyed, 56% of adult workers said their job’s insurance options mattered in their decision to stay.
Additionally, you can enjoy tax benefits and reductions that make health care more affordable. There are even specific credits small businesses can use to offset costs further. Altogether, your business may be able to benefit financially when you offer insurance to your blogging staff.
The Verdict: Health Insurance Can Be an Effective Benefit, but It’s Not Mandatory
Health insurance can seem like a burden to many small companies. It’s a tricky landscape to navigate, especially when you have employees like bloggers that may not be considered full time. Still, you should also note that health care can be a dealbreaker for workers, as costs are steep in the United States.
While you’re not obligated to give your blogging staff health insurance unless you employ more than 50, you may still want to consider it as a beneficial addition for everyone involved.