Businesses with more than 50 full-time employees are still required to offer health insurance or face penalties under the Affordable Care Act (ACA). For 2025, the penalty for not offering coverage (Penalty A) is $2,900 annually per full-time employee after the first 30 employees. If coverage is offered but is either unaffordable or does not meet minimum value requirements (Penalty B), the penalty is $4,350 annually per affected employee. Offering ACA-compliant Minimum Essential Coverage (MEC) not only avoids penalties but can also save businesses significant amounts—over $180 million annually across industries.
As an employer, you already understand the financial and operational benefits of providing health insurance. But the advantages go beyond compliance and cost savings.
Why Offer Health Insurance?
Employees with access to health insurance are healthier, happier, and more productive. Here’s why:
- Improved Access to Preventative Care: Employees gain resources like annual physicals, screenings, immunizations, and lab work, helping them avoid serious illnesses.
- Reduced Stress: Affordable healthcare alleviates concerns about medical bills, allowing employees to focus more on their work.
- Better Attendance: Healthy employees miss fewer workdays due to untreated conditions.
- Higher Retention and Engagement: Providing health benefits fosters a supportive workplace culture, reducing turnover and increasing employee satisfaction.
How to Encourage Employees to Enroll in Health Insurance
While the benefits of offering health insurance are clear, getting employees to sign up can sometimes be a challenge. Here are updated strategies to simplify and streamline the process in 2025:
1. Distribute a One-Pager
Create a concise, easy-to-read document outlining the key benefits of your health insurance plan. Include answers to frequently asked questions and a clear call to action. Make it available both digitally and as a physical handout.
- Include visuals like charts or infographics to highlight cost savings and health benefits.
- Use QR codes for quick access to enrollment portals.
2. Use Interactive Pamphlets
Provide employees with pamphlets that combine essential information with interactive elements like QR codes or links to video explainers. Highlight the practical benefits of your health insurance plans and keep the tone conversational.
3. Assign a Knowledgeable Point of Contact
Designate a person within your company or from your insurance broker to answer employee questions directly. Ensure they’re equipped to address concerns about cost, coverage, and specific needs.
4. Leverage Digital Campaigns
- Text Messages: With people checking their phones hundreds of times a day, text reminders can be a simple and effective way to encourage enrollment.
- Email Campaigns: Use visually appealing email templates with links to resources like enrollment forms or videos explaining the benefits of your plan.
5. Highlight Benefits on Pay Stubs
Pay stubs are a guaranteed touchpoint with employees. Add a simple note encouraging them to enroll and compare affordability using their pay information.
6. Incorporate Health Benefits into Onboarding
For new hires, make health insurance a key part of the onboarding process. Provide clear, step-by-step instructions during orientation and ensure they can enroll quickly and easily.
7. Use Social Proof
Share testimonials from current employees who have benefited from the health insurance plan. Personal stories can be a compelling way to motivate others to sign up.
For more on why you should encourage preventative care in your employee workforce, read on. Then, look at our benefits page to see which affordable MEC plans work best for your company. Our team of reliable expert brokers makes compliance with ACA easy and affordable.
