Competition for talented employees in Latvia continues to grow, and employers are looking for ways to attract and retain the best specialists. Employee health insurance has become one of the most popular benefits that companies offer their staff. It is not only a matter of care for well-being but also a strategic business decision that affects productivity, employee satisfaction and company reputation.

Many business owners still wonder whether health insurance is a justified expense. Yet in practice, companies that invest in employee health tend to see fewer sick days, lower staff turnover and higher team motivation. Moreover, the cost of employee health insurance is recognised as a business expense, which brings tax advantages as well.

What employee health insurance includes and what benefits it offers

Health insurance for businesses typically covers a broad range of services. A basic programme often includes consultations with general practitioners and specialists, diagnostic tests, laboratory analyses, and inpatient treatment. More comprehensive programmes may also cover dental care, vision correction, rehabilitation and preventive health check-ups.

One of the main advantages is faster access to medical services. Employees with a health policy can see specialists and have tests done without long waiting times, which means quicker diagnosis and treatment. As a result, sick leave decreases and work output rises.

Another significant benefit is employee loyalty. Companies that offer health insurance are seen as caring employers, which helps attract new talent and reduce staff turnover. In a labour market where competition for skilled professionals is fierce, this benefit can be the deciding factor in a candidate's choice.

Alongside health insurance, many companies also choose accident insurance for their employees, providing financial protection in case of injury. Together, these two policies create a comprehensive employee protection programme.

Tax advantages are another argument in favour of employee health insurance. The company's expenditure on employee health policies is recognised as a business expense, which can reduce the overall tax burden. This makes health insurance not just a social benefit but also a financially sound solution.

How to choose the right health insurance programme

When selecting health insurance for employees, it is worth considering several factors. First, assess the needs of your company. Smaller businesses with a compact team may find a basic programme covering doctor consultations and diagnostics sufficient. Larger organisations may need a broader programme with additional services.

Second, compare offers from several insurers. Every company has its own approach to programme design, and the differences can be significant in terms of price, the range of services, and the network of medical facilities. A broker can help navigate the options and find the best solution at no extra cost to the business.

Third, pay attention to flexibility. Good health insurance programmes allow you to tailor coverage for different employee groups. For instance, the management team may have a more comprehensive plan while other staff members receive a basic programme. This approach helps optimise the budget while still giving every employee access to healthcare.

Fourth, do not forget about protecting company assets. Alongside employee health, it is important to safeguard the physical assets of the business. Property insurance provides financial protection for the company's premises, equipment and stock, rounding out your overall risk management strategy.

To find the best health insurance offer for your employees, get in touch with the Agento team. We will compare programmes from multiple insurers and help you choose a solution that matches your company's needs at no additional cost. Book your free consultation today!

Frequently Asked Questions

Is employee health insurance mandatory for businesses in Latvia? No, employee health insurance is not mandatory. However, it is one of the most popular voluntary benefits that companies offer to attract and retain specialists.
What does an employee health insurance programme usually include? A basic programme typically includes doctor consultations, diagnostic tests and laboratory analyses. More comprehensive plans may also cover dental care, vision correction, rehabilitation and preventive check-ups.
Are the costs of employee health insurance tax-deductible for businesses? Yes, the costs of employee health insurance are recognised as business expenses. For precise conditions, it is advisable to consult an accountant or tax adviser.
How many employees does a company need to arrange a group health policy? Each insurer has its own requirements. Some offer programmes starting from two employees, while others require a larger group. A broker can help find the option that fits your company size.
Are Agento broker services free for businesses? Yes, Agento broker services are completely free for the client. The broker receives compensation from the insurer. The company only pays for the policy itself.