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It Does Matter: 3 Reasons Why It’s Best for a Company to Have an HMO


Our world as we know it is always evolving. Due to this constant change, a lot of people have to keep up. Large scale companies and enterprises are surely keeping up because the demand for workers is high. Even though there are sufficient people to consider as a proper work force, a lot of individuals still find themselves entrenched in overtime.

Due to the strain brought on by work and the unhealthy surroundings that every one of us has to endure, a lot of us get sick. From simple colds to life-threatening conditions, it’s safe to assume that everyone isn’t safe from experiencing this ordeal. Sooner or later an employee will need to have medical attention and health care. What happens then?

Here is the answer: HMO’s, in a nutshell, is an insurance organization which aims to provide a broad range of medical services from professional health workers and physicians to employees of a company registered with them. Aside from complying with laws and regulations, an enterprise can significantly benefit from having a Health Maintenance Organization.

According to the Health Maintenance Organization Act of 1973, an employer who has 25 or more people in the workforce should give them HMO options. Here are three reasons why a company is better off with a certified HMO.

Having an HMO Boosts Business

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Even though U.S. provisions tell us that a company who has 25 or more employees should offer health insurance, those who don’t meet the numbers should also do so to avail of certain benefits. It’s always a good idea to put value not just in the work that employees bring but putting a value for their well being as well.

Employers who contribute to health insurance premiums are tax-deductible which means lesser taxes to cut from the overall profits of a company. To be more specific, those companies who invest in an HMO plan for their employees can qualify and take advantage of the Small Business Health Care Tax Credit.

HMO not only Attracts Quantity, but it also Attracts Quality

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A lot of people will certainly look for jobs everywhere. It’s important to know that having an HMO is a make or break decision for some of these applicants. According to a study done by the Society for Human Resource Management or SHRM, almost 90% of those who applied for a job said that a company that had an HMO was a big factor for them in applying.

It only does not increase the number of people applying for a job in your business, but it also increases the chance of an individual with high talent or exceptional qualities to do so. Having the best from the rest isn’t such a bad idea considering that the world is in a state of cut-throat competition wherein people who have exceptional talent are rarities

Employee’s Morale Increases Exponentially

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Those businesses that invest in certified HMOs enable their employees to have a sense of importance and belongingness within the workplace. Due to this reason, employees make it a point to work hard to stay with the company for a long time. These people believe that the company treats them more than just workers but partners as well.

Due to this increase in morale, performance increases, which in turn, makes more productivity within the company. Another benefit that raises confidence are the extensive services that are openly available and provided by HMO’s. These services include free screenings, processing of meditouch costs, health lectures, etc.

Having a good HMO also decreases the company’s loss due to most employees who call in sick for work. According to the CDC or Centers for Disease Control and Prevention, an estimated $226 billion in losses was due to these absences. There have also been links confirming that those who missed work did not have any HMO’s or coverage at all.

A good reason why employees work hard when there is an HMO is that the beneficiaries aren’t solely for them, but for their immediate family members too. HMO’s in a way is the company’s way of putting a value on their workers.

This gesture says a lot on how a company treats their employees. These individuals, in turn, do all they can to stay in an environment that not only takes care of them but their family as well.


HMO is indeed a good way for companies to take care of their employees. Whether a requirement or not, it is highly advisable for businesses, regardless of the number of staff to provide an HMO and health insurance. Investing in a certified HMO is more beneficial in the long run due to the benefits that the government gives to those who invest.

Employees would also feel elated that their company has an HMO. For them, this means that the company is giving them the importance and treats them more than just ordinary workers. In fact, an HMO increases an employee’s morale and productivity. More importantly, an HMO reduces the chances of an employee from calling in sick.



Nancy is a young, full of life lady who joined the team shortly after the BelleNews site started to run. She is focused on bringing up to light all the latest news from the technology industry. In her opinion the hi-tech expresses the humanity intellectual level. Nancy is an active person; she enjoys sports and delights herself in doing gardening in her spare time, as well as reading, always searching for new topics for her articles.