Health Insurance

Small businesses are the backbone of the American economy. According to the Small Business Administration, small businesses account for 99.7% of all employer firms in the United States, and they create 60% of all new jobs each year. According to MetLife’s 2022 Employee Benefit Trends Report, eight out of ten employees see health insurance as a must-have. In order to retain employees and attract new talent in this competitive landscape, you need to offer a comprehensive health plan.  

If your business has fewer than 50 employees, there is no law requiring you to offer group health insurance. However, since studies about employee benefits also show that this benefit is what workers desire most, many choose to offer coverage. Group health plans show employees that their employers care about their well-being outside of the workplace and in some instances can be the deciding factor between two competing job offers. 

What Are The Requirements For Employers?

In order to qualify for small business health insurance, employers need at least one employee, which is not a spouse or other family member, and they must pay at least 50% of the monthly premium amount for your employees—that’s it.

Under the Affordable Care Act (ACA), employers with more than 50 employees are the only ones required to offer affordable health insurance. The ACA defines affordable as no more than 9.78% of the employees’ income. There is also a monetary penalty for employers with 50+ employees that do not offer health insurance. 

How Much Does Small Business Health Insurance Cost?

According to the Kaiser Family Foundation’s 2022 Employer Health Benefits Survey, the average premium cost for employer-sponsored health insurance was $7,911 for single coverage and $22,463 for a family’s coverage. Employees contributed an average of $1,327 towards the premium cost for single coverage and $6,106 towards the premium for family coverage.

How Can You Save On Small Business Health Insurance? 

Many employers ask employees to pay for a portion of their monthly premiums from their paychecks, but it’s significantly cheaper than an individual health insurance plan. When your company offers health insurance, it reduces your employees’ burden and leaves your workers with more take-home income than if they paid for their own plan—a win/win situation!

You can also qualify for the Small Business Healthcare Tax Credit, worth up to 50% of the costs you pay for your employees’ premiums.

If your business ends up not qualifying for the Small Business Healthcare Tax Credit, you can still deduct the cost of contributing to employee premiums from your federal taxes as a business expense.

Does Health Insurance Increase Productivity?

When employees have healthcare, they might take less sick days because they can proactively attend to their medical needs. They can be more productive and have less interference with their work schedules.

Where Do You Get Small Business Health Insurance?

Use an insurance broker

Working with an insurance broker can be the time, and effort, saving solution for obtaining comprehensive coverage relevant to your business. Not only will they guide you through paperwork, ensuring compliance with applicable laws, but brokers also provide access to up-to-date policies that are tailored for your needs. 

Furthermore, their role does not end when a suitable plan is found –they offer guidance on implementation of said plans as well as renewal services down the line; all at no upfront cost! To get paired with an insurance broker, you can call us at (877) 658-2374 or enter your zip code in the bar above then answer a few questions to get started. 

The Small Business Health Options Program (SHOP)

SHOP is a federal database for finding comprehensive health insurance coverage to suit your needs. With this site you can quickly compare plans from top carriers, with features such as tiered options and standard benefits like medication and hospital care included. 

Contact carriers directly

If you’ve done your research and have identified the insurance providers and plans that most effectively cater to your business needs, connecting directly with those companies may be beneficial. You can reach out for up-to-date and accurate coverage information. Tap into their expertise on the most current policies available, so you can make informed decisions about your company’s medical benefits!

Some carriers require business owners to use a broker, but others like UnitedHealthcare and Aetna, don’t make employers use a third party. To see which plans you qualify for, consider using a quote comparison site like when researching eligible insurance options.

Consider a PEO

PEOs provide an attractive alternative for businesses looking to reduce their costs. Not only do they offer competitive rates on health insurance, but they also offer invaluable services such as payroll processing, recruiting and tax filing – simplifying the administrative burden of running a business.

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In conclusion, a group health insurance plan is an important part of a comprehensive benefits package for any small business, but we know finding coverage can be overwhelming and time consuming. Our agents are specially prepared to navigate insurance and will make sure you’re getting the exact plan to fit your budget and needs.

Give us a call at (877) 658-2374 or enter your zip code in the bar above to get started. 

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