Health insurance for startups

What is health insurance for startups?

Providing health insurance for your employees is a no-brainer — even for startups. It's the benefit employees want the most, and it's not hard to see why. Health insurance provides peace of mind, helping your team feel secure and valued. Imagine the relief your employees will feel knowing they don't have to worry about hefty medical bills!

Offering health insurance might seem like a big step for startups, but it's more common than you might think. About 35% of startups with 2–15 employees provide health insurance. This is critical for keeping a happy and productive workforce, as 88% of employees ranked health-related benefits as “very important” or “extremely important” in a 2022 SHRM survey.

Choosing the right health insurance for your small business involves a bit of research. You’ll need to find a balance between cost and coverage to get the best bang for your buck, while ensuring comprehensive care for your team.

But don’t worry, a benefits broker can help simplify the process of finding the right benefits package for your startup.

How do startup employees use health insurance?

Imagine Jane, your marketing specialist, who joined your startup because of its innovative spirit and close-knit team. Jane loves her job, but was initially worried about the lack of stability often associated with startups. One of her biggest concerns was health insurance, especially since she’s a young mother with a family.

With your startup offering health insurance, Jane can now focus on her creative campaigns without the constant stress of potential medical expenses. She uses her health insurance to schedule regular check-ups for her kids, ensuring they stay healthy and catch any potential issues early. This benefit not only gives her peace of mind, but also allows her to bring her best self to work every day.

Then there's Alex, your new software developer, who just moved to the city and is still getting settled. He uses his health insurance to find a local primary care physician and manage his prescriptions. Knowing he has comprehensive health coverage helps Alex concentrate on developing cutting-edge software solutions rather than worrying about healthcare costs.

For Emily, your sales manager, health insurance was a deciding factor in accepting her job offer. She needs regular physical therapy sessions following a sports injury. Thanks to your startup’s health insurance plan, she’s able to attend these sessions without financial strain, helping her recover faster and maintain her productivity at work.

Health insurance is a crucial part of how employees manage their health and well-being. It ensures that they can access necessary medical services — from preventive care to specialized treatments — without the fear of prohibitive costs.

This leads to happier, healthier employees who are more engaged and productive, making health insurance a win-win for both the team and the company.

How does health insurance impact employees at startups?

Having health insurance can be life-changing for employees at startups. A survey from the American Psychological Association found that people with health insurance reported significantly lower stress levels than those without it. That’s not a surprise, considering that most Americans carry medical debt of more than $1,000.

Offering health insurance to your employees will allow them to relax. And the peace of mind of knowing that you can rely on your employer-backed health insurance if something goes wrong is priceless. That’s why 80% of employees would choose additional benefits over a pay raise, according to a Glassdoor survey.

Not having to worry about medical bills will allow your employees to pour their heart and soul into building something great

Offering health insurance also shows employees that their well-being is a priority. It’s a powerful way to say, “We’ve got your back.” This is a great feeling, especially since 86% of American private-sector employees work at organizations that provide employer-sponsored health insurance.

When employees feel cared for, they’re more likely to stay loyal to the company, reducing turnover and fostering a supportive work environment.

Why should startups offer health insurance?

See, health insurance doesn’t just benefit employees — it’s also a smart move for startups. Here’s why offering health insurance, even as a small company, is worth it:

Improves employee retention

Did you know that 56% of Americans with employer-sponsored health benefits consider their health coverage a key factor when deciding whether to stay at their current job?

By offering health insurance, startups can keep their talented team members happy and less likely to jump ship for better benefits elsewhere. It’s like giving your employees a reason to say, “I’m in this for the long haul.”

Boosts employee recruitment

Attracting top talent is critical for any startup, and health insurance can make a big difference. In fact, 60% of workers say that benefits are a key factor when deciding whether to accept a job offer.

So, you're not just providing a benefit. You're showing potential hires that you care about their well-being. It sends a clear message: We value you and your health.

Promotes a healthier, more productive workforce

Healthier employees mean fewer sick days and higher productivity. When employees have access to health insurance, they’re more likely to take care of their health, leading to a more energetic and focused team. It’s a win-win situation where everyone benefits.

Delivers a strong return on investment

Providing health insurance isn’t just good for employees — it’s good for the bottom line, too. Employers can see a return on investment as high as 200-300% on health insurance benefits.

Health insurance helps attract and keep great employees, which reduces turnover costs and boosts overall company performance.

What are the best providers of health insurance for startups?

We got you. Let Nava's benefits experts do the heavy lifting. Contact us here for a personalized vendor recommendation.

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