Sponsored By Canopy Health

As they can add significant annual costs to a burgeoning company’s operating expenses, San Francisco-based small business owners are wise to be wary of offering their employees family medical coverage. However, there are some very good reasons for making a family health care plan part of your company’s standard benefits package.

Family Health Coverage Is a Valuable Recruitment Tool

A recent report by Bankrate noted that in 2018, nearly half of United States employers plan on reducing the amount of health care coverage they offer to their employees’ spouses and dependents. The report also mentioned that large corporations plan on completely eliminating coverage for spouses that have health coverage available through their own employers.

Because of this wide-scale change in the job market, small businesses may find themselves at an advantage when recruiting. While less established companies might not be able to match the salary offered by large corporations, they could appeal to highly educated and experienced workers by offering family medical benefits.

Family Health Coverage Improves Employee Retention

In addition to attracting new hires, offering family benefits can also help small companies retain their existing staff. A recent metadata study conducted by Glassdoor found that the No. 1 driver of employee satisfaction among their user base is quality health insurance. It was rated as significantly more important than 401(k) plans, paid time off, maternity and paternity leave, and employee discounts.

Even if your company isn’t in a financial position to offer meaningful raises, family health care may serve as enough of an incentive to keep your best workers on staff for the long haul. And to again put the costs of family benefits in perspective, companies typically spend $19,000 replacing just one mid-level employee.

Optimizes Productivity & Engagement

Lastly, offering your employees medical benefits for their spouses and children can be helpful in optimizing productivity and engagement. Workers without family health coverage spend a lot of time worrying about how to cope with unexpected medical expenses. One study found that when relieved of that particular burden, 66 percent of employees are better able to concentrate on their work. As it is estimated that U.S. industry loses $550 billion each year to employee disengagement, small business owners have a considerable incentive to remove any sources of distraction and resentment among their workforce.

While it might sound counterintuitive, the reality is the cost of not providing family health care benefits can legitimately outweigh their perceived expense.


Canopy Health is a community of caregivers creating an integrated healthcare experience where quality care and coverage are provided by an alliance of top caregivers throughout the Bay Area. They offer refreshingly clear, human care that is achieved by making each unique member’s journey predictable, transparent, and cost-effective.

For more tips and inspiration for small business owners, visit CBS Small Business Pulse San Francisco.


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