Cheap Group Health Insurance | Small Business Health Insurance Plans

Wednesday, December 28, 2022 10:56 Posted by Admin

As a business owner, one of your responsibilities is to provide affordable group health insurance to your employees. Every large and small company is subject to the provisions of local, state, and federal regulations governing health insurance. Starting with the ACA, but supplemented in many areas by regional rules, health care laws impact the benefits you must offer.

First, large companies must comply with the ACA mandate regarding coverage and affordability. Small companies aren’t required to provide insurance policies but may be eligible for tax breaks and other incentives if they do so.

Even more important is the effect that a high-quality health plan can have on the company’s ability to recruit and retain skilled workers.

One of the most effective ways to attract quality workers is to offer a comprehensive,  affordable group health insurance plan that stands out from the employee benefit packages offered by competitors.

An insurance broker can help you accomplish this by providing you access to excellent pricing and service from leading insurance companies specializing in group health insurance plans.

What You May Include In Your Flexible and Low Cost Group Health Plan

  • Health Maintenance Organization plans (HMO)
  • Preferred Provider Organizations plans (PPO)
  • Group managed care & indemnity plans
  • Employee health savings accounts (HSA)
  • Flex spending and health reimbursement accounts
  • Group medical & dental insurance
  • Vision coverage and eye care plans
  • Employee benefits & health insurance plans
  • Short & long-term disability insurance
  • Retirement plans & 401(k)
  • Section 125 cafeteria plans
  • Group life insurance & long-term care
  • Workers’ compensation programs

You will likely find that the more employees your business can offer health insurance for, the lower the rates available will be. This means that health coverage is more affordable for everyone who chooses to take advantage of it.

How an Affordable Group Health Insurance Plan Protects Your Employees

There are many ways affordable group health insurance plans can protect your employees. A healthcare policy provides them with assistance and financial relief for ambulatory services, emergency care, maternity and infant health coverage, prescription drugs coverage, pre-existing conditions, preventive care,  and other benefits that can contribute to the overall good health of the employee and their family.

In addition, if your workers have access to affordable medical care, you may observe a decrease in illness-related absences.

How Does Small Business Health Insurance Work?

According to the Affordable Care Act (ACA), a small business employs fewer than 50 full-time employees. Unless state or local laws add a requirement, small companies aren’t obligated to offer health insurance.

Generally, when it is offered, the company buys insurance coverage from a private insurer. Then the business determines how much of the premium the employees must pay to participate in the program.

If there are co-pays, deductibles, and costs for other services not covered, those expenses are the employee’s responsibility.

Steps to Choose the Right Small Business Insurance Plan

Assess your needs

Small business managers may want to consider the following factors before choosing a health plan.

  • Your health plan must suit the diverse needs of your employees and their dependents. That includes their financial capacity and the inclusion of medical services that matter to them.
  • How much cost sharing can be done between the employees and the employer? Every company should have a healthcare budget and endeavor to obtain policies that are affordable for both the business and the employees.
  • It is important to analyze the benefits necessary for the owner and the employees. An attractive policy will reflect the employees’ needs as well as the owner’s.

Comparison of Small Business Health Insurance plans

Many factors need to be considered before purchasing any small business health insurance option. We suggest some important factors to be considered before opting for any health plan.

  • Health Insurance Premiums: Always check on the cost of the health care policy and how much monthly premium cost your employees need to pay. Many small companies pay a portion of the premium or even the entire amount. The goal is to obtain a policy that makes sense for both employees and the company.

  • Deductibles, Copay, and coinsurance: Deductibles are the amount paid before any insurance kicks in. Copays or coinsurance are the amounts paid at the time the employee uses the plan.
  • In network health care hospitals: The ability to obtain service from known providers is important to your employees. If you are considering a new health plan, it’s a good idea to ensure that it offers access to trusted hospitals and doctors in your vicinity.
  • Types of plans available from the insurance company: Before choosing health insurance for a group, investigate whether the plan has both individual and family coverage. Make sure you consider options such as PPOs and HMOs.
  • Coverage options and limits: Carefully evaluate the coverage options provided in your health plan. The policy should include preventative care, prescription drug coverage, and specialist referrals. Also, compare prices for different plans beforehand and consider whether it’s feasible to add services such as dental and vision.
  • Reputation: The reputation of the insurance company is of prime importance in choosing a policy. The ease of submitting claims, the company’s settlement history, and its professional reviews are all important elements to consider.

Small Business Health Insurance Enrollment Process

  • The open enrollment process starts with getting the employees and their dependents enrolled in the new policy. A high-quality insurance provider will offer help in accomplishing the transition.
  • The insurer’s licensed agents are responsible for providing sufficient support and resources to make the enrollment process smooth and successful for all new subscribers.

Small Business Health Insurance Options

Thanks to the ACA, the Small Business Health Options Program (SHOP) helps small businesses obtain insurance from a reputable company. As a result, employers have access to more options at affordable prices than ever before.

SHOP also provides access to and information about the Small Business Health Care Tax Credit, which can help with expenses.

You can also choose an insurance broker like Taylor Benefits Insurance. A qualified broker will research and compare different options for you without any extra cost, so you can choose the best program for your company.

The ACA helps small businesses choose the right plan by categorizing each one according to the value it offers. The options are bronze,  gold, silver, and platinum. Each plan comes with different premiums, copays, deductibles, and out-of-pocket limits. One business might need to choose a more comprehensive plan that has a higher premium, while other companies may be looking for a smaller monthly premium. The selection allows each business to meet its needs.


High-quality health insurance is vital for small businesses and for those who are self-employed. It’s essential to research the plans’ services before choosing one.

If your business has more than 50 employees, you are subject to the ACA mandate requiring that you offer coverage to the workforce. In that case, finding an affordable policy is essential.

But, even if your company is smaller, take a look at the options for coverage using SHOP. Most employees appreciate the efforts made by their employers to provide access to affordable insurance coverage.

Frequently Asked Questions (FAQs)

When must small business owners provide a health plan to their employees?

In the United States, the Affordable Care Act (ACA) introduced requirements related to employer-provided health coverage. Here are some key points to understand:

  1. Employer Mandate: Under the ACA, businesses with 50 or more full-time equivalent (FTE) employees are required to offer health insurance to at least 95% of their full-time employees and their dependents up to age 26 or face a penalty. This is sometimes referred to as the “employer mandate” or “play or pay” provision.
  2. Small Business Health Options Program (SHOP): The ACA also created the Small Business Health Options Program (SHOP) for small employers (those with 1-50 employees). While small businesses are not mandated to offer health insurance to their employees, SHOP provides an avenue for them to do so if they choose.
  3. Tax Credits: Small businesses with fewer than 25 employees, paying average annual wages below a certain amount, and that provide health insurance for their employees, may qualify for a small business health care tax credit. The tax credit is designed to assist and incentivize these small businesses to offer health coverage.
  4. State Differences: It’s also worth noting that some states may have their own health coverage requirements or programs for employers, which could differ from federal requirements. Always check with state regulations in addition to federal ones.
  5. Changing Nature of Requirements: Laws and regulations regarding health coverage and employer obligations can evolve. It’s essential for business owners to stay updated on any changes at both the federal and state levels.
  6. Other Considerations: Even if not required by law, offering health insurance can help businesses attract and retain employees. It’s an essential part of many compensation packages and can give businesses a competitive edge in the job market.

what are the advantages of small business health insurance?

Small business health insurance offers a variety of advantages, not just for the employees, but also for the business itself. Here are some of the primary advantages:

  1. Employee Attraction and Retention: Offering health insurance can make a small business more attractive to potential employees and can help in retaining top talent. Many employees view health benefits as a significant factor when considering job offers.
  2. Improved Employee Health and Productivity: Providing health insurance can lead to healthier employees, who can take preventive care measures, leading to reduced absenteeism and better overall productivity.
  3. Tax Advantages: Small businesses that provide health insurance can often deduct the premiums they pay on qualifying group health plans. Furthermore, under the Affordable Care Act (ACA), small businesses that qualify might be eligible for a tax credit if they offer health insurance to their employees.
  4. Employee Morale and Job Satisfaction: Offering health benefits can boost employee morale, as it shows the business cares about its employees’ well-being. This can lead to increased job satisfaction and overall positive company culture.
  5. Reduced Business Risk: Having insured employees means that they are more likely to get preventive care and early treatments, reducing the chance of extended illnesses or complications which can disrupt business operations.
  6. Group Buying Power: Even though you’re a small business, buying health insurance as a group can offer economies of scale. Premiums for group policies, in many cases, are less than the total premiums for individual policies for the same number of people.
  7. Predictable Costs: With a group health insurance plan, businesses have a clearer picture of their monthly or annual costs, making budgeting easier.
  8. Customization of Plans: Some insurance providers offer flexibility, allowing businesses to select or customize plans that fit the needs of their workforce and budget.
  9. Employee Financial Security: Health issues are a leading cause of financial stress for many people. Offering health insurance provides financial security for employees, which can, in turn, reduce stress and improve overall well-being.
  10. Legal Compliance: Depending on the size and location of the business, offering health insurance might be a requirement. Complying can help avoid legal penalties.

What are the different types of small business health insurance plans?

There are many different types of small business health insurance plans available, but the four most common are:

  • Preferred provider organization (PPO) plans: PPOs offer a wider network of providers than HMOs, so you have more flexibility in choosing doctors and hospitals. However, you’ll typically pay more out-of-pocket costs for care outside of the network.
  • Health maintenance organization (HMO) plans: HMOs have a narrower network of providers, but they typically have lower out-of-pocket costs. You’ll need to see a doctor in the network for most care, and you may have to get a referral to see a specialist.
  • Exclusive provider organization (EPO) plans: EPOs are similar to HMOs, but they have an even narrower network of providers. You’ll typically pay more out-of-pocket costs for care outside of the network than you would with an HMO.
  • High-deductible health plan (HDHP) with a health savings account (HSA): HDHPs have lower premiums than other types of plans, but you’ll have to pay a higher deductible before your insurance coverage starts. You can contribute money to an HSA to help pay for medical expenses, and your contributions are tax-deductible.

The best type of plan for your small business will depend on the needs of your employees and your budget. You’ll need to consider factors such as the size of your business, the location of your employees, and their health care needs.

Here are some other things to consider when choosing a small business health insurance plan:

  • Premiums: The monthly premiums are the amount you pay for the plan.
  • Copays: Copays are the amount you pay for a doctor’s visit or prescription.
  • Deductibles: The deductible is the amount you have to pay out of pocket before your insurance coverage starts.
  • Coinsurance: Coinsurance is the percentage of the cost of care that you pay after you’ve met your deductible.
  • Out-of-pocket maximum: The out-of-pocket maximum is the most you’ll have to pay in medical expenses in a year.

It’s important to compare plans carefully to find the one that offers the best coverage and value for your small business. You can get quotes from different insurance companies and use a health insurance calculator to help you compare plans.

How do you know if your small business is eligible for SHOP?

Every employer with 1-50 employees qualifies to use the SHOP marketplace to obtain insurance.

Consult your tax advisor or your insurance broker about how much you may be able to save by offering a qualified plan to your employees.

What is the cost of group health insurance for small businesses?

The cost of offering insurance will vary according to the coverage selected by the business, as well as by the employee demographics.

Your company can decide how much of the premium to pay and how much the employee is responsible for. In many cases, a small business will pay half of the cost, and the employee pays the other half directly to the insurer. Some companies pay the entire premium for the employee and part (or none) of the cost to enroll a dependent.

When you choose a health insurance plan, you can decide how much of the premium cost you will pay for your employee and their dependents.

Do group health insurance plans include dental & vision?

Generally, dental and vision are not covered in any health plan, but they can be added for an additional charge. Check with your selected insurer to determine whether they can add these benefits.

Can I reimburse my employees for the cost of a private insurance plan?

While small companies do not have a requirement to pay for their employees’ healthcare costs, a small employer can still help. The business can sponsor a Qualified Small Employer Health Reimbursement Account (QSEHRA), which allows the company to offer a tax-free contribution toward the worker’s expenses in obtaining an eligible plan.

Also, any size company can provide an ICHRA (Individual Coverage Health Reimbursement Arrangement) to assist workers with the expense. These accounts may satisfy the employer mandate for large companies.

How many employees does a small business have to have to provide health insurance?

Any company with 50 or more workers is subject to the ACA requirements. In some states, smaller  businesses must also offer coverage.

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