If you ask most workers how much money their employers spend on staff positions, they would probably list the amounts of workers’ salaries.
But the unseen expenditures for health insurance, continuing education and other employee benefits can drive up the cost of an employee by one-third of his or her salary.
Providing health insurance for employees can be the difference between profit and loss for many businesses. This is why coverage is not offered at all places of employment. In fact, in San Diego County, only 56 percent of the population has work-based health insurance.
It’s a dilemma for the small-business person in particular. On one hand, most employers would like to offer health benefits to their workers.
They understand the social and economic benefits to their business and the community at-large. But providing this coverage for employees is simply cost-prohibitive.
Most business people realize if they provide health coverage for staff, their employees will receive regular health exams, therefore increase their ability to detect and treat conditions in their earliest stages. This means less sick time and reduced disability costs for the employer.
Benefits Vs. Turnover
Employers also realize they are more likely to attract and retain star workers if they are able to offer health insurance to them. Turnover is higher at jobs that have a weak benefits package. And staff turnover is one of the greatest cash-drains to any business or organization.
It is expensive to hire and train new workers, and wait for them to get up-to-speed at their job. Their learning curve also affects every other employee who interacts with the new hire.
There is no doubt businesses that offer health insurance enjoy long-term economic benefits. If a business is able to provide medical benefits for staff, it should. If they cannot, there are still ways the business can help expand access to health services.
Many companies believe they are either able to afford health plans for employees, or they’re not. But there is a middle ground. One way a business can help increase access to health care for their employees is by playing a role in linking workers with low-cost health insurance programs like Medi-Cal and Healthy Families. Employers can also educate their staff about the availability of low-cost health care through San Diego’s community health centers. These centers contract with many health insurance programs aimed at expanding access to low wage workers.
Health Resource Center
Along a similar vein, Assemblywoman Charlene Zettel, R-Poway, recently introduced AB-1547, a bill that would create a business health resource center which offers information and assistance for workers and employers who want to expand access to health care for uninsured , or under-insured , staff.
This San Diego pilot program, which is co-sponsored by state Sens. Dede Alpert, D-San Diego, and Bill Morrow, R-San Juan Capistrano, and Assembly members Patricia Bates, R-Laguna Nigel, Christine Kehoe, D-San Diego, Juan Vargas, D-National City, Howard Wayne, D-San Diego, and Mark Wyland, R-Vista, helps businesses take a more active role in identifying resources for their employees to access health care for themselves and their families.
Local government and community clinics have been working to expand access to health care for 28 years. From our interactions with the business community, we know small businesses have the best interests of their employees at heart, and want to provide health benefits.
Until now, many have felt their hands have been tied. But by working together, we can now expand access to health care through new options in coverage, and links to access care. It’s the right thing to do. And it offers bottom line benefits to business.
Beyer is the president and CEO of San Diego’s Council of Community Clinics.
