Advantages and Disadvantages of Offering Group Benefits

Posted on: October 21, 2015 by Javier iSure

While the law requires employers with 50 or more full-time employees to provide health insurance, smaller businesses may choose to forego the benefits altogether. While healthcare is a critical selling point for prospective employees, companies must weigh the advantages and disadvantages of offering Miami Group Health and Life Insurance.


Attract and Retain Employees- Offering medical benefits can set your business apart from competition and assist in attracting potential qualified talent. Moreover, these benefits can help to ensure employees are content and stay with the company longer.

Tax Advantages- According to BizFilings, your company can offer employees something that increases their compensation package and yet allows you an income tax deduction for the contribution so that out- of-pocket costs are less than the value of the benefit to the employee. Further, if the business is incorporated, the full cost of insurance is tax deductible.

Group Purchasing Power- Even if you choose not to cover any portion of your employees’ healthcare costs, group rates can still be offered through the business. In addition, small businesses have the opportunity to purchase healthcare through government -run programs through the Small Business Health Options Program (SHOP).


The Costs- Over the last few years, healthcare costs have undoubtedly increased. While resources and finances are traditionally more limited in smaller businesses, these costs may be an additional financial burden.

Liability Concerns- The liability of selecting a physician or healthcare provider who commits malpractice on an employee can fall into the employer’s lap, states BizFilings. Although this may seem like a far-fetched idea, documentation of this does exist and cost lead to litigation and financial loss.

Cost-Sharing- Especially for smaller businesses, it is inevitable that some of the costs of providing health insurance will be pushed onto the employees. Although this may control costs for the employer, the employee will be left to manage the rest.

At iSure Insurance Brokers, we offer comprehensive healthcare programs to accommodate a variety of business sizes. Our customizable options can be tailored to meet your business’ specific needs. To learn more about our operation and protections, contact us today at (855) 381-6123.

Posted in: Blog Healthcare Insurance