COMP NEWS – A new study found that employers with more than 100 workers saw a sizable ROI for offering health coverage – nearly 50% in many cases, with that number expected to jump over the next few years.

More than half of all Americans – over 180 million hardworking individuals and their families – receive their health coverage through their jobs. Employer-provided coverage delivers affordable access to care, effective ways to improve health, and peace-of-mind. A study from Avalere Health found that employers with 100 or more workers saw a 47% return on investment (ROI) for offering health coverage in 2022. That ROI came in the form of increased recruitment and retention, better employee productivity, reductions in medical costs and disability claims, and tax benefits. That ROI is expected to jump to 52% by 2026, according to estimates from Avalere.

Employers should see a return of $346.6 billion in 2026, including $108 billion in direct medical cost reductions, and $139.70 billion in tax benefits according to Avalere.

One study shows that companies who offer health care have a more productive workforce.

Taking care of employees by offering quality, affordable health benefits is not only the right thing to do, but it’s good for business, Alabama State Senator Lance Bell writes in a guest opinion article for Yellowhammer. “Employer-provided coverage is a great example of private sector investment in the workforce,” Bell notes. “It is a commitment from employers to offer hardworking Alabama residents good, quality health care, at a fair cost – a commitment that makes more than just financial sense, but one that also inspires loyalty and fosters retention of top talent.”

While employers offer health coverage to improve the health and well-being of their employees, this Avalere study shows definitively that companies benefit as well by having a healthier, more productive workforce, according to Ray McCarty, president of Associated Industries of Missouri, the state’s oldest premier business association. “Offering health coverage is a strategic move that does more than meet a basic need. When companies provide health benefits, they position themselves as competitive players in the job market, attracting the best talent,” McCarty writes in The Missouri Times.

To read more about employer-provided health plans and how they provide a long-term ROI, click here.

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