Group health insurance plans can have many benefits for anyone who is employed by your small optometry practice, including yourself.
As an OD, you are keenly aware of how crucial it is that your patients have health-insurance to cover life-debilitating conditions and injuries. This pertains to you and your employees as well, and it is critical to invest in the continued health of yourself and those who keep your practice running.
Along with a responsible optometry bookkeeping plan, the various benefits of group health insurance can act as a safety net for the continued success of your business and the well-being of your employees.
1. After-Tax Compensation
Employees who do not have a benefits plan provided by their company must often pay for health care expenses with after-tax funds.
If set up correctly and with a little paperwork, a group health insurance plan can be designed to allow employees to contribute to health insurance costs from pre-tax earnings.
This is a huge benefit for employees, and it allows them to decrease their taxable income and increase their take-home pay.
2. Tax Credits
While optometry offices with fewer than 50 full time equivalents may not require group plans to mitigate tax penalties, offering group health insurance may make your business eligible for tax credits.
The Affordable Care Act even offers a tax credit to small businesses that provide group health insurance to employees to cover the cost of insurance.
There are some limitations, however. To qualify for a 50% tax credit of expenses, business owners must pay a minimum of one-half of the premium and employ no more than 25 individuals whose average earnings cannot exceed $50,000 annually.
3. Lower Costs
Investing in group health insurance for your practice also ensures the cost of health coverage is manageable for all those insured.
Cost sharing between the employer and the employed means the cost of the premium is often divided. This is a major benefit for employees and employers at an optometry practice. As the owner, your optometry accounting records will indicate this benefit in your bottom line.
4. Protect Your Investment
Thanks to group disability, health, and dental insurance plans, you can proactively protect your investment in the health and overall well-being of your employees in emergencies.
Individuals who do not have health insurance wait longer to seek help for health issues. This can lead to poor health in the long run and increase employee absenteeism.
Employees with health coverage have better access to medical care and preventative health services that are otherwise unaffordable.
Healthy employees can get to work and do the job you hired them to accomplish without hindrance, which contributes to the overall success of your practice.
5. Lower Hiring and Wage Costs
Having a group health insurance plan makes the process of recruiting and hiring new employees easier. This is because offering health benefits makes an employer more attractive than employers who do not provide health coverage.
Additionally, some employers even indicate that employees are willing to accept lower wages if health benefits are included.
6. Employee Retention
Group health insurance benefits are a significant part of retaining a dedicated, loyal, and satisfied staff even more so than retirement plans and vacation time.
In fact, a majority of small business owners indicated that offering group health insurance increased employee loyalty and decreased turnover, and most stated that it helped recruit employees.
Group health insurance benefits also allow practices to attract better employees and increase productivity as a result.
At Caro & Associates, we understand that deciding to provide group health insurance is a major financial decision for you and your optometry practice. Book an appointment with us today and let us help you successfully navigate the field of small business insurance.
At Caro & Associates, we understand the importance of taking action with a small business and that even smallest measures, like our optometry bookkeeping services, can impact your business’ bottom line and contribute to its success.
Managing your optometric practice with modern electronic health record (EHR) and point of sale (POS) systems is one of the most critical parts of running a successful and efficient practice.
Whether you have just opened an optometry practice, or you are looking to improve the efficiency and financial health of your existing practice, using metrics to improve your bottom line is the best strategy to track noticeable growth.