Posted by: tpigeon14 | April 12, 2011

Healthy Employees, Healthy Company

The current economic situation compels businesses to limit costs via any possible method. Eliminating employee health insurance has become a common way for companies to reduce spending. According to an article published in the Santa Monica Daily Post, “small businesses pay 18 percent higher health insurance premiums than large businesses, as well as higher administrative costs.” On average, a business can save $3,000 per employee if they do not offer insurance plans.

So what about the small business owners? What about companies that are struggling to survive to the next quarter? Cutting health insurance plans seem like a logical expenditure cut. These plans are not required for the company to operate. Besides, employees can obtain their own source of health insurance.

However, the ethical side must be considered. Many people believe that providing health insurance to employees is an ethical action. For one, it guarantees their family health insurance while they still work at this job. Every person should have the right to seek quality medical assistance when required.

Personnel might view employers who do not offer health insurance plans as uncaring and cheap. In addition, any job that comes with a health insurance plan becomes more attractive. This can draw more skilled workers to your small business. The video below describes some of the conditions small businesses must meet to qualify for health insurance plans.

Many people struggle to find affordable health insurance when not offered by their employer. Health insurance has become a necessity to afford quality treatment for emergencies, vaccinations, or annual check-ups. For a small business, dedicated employees are the most valuable asset. How much would you pay to protect your most important assets?

Other helpful links:

http://www.smdp.com/Articles-c-2011-04-10-71620.113116-Small-business-owners-unsure-on-Obamacare.html

http://www.texashealthoptions.com/cp/smallbiz.html#self-funding

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Responses

  1. You contend that it is unethical for small business owners to ask their employees to provide for their own health insurance. I have sympathy for those employees who may have to find their own health insurance, but to argue that small business owners, many of whom are already struggling to keep their company in business, are being unethical in cutting health insurance for their employees is a fallacy. I am sure that most small business owners would provide health insurance to their employees immediately if they could. However, some small business owners are faced with the decision of cutting health insurance or cutting employees, and they are not violating ethics because they choose the former.

    • Very valid point bisforbusiness. I recognized that many small business owners are currently struggling in these tough times, and this is a commonly used way to cut costs. However, the recent healthcare reform has allowed for many small business owners to receive tax credits if they offer health insurance plans to their employees. So, while it may cost more, the company also receives benefits, which decrease the overall cost for the companies. I understand that some businesses truly cannot afford to offer this service, but to not consider nor try to offer this service, when it costs less for the employee and serves as a great selling point for a company when recruiting, is a shame. It is my personal belief that every citizen should have easy access to health insurance, and often the easiest and cheapest way is through their employer.


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