Health Insurance for Small Business Owners

Thursday, March 14, 2024 17:28 Posted by Admin

Health insurance for small business owners allows employers to offer more affordable and more accessible coverage to their employees. In most cases, small business health insurance is a group policy, meaning numerous employees are enrolled. This allows every “member of the group” to get better coverage or lower insurance rates. These particular policies are personalized to fit the needs of small companies, especially for those who are looking to stand out from their larger competition by offering excellent benefits packages to their current and prospective employees.

When it comes to choosing the best health insurance provider for your small business, as the business owner, you want to look out for those that offer competitive rates, adaptable coverage options, availability, and access to a comprehensive network of medical professionals.

With that said, let’s take a look at some of the top providers that offer health insurance for small business owners. That way, you can come away from this article with a better understanding as to which option may be the best choice for you and your employees.

Blue Cross Blue Shield

Blue Cross Blue Shield is one of the largest health insurance providers in the nation, offering a wide variety of coverage options to most small business owners. They are a nationwide association that provides coverage in all 50 states, including Puerto Rico and Washington D.C. The company is popular among businesses that have fewer than 50 employees, as they currently cover nearly seven million people that work for small businesses.

Although Blue Cross Blue Shield has a number of coverage options, BlueCard PPO leads the pack with its extensive network that includes 95% of all physicians and 96% of all hospitals in the United States.


Founded in 1977, UnitedHealthcare (UHC) is a solid choice for most small businesses that need health insurance coverage. The company has a large number of in-network providers and countless facilities throughout the nation. Each year they make a massive investment in technology and innovation, which allows them to stay on top of the ever-changing needs of consumers.

UnitedHealthcare’s small business programs have a host of distinctive tools. Members can use their Virtual Visits to connect with their doctor and even get a prescription. Whereas, their Symptom Checker feature utilizes artificial intelligence to give insured individuals general medical advice. The company is located in all 50 states and also operates in over 300 additional countries.

If your business has between two and 50 employees, you can navigate UnitedHealthcare plan options online. Simply answer a couple questions and receive a customized recommendation, or get in touch with a local representative.


Although Cigna is only available in 20 states, they offer a nice range of health insurance options for small business owners, including flexible deductibles and premiums. The company was founded in 1792 and has since then grown into a global corporation in more than 30 countries. Their network includes 1.5 million relationships with clinics, facilities, and providers and they have 180 million customer and patient relationships worldwide.

Cigna is licensed to offer health insurance coverage in Arizona, Colorado, Florida, Illinois, Kansas, Missouri, North Carolina, Tennessee, Utah, and Virginia. They offer small business health insurance in these states for small businesses that have over 50 employees. Though, for those with as few as 25 employees, they also have administrative services for self-funded plans. When it comes to group health insurance plans, Cigna offers the following:

  • Cigna SureFit: Tailored plans in distinct locations.
  • Cigna Group Medicare Plans: Plans crafted to meet the unique needs of your retired employees and organization.
  • HMO: High-quality, cost-effective, local providers.
  • Indemnity Plans: Network savings policies with no referrals required.
  • LocalPlus: A more limited, focused network of cost-effective providers.
  • Network: High-quality, cost-effective, local providers.
  • Open Access Plus (OAP): Nationwide network with reductions.
  • PPO: Their extensive, nationwide network that is similar to OAP, but has more flexible options for out-of-network health care.


Aetna has been in business since 1853 and is recognized for its excellent customer service and tax-advantaged savings plans. Most small businesses value Aetna’s high-deductible health insurance plans. Although Aetna is not available in every state in the U.S., they have a large global footprint of more than 5,700 hospitals and over 700,000 primary care physicians. Depending on where you’re located, Aetna may offer one, two, or all of the following plans (in addition to others):

  • Aetna HealthFund One-to-One: Choose one of Aetna’s high-deductible health plans and combine it with a health savings account (HSA) or health reimbursement arrangement (HRA).
  • Traditional Choice Health Insurance Plan: The option to go to any facility or provider you choose. Though, you may have to pay upfront for the services and then submit a claim for reimbursement.
  • Open Choice Plan: Go to any healthcare provider of your choice, with no referral required. In-network visits offer the greatest discounts.

Aetna has four unique health expense fund options for small business owners, which can give your employees wonderful tax-advantaged savings:

  • HealthFund Health Savings Account (HSA)
  • HealthFund Health Reimbursement Arrangement (HRA)
  • HealthFund Flexible Spending Account (FSA)
  • Retirement Reimbursement Arrangement (RRA)

The benefit of these health expense funds is that participants can save their pre-tax money to be used down the line on future, qualified medical expenses.


With its reputation for top-notch customer service and associates always standing by to answer questions quickly, Humana is considered by many to be the best health insurance providers for small businesses. The company has an extensive provider network, consisting of around 3,000 hospitals and 350,000 medical providers. They are one of the country’s largest for Medicare and individual plan options, but Humana also offers group coverage to small businesses, that have between two and 50 employees, in 18 states.

Humana offers five coverage plans for businesses, whether small or large:

  • Canopy: Ideal for those with marginal health needs. Preventative care is no-cost, premiums are low, and there’s only a $20 copay to visit a primary care physician.
  • Copay: Includes copays for pharmacy services, telemedicine, as well as preventative care.
  • Efficiency: This option has Humana’s lowest premium and preventative care is free so long as you visit in-network providers.
  • HDHP: Stands for high-deductible health plan. There are no copays and most health insurance plans can be paired with a health savings account (HSA).
  • Simplicity: This option has no deductible for in-network visits, copays are very forthright, and preventative care is no-cost.

Keep in mind that, the cost of the aforementioned plans can vary based on where you are located.

Kaiser Permanente

Founded in 1945, Kaiser Permanente is one of the leading healthcare providers in the country and the largest insurer in the state of California. With its long history of excellent customer service and user-friendly website with plentiful educational resources, Kaiser is the ideal choice for many people. They offer coverage in California, Colorado, Georgia, Hawaii, Maryland, Oregon, Virginia, Washington, and Washington, DC, and currently service 12.4 million people.

Kaiser is known for emphasizing preventative care, with its electronic system that sends frequent reminders for screenings and their cancer screening rates are above the nationwide average. The company’s small business insurance options focus on businesses that have been two and 100 employees. There are six options in total for small businesses, with costs that vary based on state.

  • Traditional HMO plans
  • Deductible HMO plans
  • PPO plan
  • Point of Service (POS) plans
  • HRA and HSA-Qualified plans
  • Deductible HMO with HRA plans

These plans are then further broken down into four coverage categories: bronze, silver, gold, and platinum. Each category has a range of copayment, deductible, and coinsurance options to choose from.

How to Choose the Ideal Health Insurance for Small Business Owners

As a small business owner, it is crucial that you analyze the health insurance needs of your team. After all, offering health insurance can be incredibly beneficial for attracting and retaining high-quality employees. Choosing the ideal health insurance for a small business means vigilantly considering a number of factors regarding available coverage in your area. The factors you should consider include:

  • Available plans. Consider if the policy options include HMO, PPO, or other service options. You also want to think about both individual and family access.
  • Deductibles and copays. Think about how much your employees will have to pay out of pocket before the insurance takes over (deductible) and the cost required at the time of each service (copay).
  • Provider reputation. The reputation of the insurance provider that you choose should also play into your decision. Does the company have good financial ratings? Do they have good reviews? And, is their claims process simple?
  • Coverage limitations. This means how much coverage is provided (the maximum) and the coverage for each specific service, whether it’s preventative, specialist care, or something else.
  • Physician coverage. Are your employee’s physicians in-network? You also want to determine if the plan you choose has enough flexibility to meet your employee’s unique needs. If your employee’s do have preferred healthcare providers, you want to ensure that they are in-network.
  • Coverage exclusions. Some health insurance plans exclude coverage for certain things, like pre-existing conditions. Consider all exclusions and how they may affect your employee’s health needs.
  • Cost of the policy. Arguably most importantly, think about what the cost of the policy is (the premium). Some companies may pay some or all of the employee’s costs. Whereas, others simply obtain the policy and employees are responsible for paying for the plan. In either case, it’s important that the policy is affordable for both the company and its employees.

Choosing the right health insurance for your small business isn’t an easy task. That’s where the professional brokers at Taylor Benefits Insurance Agency come in! We have been helping small business owners like you for over thirty years. We can help you find the ideal health insurance plan that fits the unique needs of your company and its workforce.

So, what are you waiting for? Don’t hesitate – contact us now to get the process started!

Written by Todd Taylor

Todd Taylor

Todd Taylor oversees most of the marketing and client administration for the agency with help of an incredible team. Todd is a seasoned benefits insurance broker with over 35 years of industry experience. As the Founder and CEO of Taylor Benefits Insurance Agency, Inc., he provides strategic consultations and high-quality support to ensure his clients’ competitive position in the market.

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