1. Cost-effectiveness is the major reason why people prefer group health insurance because most risks are covered by multiple workers; most insurance providers offer lesser premium than if the cover were bought separately by the same number of individuals. And most organizations, before paying employees, already cater for that portion in addition to charging the remainder directly to their employees.
2. Attraction of Talent: Providing health insurance can make a small business more attractive to potential employees. Many job seekers choose a company based on the consideration of health benefits. Having a group health plan gives small businesses a competitive advantage in attraction of skilled workers.