Employee Health Benefits

Definition - What does Employee Health Benefits mean?

Employee health benefits refer to the non-cash compensation an employer provides an employee in addition to their normal salary for the purpose of protecting the employee’s health and welfare. It is also a way to help retain employees in a company and reduce turnover.

Insuranceopedia explains Employee Health Benefits

Employee health benefits may come in the form of health insurance, an employee assistance program, health screenings, employee health care centers, and health care seminars. Prior to the Affordable Care Act, employee health insurance was not mandatory among companies, except in the State of Hawaii.

Options for health insurance include a traditional indemnity plan, managed care through a Health Maintenance Organization or Preferred Provider Organization, self-insurance, and Archer Medical Savings Account for companies with 50 employees or less.

Moreover, the Family and Medical Leave Act requires employers to offer their employees up to 12 weeks' leave to seek medical care in case they are suffering from a serious health condition. The Act guarantees that after 12 weeks of unpaid leave, the employee shall be reinstated in their former position or an equivalent role.

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