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4 reasons to offer employer-sponsored health coverage

Updated: May 21, 2025

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Whether you have 10 employees or 10,000, it’s essential to offer health coverage in today’s market. If employees don’t feel like their employer values their health, they’ll look for work elsewhere. And you’ll have to spend time and money to hire and train their replacements. Adding health coverage to your benefits package can be the competitive edge you need to keep your current employees satisfied, attract new talent, and avoid costly turnovers.

Health care is ranked the number one most important benefit that a business can offer employees

Here are 4 reasons you may want to offer health coverage:

  • Attract top talent — 88% of employees feel a company’s benefits package is an important factor in whether or not to accept a job.1 And 56% of employees in small companies need to see how much their prospective employer pays toward benefits before they’ll accept a job offer.2 When you’re competing for top talent, health coverage is a must. In fact, 92% of businesses offer coverage to stay competitive in the hiring process.3
  • Increase retention — 3 of 4 employees say that their health benefits impact their decision to stay at their current job, and 65% say health coverage gives them financial peace of mind.4 When you care for your employees’ well-being, they feel valued and are more likely to stay.
  • Get tax advantages — When you offer coverage to your employees, you can deduct 100% of the costs. Businesses with 25 or fewer full-time-equivalent employees may also qualify for small business tax credits.
  • Earn a high return on investment — For every $1 invested in employee health care, employers get a projected average return of $1.495 Increased productivity provides the greatest ROI. Healthy employees are good for business.
Health care is ranked the number one most important benefit that a business can offer employees

Investing in the health of your workforce can build a healthier future for your employees and your business. But it’s loyalty and satisfaction that can keep your business moving forward — especially if you rely on just a handful of trusted employees at work each day.

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Footnotes:

  • 12024 Employee Benefits Survey, The Society for Human Resource Management, accessed April 4, 2025, shrm.org. Continue at 1

  • 22024 Quickbooks Allstate Health Solutions Benefits Survey, accessed April 4, 2025, digitalasset.intuit.com. Continue at 2

  • 3Why Do Employers Offer Health Insurance?, PeopleKeep, Inc., January 31, 2025. Continue at 3

  • 4New Survey: Consumers Say Comprehensive Employer-Provided Coverage Vital to Their Financial Peace of Mind” press release, AHIP, May 24, 2023. Continue at 4

  • 5Return on Investment for Offering Employer Sponsored Insurance, Avalere Health, June 28, 2022. Continue at 5

  • 6See note 1. Continue at 6