The Pros and Cons of Providing Employee Healthcare Benefits



Health insurance is a major factor for many employees when considering a job prospect. The cost of standard care is considerable for an individual; therefore, if an employer is offering it as part of a package, then this is a huge consideration for potential workers. Businesses, of course, don’t have to provide it and it can be quite costly for small to medium companies trying to manage cash flow. It is, however, an important consideration for all employers big or small, as there are several pros and cons which need to be established before you make a final decision. If you want to attract the best candidates, then this is a big pull and if your niche is quite competitive, having something extra to offer that special someone might make your company more attractive to potential candidates than one of your competitors.


Take a look at some of the pros and cons of offering health benefits to employees and see if this could work for your company.




Employees should always be viewed at as an asset of a company, but, of course, they are also the largest expense usually on the balance sheet so weighing this up is critical in the decision-making process. Some pros of providing health benefits include:


  • A good health coverage package which includes dental and vision health can help attract and retain good candidates.
  • Employers can receive tax benefits if offering benefits to workers.
  • Workers may forfeit a higher salary if there is a good package on offer, which can save the company money in the long run.
  • The company may receive discounted access to benefits if a certain number of people join a scheme.
  • Benefit packages can boost morale and reduce staff absences.




Smaller businesses may feel the pinch when offering health benefits to workers so contemplating the cons is another important factor.


  • If you have less staff on the payroll, you may not be able to access good deals which may mean higher costs to the business.
  • Administrative costs of benefits can be high.
  • The cost of health benefits is rising so may cost considerably more to the company in the future.
  • There are other issues such as legal setup and regulations to administer.
  • Any mistakes made could cost the company in fines or lawsuits.


Access to good medical facilities such as provided by Insight Medical Partners and their partnering practitioners provide the best care and quality service to a range of people. The importance of seeking advice and considering both the pros and cons of providing health benefits may be an expensive initial outlay, but you may reap the rewards in the future with loyal and productive staff.


Legal compliance and cost are also major factors to consider, and although the pros may outweigh the cons, it may not be financially viable for companies in the initial stages of development. If you’re unsure, seek advice and run through a range of options that may give you and your workers the best employment package.