Corporate Social Responsibility (hereinafter CSR) is present in an increasing number of companies. This CSR is a symbol of the company’s interest in the welfare of its employees and the improvement of their working environment, linked to a correct work-life balance. Today we will see how health insurance or medical insurance is one of the benefits most valued by workers.
The advantages of company health insurance
For the employer, it is often impossible to increase the salary more than what is stipulated in the collective bargaining agreement. However, it is possible to implement other social benefits that can motivate employees and increase their loyalty: health insurance is one of them.
Its benefits are very clear:
- It goes beyond the work environment: it reflects the company’s concern for its personnel, even affecting the personal sphere of employees and their families.
- Tax advantages: up to €500 per person per year is exempt from income tax. It would be a salary in kind that is not subject to withholding, unlike a salary. And, for the company, it is a 100% deductible expense for corporate income tax purposes.
- Increased productivity and reduced absenteeism: faster diagnoses and better access and availability of time to see specialists.
We have not talked about the comparison between increasing the salary and dedicating that same increase to health insurance. As some expert in the field puts it: “Money has a hygienic effect in the short term, but it is not motivating in the long run.”
Modalities of contracting health insurance in the company
It is possible for a company to take out health insurance for managers or, on the contrary, to extend this health insurance to all employees. It may also offer a special rate for the group, but everyone is free to subscribe to it or not, at their own expense. Let’s see:
- 100% group social benefit(closed group): the company pays in full the cost of this health insurance for its employees.
- Flexible remuneration: here the modalities are very disparate → it is possible that the company may finance a part or even nothing, simply make available to the employee cheaper rates than they would find by going alone to the insurance company.
In any case, the advantage is that, fiscally, as it would be deducted from your paycheck, there would be a very important saving in IRPF.
Health insurance with the company, always better
When we are talking about companies of a certain size, in which 40-50 people or more can be insured, the advantages for the insured are many:
- Elimination of gaps in health insurance: full coverage from day one
- No pre-existing conditions: although there may be someone with a disease, when so many people have access to the insurance at the same time, these pathologies are covered because it is in the insurer’s interest.
- Increased pressure to negotiate policy renewals, if the loss ratio is controlled.
Of course, not to mention that the rates are much cheaper (even if they are only 10 people), they already benefit from the prices of the SME health insurance, which is very interesting.
If you would like us to help you compare these prices and groups among different companies, we work with many insurers, so we will save you time and money in finding the business health insurance you are looking for.
