health insurance companies for small business owners

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7 Best Health Insurance for Small Business Owners

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The largest insurance provider in America

$7,00 individual/$14,000 family

a (Excellent)

Partnered with more than 1.7 million doctors and hospitals

$8,700 individual/$17,400 family

a+ (Excellent)

Telehealth options allow patients to meet with there doctor online

$6,450 individual/$12,900 family

0.5 (very low)

bbb+ (Good0

Preventative care available with no out-of-pocket expenses

1.9 (very high)

A- (Excellent)

The largest managed care network in America

$6,900 individual/$13,800 family)

0.3 (very low)

A+ (Excellent)

Eight states and Washington D.C.

Health insurance helps individuals pay for routine check-ups, preventative care and medical emergencies. Health benefits consistently top the list of desired job perks, and workers commonly rely on employer-provided coverage for themselves as well as their families.

Many small business owners provide their employees with group health insurance as a way to attract and retain talent. If you're looking for a health insurance provider for your small business, navigating the sheer number of plans, policies and industry jargon may seem daunting at first blush.

To help you narrow down your options, we've compiled a list of the top best health insurance plans for small business owners.

And if you don't already have coverage, you may also want to check out our list of best business insurance companies to find the right provider and policy for your needs.

Our Top Picks for the Best Health Insurance for Small Business Owners

• United Healthcare — Largest Network of Providers
• Blue Cross Blue Shield — Best For Customer Service
• Elevance — Best Regional Networks
• Aetna — Best Preventative Care
• Kaiser Permanente — Best Prices
• Humana — Best Customizable Plans
• Cigna — Best for 24/7 Customer Service

Best Health Insurance for Small Business Owners Reviews

We've assessed the following business health insurance plans according to a number of sought-after features. Continue reading to learn more about the best health insurance plans for small business owners.

Largest Network of Providers: UnitedHealthcare

Why we chose it: UnitedHealthcare tops our list as the best overall small business health insurance for employees. It's the largest insurance provider in the United States by membership, with approximately 70 million members. United Healthcare partners with over 1.3 million doctors, other healthcare professionals, and 6,500 hospitals and care facilities. Aside from its robust network and availability in all fifty states, it scores points for its comprehensive range of services and plans, including options for part-time and seasonal employees.

• An extensive network of healthcare providers
• Benefit options for part-time and seasonal employees
• Virtual therapy and specialty healthcare are available
• A diverse suite of products and services including helpful in-app services
• Legal issues over wrongfully denied claims
• Does not offer a platinum plan health insurance policy

United Healthcare offers a variety of plan types for small businesses, including HMO, PPO, EPO and POS plans. It also provides discounts to customers who bundle their health insurance with dental and vision coverage and publishes helpful resources such as free fitness, nutrition and self-care guides.

Besides offering a broad range of plan options, United Healthcare is an industry leader in technological integration. It offers convenient in-app services such as claim filing and mental health services (available with select small business plans via a dedicated app), features that can save prospective customers both time and effort.

Unlike some of the other options on our list, United Healthcare does not offer a platinum plan, which generally features more comprehensive coverage than other tiers. Additionally, the company paid out $91 million to the California state insurance commissioner's office over wrongfully denied claims in 2019. While the lawsuit involved PacifiCare, a UHC subsidiary acquired in 2005, prospective customers should know the company isn't infallible and are advised to read customer reviews before making a decision.

Best for Customer Service: Blue Cross Blue Shield

Why we chose it: Blue Cross Blue Shield (BCBS) made our list due to its expansive coverage network and high consumer service ratings. BCBS covers over 106 million Americans and is accepted by over 95% of physicians and 96% of hospitals. It also ranked highly across multiple regions in J.D. Power's 2022 U.S. Commercial Member Health Plan Study .

• Offers workplace wellness plans in many locations
• Highly rated by small businesses
• Operates in all 50 states and some international locations
• Comprehensive healthcare offerings
• Plans vary by location
• Higher than average healthcare premiums
• Some plans have high deductibles

Like many of the other health insurance providers on our list, BCBS offers a wide array of health insurance options, including PPOs, HMOs and high-deductible insurance plans. BCBS is actually made up of 34 independent, community-based companies operating under one banner. This means policies and coverage options may vary from company to company. Contact your regional BCBS provider to verify which services and coverage options are available near you.

While BCBS has a well-earned reputation for quality service and offerings, that quality comes at a price — online reviews suggest BCBS is more expensive than equivalent plan options offered by other competitors on our list. Additionally, some plans also have deductibles that exceed the industry standard, meaning consumers will pay more out of pocket when accessing medical services.

Ultimately, BCBS is a solid option for any small business owner looking to provide their employees with rock-solid coverage and a wide array of options. Nevertheless, double-check your local affiliate's coverage options and customer service ratings before you select BCBS for your small business's healthcare needs.

Best Regional Network: Elevance

Why we chose it: Only available in 14 states, Elevance (formerly Anthem, Inc.) is a big player in the regions in which it is active due largely to its reasonably priced plans and extensive network of healthcare providers. This means employees have more options when choosing doctors and are less likely to have to go out of network to obtain treatment. Numerous online sources also suggest that consumers will pay less for coverage through Elevance .

• One of the most affordable options on our list as determined by reputable online review sources and quote generators
• Numerous plan types available to members
• An extensive network of healthcare partners
• High rate of coverage denials
• Low customer satisfaction ratings
• Only available in 14 states

Online reviews suggest Elevance is a solid choice for businesses looking to provide their employees with an extensive network of medical providers at a fair price. However, it's important to note that there have been accusations of poor customer service and high coverage denial rates against Elevance, which span several years.

From 2014 to 2019, California's Department of Managed Health Care levied $9.6 million in fines on Elevance Blue Cross, a local subsidiary, largely due to the company's failure to adequately handle customer grievances. Elevance also came under investigation by the Maine Bureau of Insurance earlier this year for allegations of underpayment, claim denials and payment delays.

Before selecting Elevance for your insurance needs, look up reviews of your local subsidiary. Elevance is available in California, Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri, Nevada, New Hampshire, New York, Ohio, Virginia and Wisconsin.

Best for Preventive Care: Aetna

Why we chose it: Aetna made our list for its emphasis on preventative care options. In recent years, Aetna has pivoted strongly towards Value-Based Care (VBC). This healthcare philosophy emphasizes the importance of proactive measures such as preventative treatments and healthy lifestyle choices. All plans integrate aspects of VBC that incentivize plan participants to engage in healthy life choices such as exercising, maintaining a proper diet and quitting smoking.

• Friendly user experience with online, in-app, and over-the-phone service available
• Strong emphasis on preventative measures including value-based care
• Affordable prices
• Higher than average complaint rate
• History of wrongfully denying claims

Active in only 16 states, Aetna isn't quite as large as some heavy hitters on our list. However, with 169 years of history behind it, Aetna brings a considerable amount of institutional experience. Numerous online sources also report that the company's prices are affordable when compared to other providers.

According to the National Association of Insurance Commissioners, Aetna has a complaint index of 1.94. That means it has received roughly twice as many complaints as the average insurance company over the same period.

Additionally, Aetna sustained a $500,000 fine in 2020 for wrongfully denying many emergency room claims in California. While troubling, it’s important to note that many large health insurance providers sustain high complaint levels and fines. Proceed with caution and further research what people say about Aetna in your state or region.

Best Prices: Kaiser Permanente

Why we chose it: Kaiser Permanente is the cheapest health insurance option for small business owners that we found in our search. It also differs from the other providers in another important way. As a closed group, Kaiser Permanente doesn't just provide health insurance, it also runs a system of private hospitals accessible only to Kaiser Permanente members.

• Low prices for equivalent plan options
• Wide range of available plans
• Highly ranked for quality
• Only available in eight states and Washington D.C.
• Closed group structure can limit care options

With 12.6 million members in eight states (Hawaii, California, Colorado, Georgia, Maryland, Oregon, Virginia and Washington) and the District of Columbia, Kaiser Permanente is a relatively small outfit. Yet its unique business model makes it ideal for businesses looking to provide their employees with high-quality medical care at affordable prices.

Kaiser’s closed system model means members receive lower prices for medical services at its private facilities. And like Aetna, it emphasizes preventative care to reduce medical costs and keep its members healthy. Employers can also choose from plans offering a comprehensive range of options including gold, silver, and bronze plans. Within these pricing tiers, Kaiser Permanente offers the choice of copayment HMOs, deductible HMOs and HRA and HSA-qualified plans.

While Kaiser Permanente has earned consistently high rankings for quality service from industry groups and review services such as the U.S. News Health, it does have some drawbacks. Due to its limited geographic reach and restrictive network of medical care providers, it's not a great match for businesses that hire nationwide.

Best for Customizable Plans: Humana

Why we chose it: Humana offers small business owners the best health insurance package. Highly rated for overall quality of coverage and with a below-average complaint index, Humana really shines when it comes to its personalized insurance plans.

• Low customer complaint volume
• Variety of plan options
• Provides coverage in 44 states
• Plans are on the pricier side
• Received a $630,000 fine in 2021 due to numerous insurance infractions

Business owners can select from a variety of plans, including HMOs and PPOs. Humana offers greater flexibility than other insurers since customers can customize their plans with popular add-ons such as dental, vision and hearing insurance.

Humana is America's fifth-largest health insurance company, with over 20 million members. While not outrageously expensive, Humana's prices tend toward the higher end of the spectrum. Quotes obtained from Humana’s website and numerous online review services show its prices trend slightly above the competition.

Last year, North Carolina's insurance department levied a $630,000 fine against Humana for various infractions, including unethical claims practices and poor policyholder treatment. The department also forced Humana to pay members an additional $227,206. While troublesome, it’s important to remember that many insurance providers run afoul of regulatory agencies. As a consumer, it’s important to do your due diligence when selecting an insurance provider.

Best for 24/7 Customer Service: Cigna

Why we chose it: Cigna made its way onto our list because of the superior quality of its customer service as determined through online reviews. In addition to providing many of the features that we've seen elsewhere, such as dental and vision add-ons, Cigna offers live 24-hour customer support 365 days a year.

• Good customer reviews online
• Offers dental and vision coverage
• Multiple group plan options
• Only available in 12 states
• Expensive monthly premiums

Cigna offers multiple group health options including PPO, HMO and Open Access plans. Plans include free access to wellness programs and savings and spending plans. Cigna also maintains relationships with more than 1.5 million healthcare providers worldwide and over 99% of U.S. pharmacies.

Cigna holds an A- rating with the BBB and a 4.3/5 rating on Trustpilot with 1,551 total reviews. Customers complain about being denied coverage for medically necessary procedures and poor customer service.

Cigna is active in 12 states including Arizona, California, Colorado, Connecticut, Florida, Georgia, Maryland, Missouri, North Carolina, South Carolina, Tennessee and Texas.

Other companies we considered

The following companies provide quality health insurance plans. However, they failed to make our list because they did not excel in one or more of our core criteria.

Founded in 2012 , Oscar is a relative newcomer to the insurance industry. With a stated goal of "humanizing healthcare through technology," Oscar has grown rapidly and now services over 529,000 members across 18 states. Still in its infancy, Oscar failed to make our list due to its limited out-of-network provider availability and lack of dental or vision plans.

• Basic plans come with free general doctor visits, generic drugs and preventative care
• Dedicated concierge team readily available
• Strong focus on data analytics to improve patient outcomes
• Does not offer dental or vision insurance
• High premiums
• Customer complaints regarding billing and scheduling issues

Guidewell is the parent company to a broad family of health insurance providers including Florida Blue Cross, Blue Shield, and Puerto Rico-based Triple S-Management. Guidewell failed to make our list due to its small network and coverage area.

• Numerous in-network healthcare provider options
• Offers vision and dental insurance
• Supplemental coverage for accidents, critical illness and hospital confinement
• Regional coverage limited to Florida and Puerto Rico
• Plans and coverage may vary between companies within the Guidewell family

Health Insurance for Small Business Owners Guide

We compiled the following guide to help you better understand health insurance for small businesses, how it works and what factors you should consider when selecting a small business plan.

What is health insurance for small business owners?

When we're talking about health insurance for small business owners, we're referring to employer-sponsored healthcare coverage. The cost of this benefit is typically split between the business and the employee.

While small business owners are not legally obligated to provide healthcare for their employees, many choose to do so as a way to attract and retain talent. And many workers prefer to receive part of their compensation in employer-covered health insurance premiums because these are not subject to federal income and payroll taxes.

How does health insurance for small business owners work?

A different set of tax incentives apply to certain small businesses. Small business owners must have at least one full-time employee who is not a spouse or family member to purchase group health insurance.

Additionally, employers who offer health insurance must offer it to all full-time employees (defined as any employee working 30 hours a week or more). Health insurance cannot be limited to certain individuals, such as managers or highly skilled workers.

In order to offer employer-provided health insurance, 70% of your uninsured, full-time employees must opt-in to the plan you're offering. However, this 70% rule does not apply between November 15th and December 15th of any given year.

Small business owners can easily compare health insurance plans through the Small Business Health Options Program (SHOP), a government-run marketplace created as part of the Affordable Care Act. They can also research costs and coverage by contacting individual companies or health insurance brokerages.

How to pick group health insurance for small business owners

There are several important factors to consider when selecting a health insurance plan for your business.

As you browse through available plans, you'll want to balance price, coverage and out-of-network flexibility to find the health insurance that best fits the needs of your business and employees.

Benefit Design

Benefit design refers to the rules that govern the coverage, provider and service options made available to the insured, including cost-sharing measures such as copays, deductibles and coinsurance.

Because employers typically pay the lion's share of their employees' health insurance premiums, workers may access healthcare services for superfluous reasons. Good benefits design will incentivize users to access essential services while discouraging wasteful service usage.

Health insurance premiums are monthly payments made in exchange for healthcare coverage. Businesses and workers typically share the cost of employer-provided health insurance premiums. Employers who pay 50% or more of the total cost of their employees' premiums may qualify for the small business healthcare tax credit.

As a business owner, you'll need to balance monthly premiums against coverage limitations and deductibles. Lower premiums result in reduced coverage and higher deductibles for employees. You may want to solicit employee feedback or research industry-standard health plans before making your selection.

While employers must cover at least 50% of their employee's health insurance costs to qualify for the small business healthcare tax credit, many choose to pay an even larger share as part of their workplace incentive program.

A 2020 survey found the average small business covered roughly 70% of its workers' health insurance premium costs. You may want to provide strong healthcare subsidies to attract and retain top talent for your business.

Network providers

Some health insurance plans require or incentivize users to go to a preselected group of medical care providers. Insurance companies negotiate lower fees for in-network medical care providers, and in exchange, the providers receive a stable customer base. In-network care may include primary care practitioners, dentists, psychiatrists, optometrists and other medical specialists.

Four types of health insurance plans make use of network providers: exclusive provider organizations (EPOs), health maintenance organizations (HMOs), preferred provider organizations (PPOs) and point-of-service plans (POSs).

HMOs and EPOs require participants to seek help exclusively through in-network providers, while PPOs and POSs provide more flexibility by allowing plan members to select out-of-network healthcare providers, albeit at a higher cost.

Types of plans

Benefits define and differentiate healthcare plans. Most companies offer five benefit tiers: bronze, silver, gold, platinum and catastrophic. Bronze plans are the least expensive while offering fewer benefits, and platinum plans are the most expensive while offering the highest level of coverage.

Individuals under the age of thirty (with some exceptions) can purchase a catastrophic plan, which provides bronze-level coverage with lower monthly premiums in exchange for very high deductibles. Individuals choosing catastrophic coverage plans may want to open a health savings account.

Some insurance plans rely on a network of physicians and healthcare providers. These four plan types are available through most major insurers.

• Health Maintenance Organization (HMO): HMOs require individuals to select a primary care physician (PCP) for their general needs. PCPs act as gatekeepers by issuing referrals to in-network specialists for more complex health problems. HMOs only allow their members to use in-network service providers. While more restrictive than other plan types, HMOs are typically less expensive.
• Exclusive Provider Organization (EPO): Like HMOs, EPOs won't cover out-of-network services except in certain emergency situations. However, EPOs do not require their members to see a PCP. This gives members greater freedom since they don't need to consult with their primary physician before seeking help from a specialist.
• Preferred Provider Organization (PPO): PPOs are more flexible than HMOs. However, that added flexibility comes at a cost. With a PPO you can choose between in- and out-of-network providers, although you can expect to pay more for out-of-network services. In addition, baseline premiums and deductibles are typically higher than what you'll find in HMOs. Not all PPO plans require members to choose a PCP.
• Point of Service Plan (POS): This plan type lies somewhere between an HMO and a PPO. Plan members must select a PCP who will take responsibility for issuing referrals to specialists. POS members can access out-of-network services, albeit on a limited basis. Out-of-network services will typically require greater out-of-pocket expenses and may provide less coverage than an in-network equivalent.

Deductibles and copays

When you enroll in coverage, your health insurance may require you to pay a predetermined amount of the total cost out of pocket before your health insurance kicks in. This is known as an insurance deductible. For example, if your deductible is $1,000 and your total medical bill is $3,000, you will pay $1,000 out of pocket before your insurance kicks in.

You and your insurer will split the remaining $2,000 according to your coinsurance agreement. If you have a 20% coinsurance, then you will pay $400 of the $2,000 and your insurer will pay the remaining $1,600.

Deductibles help keep healthcare premiums down by reducing the insurer's payment share of financial responsibility while discouraging plan members from seeking care for minor health concerns.

When choosing an insurance plan, you will be given the option of selecting from a range of deductibles. Lower deductibles mean higher monthly premiums while higher deductibles mean lower monthly premiums. If you don't anticipate using your plan much, you may want to opt for a higher deductible. However, a plan with a lower deductible will likely benefit you in the long run if you or a loved one suffers from a chronic illness since you will use your insurance more frequently.

Unlike deductibles, copays consist of a flat fee paid by the patient upon accessing certain types of medical care. Copays typically range from tens to hundreds of dollars. Insurance providers charge copays for various routine actions such as seeing your primary care physician or getting a prescription filled. Some companies may charge copays on top of your deductible.

Best Health Insurance for Small Business Owners FAQ

How much does health insurance cost for small business owners, how do i get health insurance for a small business, how we chose the best health insurance for small business owners.

During our selection process, we used the following five factors to inform our picks for the best health insurance coverage for small business owners.

Reviews and reputation

For each selection on our list, we took a careful look at publicly-available reviews, including those published by industry-leading organizations. We also looked through popular review forums and researched recent regulatory actions.

While all health insurance companies receive complaints, some get more than others. To better understand which companies receive a disproportionate number of complaints, we looked at their National Association of Insurance Commissioners (NAIC) complaint index.

NAIC calculates the complaint index by dividing the company's share of complaints in the U.S. market by its share of premiums. A ratio above one means the company has received a higher number of complaints than its competitors.

Insurance coverage refers to the total cost that an insurance policy will cover. Generally speaking, the higher the coverage limit the better. However, higher coverage limits often mean higher premiums, so it's important to strike a balance between the two.

When determining which companies to put on our list, we picked businesses that offered a broad range of coverage options, making the plans offered more likely to meet the needs of any given business owner.

Availability

While some insurance companies are active nationwide, many are confined to certain states or regions. Insurance companies must comply with various licensing and regulatory rules and procedures before selling insurance in a given state, making expansion an expensive and time-consuming prospect.

For our list, we looked at companies with a sizable geographic footprint, although we made some exceptions for those that offer superior coverage, service or prices.

Insurance plans can vary dramatically by the different features made available to plan holders. Popular add-ons like telehealth access, preventative care and mental health service coverage can transform a plan from good to great.

Summary of Money's Best Health Insurance for Small Business Owners of 2023

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• SHOP Marketplace

Get health insurance for your small business

Health insurance is a critical factor for small businesses to help retain and recruit employees and sustain productivity and satisfaction. UnitedHealthcare offers a range of group health insurance options designed to help your small business save money and support your employees’ health and well-being.

Request a quote for your small business (2-50 employees)

Simply complete a quick form to get started with a quote for your small business. A UnitedHealthcare representative will get in touch and work with you to help find group health insurance options that best fit your business.

View plans or request a quote (2-50 employees)

To get more details on health insurance options for your small business, click on your state below. In markets where the Small Business Store is available, 1 you will be directed there. In markets where the Small Business Store is not available, you can request a quote from UnitedHealthcare.

• Connecticut
• District of Columbia
• Florida (North)
• Florida (South)
• Massachusetts
• Mississippi
• New Hampshire
• New York (upstate)
• North Carolina
• North Dakota
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• U.S. Virgin Islands
• West Virginia
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For companies with 51 or more employees

Find the right medical plans for your employees and your business, plus supplemental plans for dental, vision, disability and more.

Explore products and solutions for small businesses

There's not just one way we work to help small businesses like yours. By offering benefits packages designed to improve employee experience and help employers manage cost, there's a number of products and solutions that may be right for your business.

Explore a range of group health plans and network options.

Discover how integrated pharmacy benefits from OptumRx may help lower costs for you and your employees.

Enhance your employees’ specialty benefits package with vision, dental, financial protection plans and more.

See how we are guiding employees to the behavioral care they need.

Get more health plan resources

Find information to help you and your employees get the most from their health benefits.

Did you know?

UnitedHealthcare’s employer-sponsored insurance plans serve groups that fall into three categories: Small Group plans refer to employers with up to 100 employees; Key Accounts is for employers with 101 to 5,000 employees; and National Accounts serves employers with more than 5,000 employees.

Building healthier workplaces together

A small business with about 40 employees shares why working with UnitedHealthcare has enabled them to provide a health plan that delivers on what matters to their employees.

Video transcript

Instrumental music plays throughout. Three white lines curl across a blue background. Blue text centers a white screen.

ONSCREEN TEXT:          Building healthier workplaces together

Upbeat music plays to a montage of shots from employees working in warehouse, a forklift, a man outside, seed being filled into a bag, a white truck driving through plains, and a blonde-haired woman smiling.

The screen dissolves into white with the blue United U logo appearing in the center.

Inspirational music begins playing as we see an aerial view of the Albert Lea Seed Plant. The scene switches to an aerial view of a baseball field, then to the Albert Lea Seed Plant entrance. The view moves inside where Matt Helgeson speaks to a circle of employees in the warehouse.

MATT: Okay, good morning, everybody.

We've got trucks at the dock today, so it's going to be a busy Monday.

We've got trucks on the scale as well, so we'll need a couple samples pulled up.

The screen shows Matt being interviewed before a white background.

MATT: Albert Lea Seed has been in business for almost 100 years,

A blue bar slides into the bottom left of the screen, containing white text.

ONSCREEN TEXT:          Matt Helgeson Owner, Albert Lea Seed

MATT: and today our focus is distributing seed throughout the Upper Midwest and throughout the country.

A white text box with the Albert Lea Seed logo scrolls down from the top left of the screen.

ONSCREEN TEXT:          Organization Albert Lea Seed 

Location Albert Lea, MN

Industry Agriculture

Established 1923

Number of employees 40

Music continues. We see Matt checking seed and then a man pouring seed into a bag in a warehouse.

Matt: One of our key focuses is distributing an organic and non-GMO seed to farmers who are under those production methods.

We see Matt and another man examining seeds in a field.

MATT: Many of our seeds that we offer here are produced by local farmers.

Those seeds include soybeans especially, and also small grains; things like oats, wheat, barley, and rye.

We see palettes of bags of organic grain seed and barley. Scene cuts to a white truck driving on a dirt road in the fields.

MATT: Those relationships with our customers matter to us, and they matter to the farmer, and so we try to offer honest advice and seeds in which the quality we believe is truly there.

Matt gets out of truck and shakes hands with another man in a field. Matt and a man inspecting crop.

Nicole Hansen begins speaking. We see the Albert Lea Seed building sign, then Nicole speaking to employees in the warehouse, handing out open enrollment booklets. A white UnitedHealthcare U logo is at the bottom right corner of the screen

NICOLE: Good morning, everyone. I'm going to briefly talk to you guys this morning about open enrollment for 2022. I'm going to hand out some booklets for everyone.

The screen changes to Nicole Hansen interviewing before a white background. A blue bar slides into the bottom left of the screen, containing white text.

ONSCREEN TEXT:        Nicole Hansen Human Resources, Albert Lea Seed

NICOLE: A lot of people are surprised to hear that the Albert Lea Seed House even offers benefits just because we're such a small employer and we're not actually required to offer any type of health insurance.

Nicole continues speaking while we see a montage of a forklift in the warehouse.

NICOLE: We want the best for our staff and for their families. We take a lot of pride in not having high turnover rates, and that's because of how we treat our employees and how comfortable they feel with us.

The screen switches back to Nicole in front of a white background.

NICOLE: We meet with our broker every year, the controller and I do, and we're always looking at a plan that's going to impact our staff in the most positive way.

Nicole continues speaking while we see a montage of employees working with seed in the warehouse.

NICOLE: Which one is going to cover them is depending on what's going on in their life and make a positive impact on them and their families.

Matt begins speaking and we see a montage of workers in the warehouse.

Matt: The health of our employees is critically important.

The screen changes to Matt being interviewed in front of a white background.

MATT: The UnitedHealthcare plan has been very beneficial for all of our employees here.

While Matt is speaking, we now see a montage of employees at work and the white UnitedHealthcare U logo in the bottom right corner.

MATT: The incentives for employees to improve their health and have more of a preventative concept is really important.

Nicole is speaking before a white background.

NICOLE: The incentive program that's offered through UnitedHealthcare is a huge success with all of my staff here.

While she is speaking, we see Nicole and Matt walking and talking outside.

NICOLE: They love the incentive for them to get up and get moving. It gives them a great feeling, and they love the extra cash flow into their HSA. These plans that we offer through UnitedHealthcare are very important to us because happier employees are more productive employees, which are healthier employees.

The screen is changing back to Nicole speaking in front of a white background

NICOLE: And that's exactly what we strive for here at the Albert Lea Seed House.

Blue text flashes quickly on screen, centering a white background.

ONSCREEN TEXT:        There

ONSCREEN TEXT:        for

ONSCREEN TEXT:        what

ONSCREEN TEXT:        matters

A blue u-shaped logo appears against a white background, followed by text.

ONSCREEN TEXT:        UnitedHealthcare

Small black text runs along the bottom of the screen.

ONSCREEN TEXT:        All trademarks are property of their respective owners.

ONSCREEN TEXT:        Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates.

ONSCREEN TEXT:        © 2023 United HealthCare Services, Inc. All Rights Reserved. 23-2747306

ONSCREEN TEXT:        EI232767439 11/23

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• Small Business

Healthcare Options for Small Businesses: A Comprehensive Guide

Offering health insurance as a small business owner can yield tangible and intangible benefits. A good healthcare plan can be a strong incentive when attempting to attract top talent to your business. Employees may feel a deeper sense of job satisfaction in knowing they have healthcare benefits if they need to use them. Employers can also benefit in the form of tax breaks.

The challenge is finding the right healthcare option to offer to your employees.

Key Takeaways

• Small businesses face challenges in providing good, affordable healthcare coverage to their employees.
• The Small Business Health Options Program (SHOP) helps small businesses provide health coverage and offers benefits such as plan comparisons.
• Small businesses should consider factors like cost, coverage options, and employee needs when selecting a health insurance plan.
• Employer-sponsored insurance plans cater to the needs of small businesses and offer various benefits and considerations.
• Offering healthcare benefits can help you attract and retain talented employees, improve their satisfaction and productivity, and contribute to your business success.

Are Small Businesses Required to Offer Health Insurance?

Under provisions of the Employer Mandate of the Affordable Care Act (ACA) , businesses are required to offer health insurance only if they have 50 or more full-time employees or full-time equivalent (FTE) employees. If you meet that standard, you’re considered a large employer for Internal Revenue Service (IRS) purposes.

• A full-time employee is someone who averages at least 30 hours of service per week during the calendar month, or at least 130 hours during the calendar month.
• Full-time equivalent employees refer to a group of workers who may not all be employed full-time, but whose working hours combined are equivalent to a full-time employee.

Special rules for determining full-time employee status apply to businesses that hire seasonal workers.  

Independent contractors are not considered employees, so the ACA rules for health insurance don’t apply to them. A sole proprietor running a small business may be subject to the rules, but only if they meet the 50 or more full-time employees or FTE guidelines. Self-employed business owners with no employees can enroll in healthcare plans through the federal marketplace if they need coverage for themselves or their family members.  

How Small Business Health Insurance Works

Small businesses that are required to offer health insurance, or that voluntarily choose to do so, are obligated to offer coverage to 95% of full-time employees and their eligible family members. Again, a full-time employee is defined by thresholds of 30 hours per week or 130 hours per month. Businesses would need to have at least one eligible full-time employee to offer coverage.

Coverage must meet two standards to be aligned with ACA requirements:

• Minimum value . An employer-sponsored plan is determined to offer minimum value if it covers at least 60% of the total allowed cost of care for covered employees, and if its benefits include substantial coverage of physician and inpatient hospital services.
• Affordability . For 2024, workplace health insurance is deemed affordable if employees’ share of monthly premiums in the lowest-cost plan offered is less than 8.39% of household income .

Affordability is based on the premium that would cover all individuals in the employee’s household. Income is calculated based on the earnings of everyone in the household who is required to file a tax return. To qualify for a federal tax credit, employers must pay at least 50% of health insurance premiums for covered employees. Employers can, however, opt to pay a larger share of the premiums so that employees have less to pay out of pocket.

Businesses are required to offer health insurance to employees when they become eligible for it. Employers can impose a waiting period before employees are eligible. The maximum allowed waiting period is 90 days.

Employees can make changes to their plan if they qualify for a special enrollment period , which is triggered by a life change. For example, a covered employee who has a child would qualify for a special enrollment period to add a new baby to their plan. Employers must provide a special enrollment period of at least 30 days to employees who are eligible to change their plans.

Benefits of Offering Health Insurance as a Small Business

Offering health insurance to your employees, whether you’re obligated to do so by ACA rules or not, can help your business and your workers in many ways. Here are some of the main advantages of including health insurance as part of an employee benefits package.

• Attract top talent . Job seekers may be more inclined to pursue career opportunities with businesses that offer attractive benefits, including health insurance.
• Increase retention . A good health insurance plan may be an incentive for employees to remain loyal to your business, rather than moving on to another company.
• Qualify for tax breaks . Eligible businesses can qualify for the small business healthcare tax credit , which is worth up to 50% of employer-paid premiums. Tax credits reduce your tax liability dollar-for-dollar.
• Strengthen your business . Offering health insurance to employees could lead to a stronger business overall if workers experience greater job satisfaction, miss fewer days of work because they’re able to get adequate healthcare when they need it, and are more productive while on the job.

Eligible small businesses will need to file IRS Form 8941 , Credit for Small Employer Health Insurance Premiums, to qualify for this tax benefit.

Types of Health Insurance for Small Businesses

Small business owners may choose from multiple types of health insurance plans. Understanding how they compare is important when choosing a plan.

• PPO plans : Preferred provider organization (PPO) plans allow covered individuals to pay less out of pocket for care when they use in-network doctors, hospitals, and providers. Employees would still be able to seek care out of the network, but will pay more for it.
• HMO plans : Health maintenance organization (HMO) plans can have lower out-of-pocket costs for covered employees, but are more restrictive regarding which doctors, hospitals, and providers you can visit. HMO plans are often focused on wellness and preventative care.
• EPO plans : Exclusive provider organization (EPO) plans only cover healthcare costs when an employee uses an in-network provider. These plans can allow exceptions for emergencies.
• HSA-qualified plans : HSA-qualified plans or high-deductible health plans carry higher deductibles, but offer employees access to a Health Savings Account (HSA) . An HSA offers triple tax benefits to employees in the form of deductible contributions, tax-deferred growth, and tax-free withdrawals when the money is used for eligible healthcare expenses.
• POS plans : Point of service (POS) plans have lower out-of-pocket costs when employees use in-network providers. One key thing to note: These plans require a referral to see a specialist.
• Indemnity plans : Indemnity plans allow covered employees to visit any doctor, hospital, or healthcare provider, with costs covered by the plan once they meet a certain deductible. These are sometimes called fee-for-service plans since they require employees to pay premiums, deductibles , and co-insurance .

Finding Affordable Small Business Health Insurance

Affordability is likely to be a key concern when choosing a health insurance plan for your employees. The plan needs to be affordable for them to meet ACA standards, but it also needs to be affordable for your business if you’ll be paying some of the premium costs.

Here are some tips for finding affordable small business health insurance.

Use the Small Business Health Options Program (SHOP)

The Small Business Health Options Program (SHOP) is designed for small employers who want to provide health and/or dental insurance to their employees. You’ll need to be eligible for SHOP to purchase insurance through the program. You’re eligible if:

• Your business has one to 50 full-time equivalent employees.
• You plan to offer coverage to all full-time employees.
• You anticipate enrolling at least 70% of the employees to whom you offer insurance.
• Your business has an office or employee work site in the state whose SHOP you plan to use.

There are certain benefits associated with using SHOP to find health plans. Business owners can:

• Easily compare pricing and coverage for multiple plans in one place
• Opt to offer more than one plan to employees
• Choose how much to pay toward premiums
• Establish an appropriate waiting period for offering coverage to eligible employees

All of the information you need is centralized, but if you need help making sense of any of it, you can work with a SHOP-registered insurance agent or broker.

Use a PEO Service

A PEO, or professional employer organization, helps small businesses get the insurance they need. Effectively, when you join a PEO, you enter into a co-employment agreement. All of your employees then get access to the health plan options extended to other businesses that have joined the PEO.

You don’t give up any control over the running of your business, but joining a PEO makes that company the employer of record for your employees. Joining a PEO could offer your employees a wider range of plans to choose from, and it can take the guesswork out of trying to choose a plan on your own.

Partner with Purchasing Alliances

Purchasing alliances or cooperatives comprise multiple businesses that come together to purchase insurance collectively. Joining an alliance not only may offer more possibilities in terms of the types of coverage and plans you’ll have access to, but also could save money if you’re able to get access to affordable health insurance that isn’t available elsewhere.

One of the most important things to consider about joining a purchasing alliance is the types of businesses it serves. The more similar that member businesses are in terms of structure and number of employees, the more likely that the plans offered will reflect the needs of the member group as a whole.

Choosing the Right Health Insurance Plan for Your Small Business

Finding the right health insurance plan can be challenging, as there are a multitude of factors to consider, the first being where to buy coverage. Small businesses with fewer than 50 employees can look for options through SHOP or get help from a SHOP-registered broker or agent. Larger businesses can shop for plans with the help of an agent or PEO, or contact insurance companies directly.

When comparing small business health insurance plans, it’s important to consider:

• Premium costs
• Coverage options
• Network providers
• Employee needs

Business owners who are looking for plans through SHOP can easily compare coverage and prices for plans available in their area. All you’ll need to do is enter your ZIP code to see what options you might have.

As you look at SHOP plans, here are some other considerations to keep in mind:

• Will you offer one plan or a choice of plans?
• Will coverage be limited to medical only, or will you add dental coverage?
• How much of employee premiums do you plan to pay?
• Will you offer coverage to full-time employees only or include part-time workers?
• When will the coverage begin?
• What waiting period will you impose before employees can become eligible for coverage?

There are four types of plans offered through SHOP: bronze, silver, gold, and platinum. The amount employees pay depends on the plan, with the highest employee contribution at the bronze level and the lowest at the platinum level. Once you choose a plan and are ready to enroll, you can do so through a registered SHOP agent or broker, or the insurance company.

Some states have their own websites for SHOP enrollment, which you’ll need to use to choose a plan.  

Resources and Support for Small Businesses

Navigating healthcare rules and coverage options can be confusing for new and seasoned business owners alike. If you’re interested in getting more information about what’s required under the ACA or how to find health coverage as a small business owner, you might find these resources helpful:

• Health insurance for your business and employees (HealthCare.gov)
• How to enroll in SHOP insurance (HealthCare.gov)
• Small Business Healthcare Tax Credit and the SHOP Marketplace (IRS.gov)
• Employer Shared Responsibility Provisions (IRS.gov)
• Small Business—Get Answers Page (HealthCare.gov)

Which Businesses Are Eligible for the Small Business Health Options Program (SHOP)?

Small businesses are eligible for SHOP insurance plans if they have one to 50 employees. If you’re eligible, you don’t need to wait for an open enrollment period to start offering coverage to your employees.

How Can Small Businesses Find the Right Health Insurance Plan?

Small business owners can find the best health plan by first understanding what they and their employees may need. Businesses that are SHOP-eligible may look to the federal marketplace first to compare plans. Alternatively, businesses of any size may consult a private insurance agent or broker to help them make sense of the different health plan options that are available.

How Much Does Health Insurance Cost on Average for a Small Business Per Employee?

On average, the annual premium for single coverage for covered employees at small firms was $8,722 in 2023. The average premium cost was slightly lower for covered employees at large firms: $8,321. The average premium was $23,621 for family coverage at small firms and $24,104 for covered employees at large firms.

The Bottom Line

Health insurance is a requirement for some small business owners, but it may be optional for others. Offering health insurance, whether you’re required to do so or choose to, could help your employees and your business thrive.

When searching for coverage, it’s important to shop around to find the best health plan options for small businesses so that you can make an informed decision for your business.

Internal Revenue Service. “ Affordable Care Act Tax Provisions for Large Employers .”

Internal Revenue Service. “ Determining If an Employer Is an Applicable Large Employer .”

HealthCare.gov (Health Insurance Marketplace). “ Health Coverage If You’re Self-Employed .”

Internal Revenue Service. “ Questions and Answers on Employer Shared Responsibility Provisions Under the Affordable Care Act .”

HealthCare.gov (Health Insurance Marketplace). “ Minimum Value .”

HealthCare.gov (Health Insurance Marketplace). “ Affordable Coverage .”

Internal Revenue Service. “ Small Business Health Care Tax Credit Questions and Answers: Calculating the Credit .”

HealthCare.gov (Health Insurance Marketplace). “ Exploring Coverage Options for Small Businesses .”

HealthCare.gov (Health Insurance Marketplace). “ Special Enrollment Period (SEP) .”

Connecticut State Office of the Health Care Advocate. “ How Indemnity Plans Work .”

HealthCare.gov (Health Insurance Marketplace). “ How to Pick a Health Insurance Plan .”

HealthCare.gov (Health Insurance Marketplace). “ How to Enroll in SHOP Insurance .”

HealthCare.gov (Health Insurance Marketplace). “ Find Out If Your Small Business Qualifies for SHOP .”

HealthCare.gov (Health Insurance Marketplace). “ How to Offer SHOP Health Insurance to Your Employees .”

Kaiser Family Foundation. “ 2023 Employee Health Benefits Survey .”

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Small Business Guide to Health Insurance (2023)

We provide an overview of insurance requirements, costs and considerations, and recommendations for the best health insurance providers for small businesses.

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electing a small business health insurance plan is one of many important decisions you’ll need to make as a small business owner.

To help you choose a health insurance plan that balances your budget and your employees’ healthcare needs, we’ve created this small business guide to health insurance.

Read on to get an overview of insurance requirements, costs and considerations, and recommendations for the best health insurance providers for small businesses.

How does small business health insurance work?

Rules can vary from state to state, but there are four basic rules of thumb when it comes to small business health insurance:

• Coverage cannot be denied based on pre-existing medical conditions. Coverage is almost always guaranteed.
• Typically, a business needs at least one employee to qualify.
• You can sign up any time of year, not just during open enrollment, with premiums usually locked for a year.
• Typically, employers will have to pay at least half of employees’ monthly premiums.

Are you required to provide health insurance?

Under the Affordable Care Act (ACA) , you are required to provide health insurance if you have fifty or more full-time employees.  You may have to pay penalties if you don’t provide benefits to those employees who qualify. There may be additional criteria depending on where your business is based, so we highly recommend referencing your state laws and regulations.

Why should you offer small business health insurance?

Understandably, you may be worried about whether you can afford to provide health care coverage to your employees. While it will use up a portion of your business expenses, offering health insurance doesn’t need to be completely cost-prohibitive.

For instance, you can utilize health reimbursement arrangements or health savings accounts to help you and your employees afford health benefits. Whatever you choose, it’s a good idea to seek the help of a tax or financial professional who specializes in these sorts of matters to help you determine how it could affect your business financially.

Here are some of the top reasons to consider offering health insurance:

• Attract first-rate talent. A comprehensive benefits package demonstrates to job candidates that your business is competitive and prioritizes employee well-being.
• Improve employee retention. Raises aren’t the only way to keep employees. Glassdoor’s Employment Confidence Survey showed that 40% of employees value health insurance benefits more than a pay raise. Retaining employees means fewer costs associated with onboarding, training new workers, and interrupting business flow.
• Benefit from tax incentives. In most cases, you can deduct 100% of the cost of monthly premiums from federal taxes . You could also benefit from reductions in payroll tax and deductions from HSA contributions.

How much does health insurance for a small business cost?

Small business owners tend to be concerned about costs when offering group health insurance. There are plenty of health insurance options to ensure you stay within budget and increase health insurance coverage as you need to.

According to a 2022 Kaiser Family Foundation study , the average annual premium for employer-sponsored health insurance was $7,911 for single coverage, with the employer contributing $6,581 on average. 

Cost to employer

Employers should expect to pay about 50% of insurance premiums for their employees. This is a requirement to qualify for the federal small-business healthcare tax credit. It is also often required by the insurance companies themselves.

Therefore, if the annual average in 2022 for health insurance for an individual was $7,911, you would have to pay about $3,955 a year for a single employee.

Cost to employees

With the introduction of the Affordable Care Act (ACA), the maximum out-of-pocket limit for 2023 is:

• $9,100 for individual coverage 
• $18,200 for family coverage 

The most budget-friendly option for group coverage is a high deductible, low premium plan. That way, your upfront out-of-pocket costs are lower. You might also look at options for low deductible, high premium plans if you or your employees carry different health needs – this will come at a higher cost.

In general, you’ll be able to choose from different tiers to see how much coverage other plans provide. Coverage options might look like this:

• Bronze Tier: 60% coverage, 40% deductible
• Silver Tier: 70% coverage, 30% deductible
• Gold Tier: 80% coverage, 20% deductible
• Platinum Tier: 90% coverage, 10% deductible

There are some insurance companies that offer the following types of tiers:

• No deductible plans: The plan provides all coverage.
• High deductible plans: With these plans, there are a significant amount of out-of-pocket expenses but with lower premiums.
• Low deductible plans: With these plans, there are some out-of-pocket expenses and higher premiums.

Don’t forget to factor in a plan’s total deductible and out-of-pocket limits. The entire plan cost will be the same as the deductible plus the monthly premium. This means that even if your premium seems low, it could end up more expensive compared to other plans once you factor in the total deductible.

It’s also essential to consider copays that your employees will need to pay. Some employees will want to set up a Health Reimbursement Account (HRA) or Health Savings Account (HSA). Make sure to look into where this fits into your group health insurance plans.

Factors that affect the cost of health insurance

In general, five factors will determine the cost of health insurance coverage:

• Choice of provider
• Type of plan selected
• Number of employees
• Demographics of your employees
• Qualifying tax credits

You’ll also find plans that differ by type of network. This will determine how accessible various doctors are to your employees. You’ll usually find the following options:

• Health Maintenance Organization (HMO). These plans are generally the most restrictive, as they require patients to choose from a list of approved doctors, do not include any out-of-network coverage, and will typically need referrals for specialists. However, HMOs tend to be the cheaper plan when compared to PPOs.
• Preferred Provider Organization (PPO). PPOs are generally the most flexible, as the patient can choose their own doctor and may not need approval to see specialists. They will also likely cover some out-of-network providers. However, they are usually the more expensive plan option. 
• Exclusive Provider Organization (EPO). These plans have similarities to both HMOs and PPOs. With an EPO plan, there is no out-of-network coverage, but patients typically don’t need referrals for specialists.

How to Choose the Right Health Insurance for Your Small Business

In addition to understanding the components of health insurance plans outlined above, reviewing a plan’s eligibility features will help you determine what your employees will appreciate the most.

In most cases, health insurance plans will offer the following benefits:

• Outpatient care
• Inpatient care (including in-hospital stays)
• Pediatric services
• Preventative services
• Prescription drugs
• Emergency room visits
• Treatments for chronic conditions
• Pre- and post-natal care
• Mental health and substance abuse services

Take a careful look at what different plans offer as far as deductibles and coverage costs. There may be limits or caps in place to prevent employees from accessing too much of a particular type of service. Keep in mind that some employees may have dependents they wish to add to their health insurance coverage.

When choosing a health insurance plan, consider your employees’ needs and what they may benefit from the most. You may end up paying more upfront, but retaining your best employees will lead to a significant positive impact on your business's success in the long run.

Now that you know a little more about small business health insurance, let’s look at how to shop for affordable insurance options.

How to find affordable small business health insurance

• Seek out the providers directly. Contacting the insurance companies directly is the most straightforward option, though you may need to work with a broker depending on the provider. You can typically request a quote based on your location and headcount and then compare your options.  ‍
• Use SHOP. The Small business Health Options Program (SHOP) is available for employers with 1-50 full-time employees via the ACA. This program helps small businesses provide private health insurance options to their employees without needing to shop around (no pun intended). With SHOP, companies work with a registered broker to help select a plan, determine any tax credits, and assist employees with understanding their benefits.  ‍
• Consider PEOs. Professional Employer Organizations (PEOs) are great options for small businesses since they typically include large-business health insurance coverage as part of their offerings. In addition, they usually handle HR and administrative tasks like payroll. 

Best health insurance companies for small business owners

These are a few of the top health insurance companies for small businesses, as well as an overview of each:

United Healthcare 

Pros: United stands out for providing the largest network of providers. It also offers benefits options for part-time and seasonal employees, virtual therapy, and specialty healthcare, and is a leader in technology in the form of helpful in-app services.

Cons: United has been sued for wrongfully denied claims. It also does not offer a platinum plan.

Blue Cross Blue Shield

Pros: BCBS stands out for its customer service ratings. It operates in all 50 states (and some international locations) and has comprehensive healthcare offerings, including workplace wellness plans.

Cons: This service comes at a cost. BCBS has higher-than-average healthcare premiums and high deductibles.

Pros: Elevance is one of the most affordable insurers in this group. It offers numerous plan types and an extensive network of healthcare providers.

Cons: Elevance is only available in 14 states. It has a high rate of coverage denials which may explain its low customer satisfaction ratings.

Pros: Aetna places a strong emphasis on preventative treatments and encourages participants to make healthy lifestyle choices. It is also known for user-friendly experiences, whether online, in-app, or over the phone, and for its affordable prices.

Cons: Aetna only operates in 16 states and has a history of wrongfully denying claims. This may also explain its higher-than-average complaint rate.

Kaiser Permanente

Pros: Kaiser Permanente is the cheapest insurer in the group providing low prices for equivalent plan options. It has a wide range of available plans and runs a system of private hospitals only available to its plan participants.

Cons: It is only available in eight states and Washington D.C., and because it is a closed group, care options may be limited. 

Pros: Humana offers participants the most flexibility to customize their plans, with add-ons like dental, vision, and hearing insurance.

Cons: Their plans are pricey compared to other insurers. 

Pros: Cigna stands out because of its live customer service, accessible 24 hours a day, 365 days a year. It also gets excellent customer reviews and has a huge network of 1.5 million providers worldwide.

Cons: It is only available in 12 states, and its monthly premiums are expensive. 

Alternatives to health insurance

You can utilize health reimbursement arrangements or offer health savings accounts (typically only available on high deductible health plans) to make benefits more affordable.

Additionally, there may be tax credits or other state services that are available to you depending on the size of your small business.

Affordable health insurance for your small business isn’t impossible to find! Carefully consider your budget and benefit options, as well as your employees’ needs, to choose the best plan. 

You may end up paying more upfront, but think of this as the cost to retain key employees.

For more information, visit healthcare.gov to learn more about small business health insurance options, costs, and eligibility. 

Novo Platform Inc. strives to provide accurate information but cannot guarantee that this content is correct, complete, or up-to-date. This page is for informational purposes only and is not financial or legal advice nor an endorsement of any third-party products or services. All products and services are presented without warranty. Novo Platform Inc. does not provide any financial or legal advice, and you should consult your own financial, legal, or tax advisors.

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5 best health insurance companies for small businesses

More and more people are deciding to become entrepreneurs. Approximately 19% of working-age adults in the U.S. were in the process of starting a business or running a business less than 42 months old, according to the 2023 Global Entrepreneurship Monitor report.

As your business grows and you bring on workers, you may need to provide benefits. Businesses with fewer than 50 employees aren’t required by law to provide health insurance benefits, but health insurance is a highly-desired benefit. To attract and maintain a talented workforce, providing benefits may be essential. 

We identified the leading providers based on their availability, plan options and customer satisfaction ratings (see our full methodology ): 

The 5 best small business health insurance providers for 2024

Best overall: blue cross blue shield, best for added benefits: kaiser permanente.

• Best for Micro businesses: UnitedHealthcare

Best for Small to Midsize Companies: Cigna

Best for comparison shopping: small business health options program (shop).

*Last updated March 12, 2024

If you’re shopping for coverage, finding the right provider can be daunting. To help you narrow down your options, we selected the five top providers of small business health insurance: 

Blue Cross Blue Shield

Our verdict

Blue Cross Blue Shield is one of the few providers that has insurance options in all 50 states, so it’s a good choice for businesses nationwide. Its independent BCBS companies typically have options for small to midsize companies. Whether you have one employee or 100, you can likely get coverage through BCBS, and you can choose a network plan that fits your budget and employee needs. 

Kaiser Permanente

Our verdict 

If you live in one of the states where Kaiser Permanente operates, it can be a good choice for employers looking to offer robust coverage to their employees as a recruitment or retention tool. With its plans, you can give your employees the convenience of telehealth visits and supplemental benefits, including acupuncture, chiropractic care, and dental and vision coverage. 

Best for Micro Businesses: UnitedHealthcare

Unitedhealthcare.

UnitedHealthcare is best for micro business owners, or those who own a business with fewer than 10 employees. Its small business store is available to small business owners with two to 50 employees, and you can use the tool to get quotes and see what deductible, copay and premium amounts are common in your area. If you find coverage that suits your needs, you can purchase coverage directly through the store. 

If you have a growing business, Cigna could be a useful option. Whereas some providers only offer coverage for employers with fewer than 50 employees, Cigna has options for small to midsize businesses, allowing you to get coverage for up to 499 employees. Its plans include benefits like virtual care and it offers multiple plan tiers, including high-deductible health plans. 

Small Business Health Options Program (SHOP)

SHOP is a marketplace that was created through the Affordable Care Act (ACA). Through SHOP, employers can compare plans and prices from leading providers in their area. With SHOP, you can control how much you pay toward employee premiums, and you may be eligible for valuable tax credits that are only available to employers who enroll in SHOP plans. 

What to know about health insurance for small businesses

If you are a business owner with 50 or more employees, the law requires you to offer coverage to your employees. 

By contrast, those with fewer than 50 employees aren’t required to provide health insurance. But even if you aren’t legally obligated to provide coverage, it can be a smart idea as a recruitment and retention tool. In fact, studies, including one conducted by Avalere Health and funded by the U.S. Chamber of Commerce, have shown that offering health insurance benefits produces a strong return on investment and increased productivity.  

You may also qualify for valuable tax credits if you offer health insurance benefits. The Small Business Health Care Tax Credit is worth up to 50% of the costs of your employees’ premiums. To qualify for the tax credit, your business must meet the following criteria: 

• You have fewer than 25 full-time employees
• The average annual salary of your workers is about $56,000 or less
• You cover at least 50% of your employees’ premiums 
• You offer coverage through SHOP to all of your full-time employees 

How to choose a small business health insurance company

When shopping for a small business health insurance provider, consider the following variables: 

Employee size: Each provider has its own employee requirements. In general, you’ll need between one and 50 employees to qualify for small business health insurance. 

Availability: While some providers offer coverage nationwide, others are more limited in scope, only issuing policies in certain states. Similarly, some plans allow workers to receive care in any state, but some plans have more restrictive local networks. 

Customer support tools: Most insurance providers require you to work with an agent or broker to get details about cost and plan options. But some companies have online tools and platforms that allow you to get quotes and view your options on your own.

Networks: Insurance providers offer plans with different network types. Depending on the provider, you may be able to provide your workers with the following options:

• Exclusive Provider Organization (EPO): EPOs are managed care plans that only cover services if you visit healthcare providers and hospitals within the network. 
• Health Maintenance Organization (HMO): With an HMO, you’re limited to care within the network, and you must get a referral to visit a specialist. HMOs tend to be the lowest-cost option. 
• Point of Service (POS): POS plans are less expensive if you use in-network providers, but you need a referral to visit a specialist. 
• Preferred Provider Organization (PPO): PPOs are often more expensive, but they give covered persons more flexibility. In-network providers are less expensive, but you can visit out-of-network providers, and you can see a specialist without a referral. 

There’s a lot to consider when it comes to business insurance, not just health insurance for your business. Our comprehensive guide breaks down the types of insurance options — from BOP’s to general liability and others — to help you understand which policy watches your needs. We have also compiled the best insurance companies for small businesses . If you operate a jewelry retail business, you may want to consider Jewelers Mutual’s business insurance specifically designed for jewelers.

Frequently asked questions

How much does health insurance cost a small business for each of their employees.

The cost of health insurance for small business employees will vary based on a number of factors including types of plans, risk to injuries, and region in the country. According to a 2023 KFF report , the average costs per employee per month is $690.

Do I have to provide health insurance to my employees? 

You only have to provide health insurance to your employees if you have 50 or more full-time workers. Those with fewer than 50 employees aren’t legally required to offer coverage, but you may be eligible for valuable tax benefits if you do. 

What are the penalties for not offering health benefits? 

Employers with 50 employees or more that don’t offer coverage that meets minimum value and affordability standards may incur penalties. Depending on what coverage you offer, the penalty ranges from $247.50 to $371.67 per month, per full-time employee. 

What do entrepreneurs do for health insurance? 

If you don’t have any employees, you won’t qualify for group plans from small business insurance providers. However, you may be eligible for an individual health insurance plan through Healthcare.gov or your state health insurance marketplace. 

Our methodology  

We evaluated seven leading providers and marketplaces of small business health insurance. To make our selections, we evaluated each company on the following criteria: 

• Availability: Preference was given to companies operating in the majority of states. 
• Employee minimums: We looked for companies with low employee minimums, offering coverage to businesses with just one or two employees. 
• Product options: We focused on companies with multiple insurance plans, including multiple network options and tiers of coverage. 
• Customer satisfaction: Priority was given to companies with high ratings from the National Committee for Quality Assurance Ratings.

EDITORIAL DISCLOSURE : The advice, opinions, or rankings contained in this article are solely those of the Fortune Recommends ™ editorial team. This content has not been reviewed or endorsed by any of our affiliate partners or other third parties.

Guide to small business insurance

The 10 best insurance companies for small businesses, 5 best small business insurance companies in california of 2024, 5 best small business insurance companies in new jersey of 2024, 5 best small business insurance companies in texas of 2024, 5 best small business insurance companies in florida of 2024, 5 best small business insurance companies in new york of 2024, a comprehensive guide to small business insurance: here's how to safeguard your company, general liability vs. professional liability insurance: which one does your business need, everything you need to know about workers’ compensation: how it works, how much it costs, and who pays for it, what is bond insurance, and how can it protect your business.

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How Much Does Small-Business Health Insurance Cost?

Amrita Jayakumar

Claire Tsosie

Assigning Editor | Credit cards, Medicare, business software, moving services, home improvement

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

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• $7,813 for single coverage, of which employers contributed $6,485 , or 83%.
• $21,804 for family coverage, of which employers contributed $13,737 , or 63%.

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How does small-group health insurance work?

How much do group health insurance premiums cost employers, employer contribution requirements, employee profile.

• The age of your employees and their dependents.
• Employees’ tobacco usage habits.
• Where your employees live.

The type of plan you pick

Industry and location, where can you buy small-group health insurance.

• Directly from an insurance provider in your state.
• Using an insurance broker. The broker will shop for policies tailored to your business. They’ll charge a commission (typically a percentage of the premium), and may also charge a broker’s fee. Some payroll products, such as Gusto and QuickBooks Payroll , allow you to buy health insurance from brokers on their platforms.
• Using the Small Business Health Options Program: SHOP is the federal government's insurance option for businesses with fewer than 50 full-time equivalent employees (up to 100 in some states). Most states require at least 70% of your eligible employees to participate in the SHOP health plan you offer.Businesses with fewer than 25 employees may qualify for a small-business health care tax credit worth up to 50% of premium costs.
• Using a Professional Employer Organization. A PEO is a company you can hire to administer benefits on your behalf. PEOs can legally become the co-employer of your employees. By serving as co-employer for multiple small companies, PEOs have a combined employee pool equivalent to that of a larger company. This gives them access to more competitive insurance rates than small businesses can typically get on their own.
• Qualify for QSEHRA . This is an arrangement for small businesses that offers employee reimbursement for qualified health expenses. Employees are not allowed to contribute through their paychecks and employer contribution terms to each employee’s QSEHRA must be the same.

Business Owner’s Policy (BOP): What It Covers, How to Get It

What Is Workers’ Compensation?

LLC Insurance: Best Options for Your Business in 2023

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Best small-business insurance 2024: compare companies and coverage, how to get business insurance: the ultimate 4-step guide, how much does business insurance cost.

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Small Business Trends

Best small business health insurance.

A small business owner easily might become overwhelmed when it comes time to buy health insurance. With so many types of small business health insurance from which to choose, and so many companies offering those benefits, where is one to begin selecting health insurance ? After all, there are a lot of health insurance acronyms to understand.

Fortunately, the decision to purchase health insurance doesn’t have to be a daunting one. With just a little bit of knowledge and some basic information about small business health insurance companies, small business owners can make the best decisions for their companies and their employees

Types of Small Business Health Insurance

Before small business owners can understand the different health insurance options and various health insurance premiums, they must first understand the different types of small business health insurance plans. There are a few types of small business health insurance, each with its own benefits, deductibles and costs.

• HMO Plans – Health management organization (HMO) plans are limited health insurance plans with the goal of cutting healthcare costs. HMO plans work great for healthy individuals who are on a tighter budget and who are comfortable only visiting doctors within a prescribed network of healthcare providers.
• PPO Plans – Under preferred provider organizations (PPOs), patients have access to a larger network of doctors and more flexible care options, but they also typically pay higher costs for premiums and care. PPO plans are great for those who want to shop around for doctors, who are comfortable with and able to spend more, and who might need specialized care for a medical condition.
• POS Plans – A point of service (POS) plan combines the benefits of an HMO and a PPO. While customers still need a specialist’s referral from a primary care physician, they pay less for out-of-network medical visits. The cost of a POS generally falls somewhere in between an HMO and a PPO.
• EPO Plans – When consumers rely on an exclusive provider organization (EPO) plan for health insurance, they are encouraged to remain within their healthcare provider network, but they don’t need to get a referral if they choose to venture beyond it. The cost-effective health insurance option offers extra flexibility to small businesses.
• HDHP – A high deductible health plan can be a risk for those that are uncomfortable paying out of pocket for medical care. The high deductible means the plan won’t start paying toward healthcare costs until the patient has incurred at least $1,300 in expenses. These plans can be offset by establishing health savings accounts through the federal government. HSA for small businesses is a tax-advantaged account that can be contributed to by both employers and employees in conjunction with an HDHP.

Choosing the Best Small Business Health Insurance Plans

While understanding the different types of group health insurance plans will help small business owners when selecting health insurance, choosing health insurance coverage still remains a challenge for many small business owners. What do various health insurance plans have to offer, which is the best health insurance company, and how much does small business health insurance cost from various sources? Some health insurance providers might even offer additional options like self-employed health insurance , health savings accounts, benefits of dental insurance , and vision insurance coverage.

Navigating Health Insurance for Small Businesses: Our Methodology

As small business owners, we know that finding the right health insurance is more than a corporate necessity—it’s a vital component of employee well-being and business success. With an array of options clouding the decision-making process, we cut through the fog to bring clarity on what truly matters. In this section, we lay out the essential criteria to weigh when selecting the best small business health insurance plan. Each one is rated on a scale of one to ten, with ten being reserved for the most important elements. Here’s how we break it down:

• Scale of Importance: 9/10
• Plans must provide comprehensive coverage that meets your employees’ health needs without imposing restrictive limits.
• Scale of Importance: 8/10
• The plan should offer a fair balance between cost and the benefits received, ensuring it’s a sound investment.
• Scale of Importance: 7/10
• A wide network of healthcare providers ensures your employees have access to numerous quality care options.
• The ability to tailor plans to suit diverse employee needs can greatly enhance satisfaction and coverage effectiveness.
• Insurance should not be a maze; straightforward management and utilization are key for time-strapped small businesses.
• Scale of Importance: 6/10
• Access to responsive customer service can streamline the resolution of issues and provide necessary guidance.
• Feedback from current policyholders can give insights into the real-world application and satisfaction with the insurance.
• Scale of Importance: 5/10
• Programs that promote health and wellness can be invaluable, contributing to overall employee health and productivity.

Best Small Business Health Insurance Companies

What are the best health insurance providers for small businesses in 2022? Small business owners must consider a variety of factors when choosing the best health insurance company, including coverage, flexibility and cost. Most health insurance companies will offer similar plans, but each will feature unique elements and pricing. A small business owner might want to offer a health insurance option that includes dental insurance or even vision benefits, or they might seek the most affordable options or the best health insurance provider for overall general health coverage.

1. United Healthcare

Best For: Extensive coverage

Often chosen as the best health insurance for small business owners, United Healthcare features a large number of in-network providers and thousands of facilities throughout all 50 U.S. states. The health insurance provider makes substantial investments in technology to meet consumer demands, and it offers effective group coverage with a large scope and positive cost to value ratio for a variety of small businesses.

2. Blue Cross Blue Shield

Best For: Data-driven healthcare solutions

Other popular health insurance providers for small businesses include Blue Cross Blue Shield , which operates through the 36 local and independent health insurance companies in all U.S. states. Health benefits from Blue Cross Blue Shield are effective options for small business owners because the brand is trusted by millions of small businesses and their employees, and the health insurance plan is one of the nation’s most popular PPO networks, with a large coverage scope and generally positive reviews.

Best For: Preventative care advantages

Providing health insurance as a small business can become a reality by choosing Humana as a small business health insurance provider. One of the largest insurance providers in America, Humana’s plans are known for their preventative care coverage and convenient plan features like wellness rewards. Humana makes it possible to offer health insurance by offering a variety of affordable plans for small business owners and their employees.

4. Kaiser Permanente

Best For: Affordability

Small business owners in eight U.S. states and the District of Columbia can choose an affordable small business health plan from Kaiser Permanente . The largest managed care organization in the country, Kaiser Permanente offers many affordable small business health insurance plans and options. With a strong emphasis on preventative care, Kaiser Permanente health insurance customers have the chance to stay healthy.

Best For: High deductible health plan options

One of the largest companies that provide health insurance in America, Aetna features competitive and affordable health insurance options for small business employers, including funding options and wellness offerings. In addition to offering health insurance, Aetna offers self-funded coverage to small businesses, and the health insurance provider is known for its high levels of customer satisfaction.

Best For: Flexible premiums and deductibles

While only available in 10 states, Cigna is still one of the best health insurance providers thanks to its broad range of small business health insurance options that accommodate a variety of needs, as well as its flexible premium and deductible options. Cigna features a large provider network, a detailed website and outstanding customer service.

Best For: Integrated health care

The largest for-profit managed health care company in the Blue Cross Blue Shield Association, Anthem is available to customers in 14 states. The health insurance provider has one of the most extensive networks in the country, so finding a doctor is a cinch. Because Anthem takes an integrated approach to medical care through combined health plans, patient data is connected to more effectively manage care.

What Health Insurance Companies Rank Best for Customer Satisfaction?

Both Forrester and Verint Systems have released studies ranking the nation’s top insurance payers based on customer satisfaction, with varying results. According to Forrester’s survey of more than 85,000 U.S. adults, Human ranks first for customer satisfaction, followed by Kaiser Permanente. Verint’s report , on the other hand, ranked United Healthcare first in customer satisfaction, with Humana coming in second place.

What Is The No. 1 Health Insurance Company in the United States?

With total revenue exceeding $286 billion in 2021, United Healthcare is the largest health insurance company in the United States by revenue, according to analysis by ValuePenguin. The insurer is also the largest company by membership and market share. Anthem is the second-largest health insurance provider in all three categories.

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Small Business Health Insurance

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Benefits of finding your Small Business Health Insurance through eHealth

Shopping for health insurance plans for your small business couldn't be more simple. eHealth has a curated selection of affordable group health insurance plans from trusted carriers . Our licensed agents can provide personalized recommendations and walk you through the application and enrollment process with no pressure or expectations to enroll.

We're your advocate

If you ever need help dealing with the health insurance company regarding claims, billing or need any assistance, we’ll be there for you.

We have the best prices

Prices are fixed by law. You won’t find a better price for any health plan we sell.

We're unbiased

We will empower you with decision making tools so that you decide what health plan is best for you.

eHealth offers 1,300 small business health insurance plans from over 70 carriers

Oscar Monthly cost starts at:

Kaiser Permanente Monthly cost starts at:

UnitedHealthcare Monthly cost starts at:

Pricing varies based on specific circumstances. Prices shown are estimated minimum rates for two 30-year-old employees with an employer contribution rate of 50% (the minimum in most states).

Get help with health reimbursement arrangements from eHealth

eHealth can guide you through the process of setting up an Individual Contribution Health Reimbursement Arrangement, also known as ICHRA . These flexible cost options may offer many advantages over traditional group plans:

• Remote employees can pick plans in their area, even if it's a different location than their employer.
• There are no minimum participation requirements. Employees can waive coverage if they wish.
• Employees can enroll outside of the federal open enrollment period.
• All employees can participate, even part-time and seasonal workers.
• Gives employers freedom to control costs and there are no limits to how much an employer can reimburse.
• More options means employees can choose plans and doctors that work for them
• Employees can keep plans if they change jobs, the only change would be the employer reimbursement.

To learn more about your options, call 1-877-456-6670 , or click here to get a quote.

Small Business Health Insurance Basics

How does it work?

How does small business health insurance work?

Getting coverage through a small business health insurance plan can be more affordable than buying coverage by yourself. Here's what you need to know:

• Coverage is generally guaranteed issue.
• You need at least one employee to qualify.
• You must contribute toward employee premiums.
• And you can shop for coverage at any time of the year.

How much does small business health insurance cost?

An average eHealth small business plan covers 5 people and costs $1432 per month in premiums - or $286 per person.

Does my business qualify for a health insurance tax credit?

You may qualify for a tax credit that could cover some of the costs you pay for employees' premiums. This credit reimburses qualifying small businesses for up to 50% of the premiums paid toward health, dental, and vision insurance. eHealth can help you obtain your tax credit and find a small business health insurance plan that works best for you and your employees. In order to qualify:

• The average annual wage per worker must be less than $50,000.
• Your business needs to have 25 full-time employees or less.
• You need to contribute a minimum of 50% toward employee health coverage.

Shop Group Insurance Plans by State

Learn more about small business health insurance options available in your state

• Alabama Small Business Health Insurance
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• Wyoming Small Business Health Insurance

How to choose the right small business health insurance plan

Assess your needs.

First, determine what your small business needs in a health insurance plan. Consider the following:

• Who will be covered? Consider the needs of your employees and their dependents to find a plan that will suit the diverse medical and financial needs of the group.
• How much cost sharing can you afford? Premiums for small business health insurance are paid by the employees and the employer. Make sure consider how much cost sharing makes sense for your business.
• What kinds of benefits are important for you and your employees? While federal privacy laws prohibit employers from inquiring about employees medical history, it’s important to ask your employees which types of benefits are important to them.

Compare small business health insurance options

There are a lot of factors to consider when weighing your small business health insurance options. At eHealth, we recommend using the following 5 criteria to find plans that best match your needs:

• Monthly premiums : Know what you and your employees will be able to pay on a monthly basis.
• Deductibles, copayments and coinsurance : Ensure these types of payments will be manageable for you and your employees when you receive medical care.
• Medical provider networks : If you already have a preferred doctor or facility, make sure they'll be included in your new coverage.
• Prescription drug coverage : Use eHealth prescription drug comparison tool to see which plans cover costs of certain prescriptions.
• Coverage add-ons : With eHealth, you can add things like vision and dental care to ensure your employees are fully covered.

Small business health insurance enrollment process

• Enrollment is the process of getting your employees and their dependents signed up for your new health plan. Once you've selected a plan, an eHealth agent can walk you through the enrollment process.
• During enrollment, be sure to answer all questions honestly and to the best of your knowledge. Though premiums may differ based on medical history of certain individuals, no employee will be declined coverage.

Compare Types of Small Business Health Insurance Plans

Learn about different types of health insurance coverage options to find the plan that’s best for you and your employees. Common types of health insurance plans include:

Health Maintenance Organization (HMO): HMO plans offer affordable, comprehensive health coverage with relatively low out-of-pocket costs, but most care must be done in-network to avoid additional costs.

• Each member selects an in-network Primary Care Physician (PCP)
• Referrals from your PCP are often required to see a specialist
• Out-of-pocket costs are predictable and often limited to low annual deductibles and copayments for doctor visits and other covered services
• The number of providers in the HMO network varies by location

Preferred Provider Organization (PPO): While premiums are often higher for a PPO than for an HMO plan, a PPOs typically offer larger networks and will give you more flexibility.

• Members don’t have to choose a PCP
• Members don’t need a referral to see a Specialist
• Members can choose any doctor or hospital regardless of whether the provider is in the plan’s network (costs may increase for out-of-network care)
• Out-of-pocket costs may include annual deductibles, copayments, and coinsurance for covered services

Point of Service Plan (POS): A POS health plan is a hybrid, containing features of PPOs and HMOs. POS plan premiums are often mid-range between HMO and PPO plans. However, POS network size varies by location.

• Members usually need to select an in-network PCP
• Members usually don’t need a referral to a Specialist to receive POS plan benefits
• Members can choose to use the plan’s provider network for some services and go outside the network for other services
• Members usually pay a small portion of the cost of covered services when they stay in the POS network

What people are saying

eHealth makes it easy for small business owners to find the perfect plan at the lowest available cost

“Before working with eHealth I thought buying group health insurance would be difficult. I didn't expect it to be as EASY as eHealth made it. My advice, work with eHealth - it's easy.”

- MS Glass LLC , Texas

“As a busy business owner, I needed eHealth to advise me and handle my group health insurance details. eHealth is an invaluable resource. Health insurance doesn't have to be complicated. Need help? call eHealth!”

- Tabatha , Nevada

“Choosing the right health plan can be complex. eHealth helped me understand the pros/cons to each plan choice. eHealth made group health insurance EASY!”

- Paul , New Jersey

“At first I felt buying group health insurance was so confusing. But eHealth made it so much simpler. eHealth makes health insurance easy!”

- Brett , Georgia

“eHealth gave me the guidance to feel confident buying group health insurance. Don't wait, ask eHealth about Small Business health insurance.”

- Carlos , Texas

“eHealth's customer service makes group health insurance easy. At renewal time, eHealth answered all my questions and showed me all the options they offer.”

- Cindy , Texas

“eHealth gave me the support I needed to pick the right plan and complete the application. My advice, stop researching and go to eHealth for help!”

- Arthur UX , California

“I was unsure about choosing the right health plan for my business. eHealth explained all my options, honestly. eHealth gave me the assurance I needed to find the right health plan.”

- Any Screen Inc. , Colorado

“eHealth guided me to the best options in health insurance for my business. I felt very comfortable with the process and the results. I would advise friends to sign up through eHealth.”

- Elliott S. , California

“I'm advising my friends to use eHealth! The process of signing up or a group plan was simple.”

- Sarika K. , Texas

“The process of signing up for a group plan was fast and easy with eHealth. They made health insurance accessible. SIGN UP THROUGH EHEALTH!”

- Ekaterina S. , Florida

eHealth has a fabulous and effective on-boarding process.

A great agent partner makes a huge difference!

- Russell W. , Texas

“It is a breath of fresh air to work with eHealth, where the team takes customer service to the next level.”

- Varner Faddis Elite Legal , Colorado

“It's hard to even explain how much eHealth helped us. By having a conversation about my specific health insurance needs, we were able to save over $600 a month.”

- Rachel M. , Virginia

Frequently asked questions

How much does health insurance for small businesses cost.

The insurance company will determine the final monthly cost for your group health insurance plan once your application has been reviewed and approved. Costs vary based on a number of criteria, including the size and location of your company, and the ages of your employees. As part of the Affordable Care Act, the health of your employees, including pre-existing conditions, no longer impact group health insurance rates. Please note that your final monthly rate will be the same whether you apply through eHealth, another health insurance agent, or directly with the insurance company.

An average eHealth small business plan covers 5 people and costs $1,432 per month in premiums - or $286 per person.

How much do employers pay for group health insurance? How much do employees pay?

Typically, an employer covers at least 50% of the employee's monthly premium. In these cases, the employee covers the remainder of their own premium and then covers the full premium for any of their dependents. Minimum employer contribution levels may differ from state to state and from one insurance company to the next. Also, some employers opt to cover a higher percentage of the employee's monthly premium and sometimes a portion of the premium costs for an employee's dependents.

During the application process, you'll be able to indicate how much of your employees' (and their dependents') monthly premiums you would like to cover.

Do group health insurance plans include dental and vision?

Group health insurance plans don't include coverage for dental and vision, but these are often available as benefit riders that can be added to your group health insurance plan for additional fees. Once you select a group health insurance plan, you'll have the opportunity to view the additional insurance plans or riders that are available in your area.

Can eHealth help me if I am already working with a broker?

If you already have a broker or have purchased a group health insurance plan in the past through a broker or health insurance company, eHealth can help you to maintain your current plan or find a new plan that meets your health insurance needs.

In addition:

• eHealth provides you with world-class customer service.
• eHealth is a platinum agent with many top health insurance companies.
• eHealth has dedicated account managers to assist you.
• Rates are regulated and do not vary by broker, so there's no additional cost to you.

What types of small business health insurance plans does eHealth offer?

eHealth offers over 1,300 group health insurance plans from 70+ carriers throughout the United States. Our licensed agents shop and compare products from multiple insurers to curate plans that are optimal for each company's specific needs.

Group health insurance plans are categorized as either indemnity plans (also known as "traditional indemnity," "fee-for-service," or "FFS" plans) or managed care plans. Indemnity and managed care plans differ in their basic approach. The major differences concern choice of providers, out-of-pocket costs for covered services, and how bills are paid:

With an indemnity plan, you typically have a broader choice of doctors (including specialists, such as cardiologists and surgeons), hospitals, and other health care providers.

With a managed care plan, you typically have less out-of-pocket costs and paperwork. Indemnity plans once dominated the American health insurance market, but are no longer as popular as they used to be. Managed care plans now take up a much larger share of the general health insurance market and are especially dominant in the western parts of the country. There are three basic types of managed care plans: PPOs, HMOs, and POS plans.

What are the benefits of offering an ICHRA to employees?

An ICHRA plan can enable a company to focus on their business rather than navigating the complexities of group health plans. Monthly reimbursements provided by the employers don’t count as taxable income. In most cases, ICHRA increases employee options for health coverage by allowing them to shop for plans in the individual market and select coverage that best suits them.

What is the process for applying for group health insurance?

Here are the steps for selecting and applying for a group health insurance plan:

• Tell us about your company and employees on eHealthInsurance.com.
• We provide you with health insurance quotes for leading companies in your area.
• You then compare plan rates and benefits to find the plan that best meets your needs.
• You'll be able to speak with a licensed agent for personal help selecting a plan and starting the application process.

Are small businesses required to provide health insurance for employees?

Businesses with fewer than 50 full-time-equivalent employees aren't required to provide health insurance to their employees and won't face tax penalties for not doing so.

But that doesn't mean small businesses should not, or will not, provide health insurance for employees. Many wise employers offer health insurance because it's better for their workforce. Health benefits allow them to recruit and retain talented employees who expect to get health insurance with a job. And, when employees have access to health care, they're more likely to take part in preventative care procedures, which reduces illnesses, reduces absenteeism, and increases productivity.

In addition, small business employers may receive tax credits when they provide coverage, as follows:

• Employers with 25 or fewer full-time equivalent employees with average annual wages of less than $50,000, may be eligible for a special tax credit of up to 50% of the amount the employer contributes (at least 50%)toward employee insurance premiums.

Whether you offer health insurance to employees or not, you should make your employees aware of their obligation to seek health coverage under the Affordable Care Act. You also have to let your employees know that they have access to guaranteed coverage in the individual market and that they may be eligible for government subsidies if the coverage you provide them is not deemed to be affordable under the law.

Find your small business health insurance plan

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Protect the health of your business

Health insurance can help your small business by providing you and your employees with quality medical care and helping you attract and retain the best employees.

You and your employees have worked hard to build your business. Now, it's time to reinvest in your greatest asset: your employees. For many small and medium businesses, that means health insurance. You know the value of it, and your employees do too.

Get a quote for a small business health insurance plan that provides quality medical care and financial protection in case of unexpected injury or illness. You’ll be able to:

• Cover yourself and your employees, plus dependents
• Hire and retain the best employees by offering competitive benefits
• Choose from a broad selection of plans from brand-name insurers
• Get personal help and advice from licensed agents at no extra cost

We’ve made arrangements with eHealth to help you find a plan with the benefits you need at a price you can afford. Get a quote and see your coverage options .

Explore your health insurance options with eHealth

Special tax benefits may be available to some small employers who offer group health insurance coverage to their employees.

If you'd like to offer a total benefits package, consider vision or dental insurance as well. Learn more about your health insurance options .

Small business group health

Most Americans get their health coverage through group health insurance plans. Small business group health insurance plans generally work like the group health insurance plans offered by larger companies.

Monthly premiums are typically shared between the employer and employees, and dependents can usually be added to the policy as well.

eHealth works with a large variety of small business health insurance companies and has many plans to choose from in many states. eHealth can help you compare plans from different insurers in your area to find one that meets your needs and budget. The plans and insurers in each area vary, so it’s important to see what’s available to you.

Benefits of a group plan vs. an individual or family plan

Small business health insurance plans generally provide more robust health insurance coverage than what's available in the individually purchased health insurance market under the Affordable Care Act. However, when considered on a per-person basis, small business health insurance coverage is often less costly.

By sponsoring a group health insurance plan, you're not only providing coverage to your employees, but you may be finding a more affordable coverage option for yourself.

Self-employed

Even if you're self-employed or paying contractors on a 1099 basis (in some states), you may qualify for group health insurance coverage. Various factors affect eligibility in each state.

Self-employed people without employees may not be eligible for small group health insurance coverage and typically buy individual or family health insurance coverage on their own.

eHealth can help you apply for individual, family or group health coverage. In most states, it can help whether or not you qualify for income-based government subsidies under the Affordable Care Act.

When you're required to offer health insurance to employees

Under the Affordable Care Act, small businesses with fewer than 50 full-time workers are generally not required to provide group health insurance coverage. However, tax incentives may be available if they do.

Employees of small businesses who do not get employer-based group health insurance coverage may be subject to a tax penalty if they remain uninsured.

Insurance for your employees' pets too

In addition to health insurance, you can also offer your employees the option to protect their pets with Progressive Pet Insurance by Pets Best . It’s a voluntary benefit that protects their dogs and cats with customizable coverage at a great rate.

Employees can choose basic coverages for things like accidents and emergencies involving their pets or additional coverages for routine care and checkups.

Start a health insurance quote and protect your small business today

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Exploring coverage options for small businesses

How the affordable care act affects small businesses, required reporting about the marketplace to your employees, 90-day maximum waiting period, summary of benefits and coverage (sbc) disclosure rules, flexible spending accounts (fsas), workplace wellness programs, employer shared responsibility payment, reporting information on health coverage by employers and insurance companies.

• Certain employers, generally those with 50 or more full-time and full-time equivalent employees
• Health insurance companies
• Self-insuring employers of any size

Medical Loss Ratio rebates

If you already offer health insurance to your employees, irs resources for small businesses.

• "Affordable Care Act: What employers need to know (PDF)"
• Guide to tax provisions of the Affordable Care Act for employers
• Health care questions and answers for employers

More resources for small businesses