Importance of Company-Provided Health Insurance
Health insurance is an important benefit that is offered by companies to employees, as it usually is the most cost-efficient way for them to obtain coverage for themselves and their families. It can also be beneficial from the standpoint of the employer.
History
Company-provided health insurance became prevalent during Word War II. Due to wage freezes resulting from the need to support the war effort, companies began to offer health insurance in lieu of raises.
Significance
For employers, being able to offer group health insurance can be used as a recruiting tool when seeking new employees. It can also help to retain employees who do not wish to give up their current health coverage at work.
Benefits
For employees, having access to health insurance at work means they don't have to seek coverage on the open market, which can be more expensive and more difficult to obtain.
Features
An important feature of company health insurance is that the risk is spread among a large group of people. As a result, coverage is more accessible and the premiums remain relatively low.
Considerations
If people did not have access to company health insurance, they could choose to do without coverage. The result could be financial catastrophe if a medical emergency or serious illness arises.
Tags: health insurance, company health, company health insurance
