Choosing A Small Business Health Insurance Plan

How Do I Choose A Small Group Health Insurance Plan?


As a small business owner, you have a few options when it comes to selecting small business health insurance.

  1. Find a plan that fits your business through a private insurer like Anthem.
  2. Use a licensed agent or broker to help you compare plans.
  3. Find affordable and flexible health plan options for your company through the Small Business Health Options Program (SHOP) Marketplace, which was created through the Affordable Care Act (ACA).

What To Consider When Selecting A Plan


When selecting a small business health insurance plan, consider what your employees will need for coverage compared to your monthly budget. Small business owners typically pay at least 50% of the premium for employees. Small business owners provide health insurance because coverage helps attract and retain employees, and it also ensures a healthier and more productive staff.



How Many Employees Do You Need To Offer Small Business Health Insurance?


Along with the number of people you employ at your business, there may be other requirements for small group insurance eligibility. You must generally:

  1. Have 2–50 full-time employees1 (other than spouses, family members, or partners).
  2. Offer coverage to all full-time employees working 30 or more hours per week.
  3. Enroll at least 70% of the employees in your insurance plan.
  4. Have a physical work site within the state where you purchase your plan.


What Is The Average Cost Of Small Business Insurance?


The cost of small business health insurance will depend on the type of plan or plans provided by your business. Consider how much you want employees to contribute to help share the cost and how much coverage will be needed for all enrolled employees. Group health insurance plans are evaluated by looking at the total group of employees in your company covered under the plan.



How Can I Lower My Small Business Health Insurance Costs?


Under the Affordable Care Act, small business owners who have fewer than 25 full-time employees, who pay average wages of $56,000 or less, or who cover at least half of their employees’ premiums may be eligible for tax credits for their small group health insurance plans. These credits can lower the cost of your small business health insurance.



When Can I Enroll In A Small Business Health Insurance Plan?


There is no limited enrollment period for small business health insurance and employers can shop for a new plan any time of year. If you enroll in a plan by the 15th of each month, coverage can usually begin on the 1st of the following month.



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1Number of eligible employees may vary by state.