Benefits from providing Health

Insurance to employees

Proposal For: Desert HarvestingBy: Karina Hernandez

November 28, 2013

Table of content:Statistical data of employers providing benefit.

Benefits as an employer.

Benefits as an employee.

Tax benefits to employers

Percentage of enrollees with employer sponsored coverage in self-insured plans, private sector by firm size, 2000 and 2010.

All firm

s

Less

than 50 employe

es

50 or more

employees

1,000 or more

employees

0102030405060708090

Year 2000Year 2010

Employer benefits:

Incentive for current employees to continue their employment.

Less Workers’ Compensation claims.

More employment demand.

Employer obtains a better reputation for employment.

Employer can expense the cost and claim Premium Tax Credit.

Employee benefits:

Employees will not miss work for insignificant reasons.

Obtain insurance benefit for them and their dependents.

No out of pocket expense for employee.

Maintain more healthy.

Tax benefits to employers:» Providing health insurance coverage to employees

allows the employer to receive a Premium Tax Credit of up to 50% of the premium paid. Reducing the total expense to only 50% of the original amount paid. Even if no tax is due the Premium Tax Credit is refundable.

Conclusion:

» Health insurance coverage is beneficial to both, the employee and the employer. Health insurance benefit can be considered as wage/salary. Because employees are not paying directly, employees will want to maintain their job for their benefit and of their dependents. Employers expense of 50% will be reduced with the increase of productivity from employees. Employees will no longer claim work related injuries if not true. With less claims, this will reduce Workers’ Comp. premiums.