Small Business Health Insurance Plans: Learn about your options

Updated: November 9, 2022
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Do you have a small business? Do you need health insurance for your employees? If the answer is yes, then you’re in luck! You know that finding affordable health insurance can be a real challenge. There are a number of ways to make your small business health insurance easier, and we’ll discuss a few of them in this blog post.

Making the Best Small Business Health Insurance Plan Selections

 It will be easier for small business owners to choose health insurance if they are aware of the various kinds of group health insurance plans, but many of them still find it challenging to do so.

What benefits do different health insurance policies provide, which health insurance provider offers the most excellent coverage, and how much does small business medical insurance cost overall?

Even more alternatives, such as self-employed health insurance, health savings accounts, and the advantages of vision and dental, medical insurance, may be provided by some health insurance companies.

What to Know About Small Businesses Health Insurance Plans?

  • You must provide relatively affordable coverage after your company has at least 50 full-time employees. Affordable is described as not exceeding 9.5% of a household employee’s income. You might not be compelled to provide insurance if your company has fewer than 50 FTE, but state regulations differ.
  • You may qualify for the Small Business Health Care Tax Credit if your company purchases insurance through the Small Business medical Program (SHOP). If you pay average salaries below the maximum income threshold and have fewer than 25 full-time employees, you may be eligible for the credit. 50% of the premiums that your company has paid are credited.
  • A group health plan is available to any small business with at least one employee who isn’t a spouse.
  • Medicare, which is compatible with group health plans, is an option for older workers. The group health plan pays first if a business with 20 or more employees hires an employee or spouse. Aside from that, Medicare pays upfront. Any costs that Medicare or the group plan does not cover are the responsibility of the employee.

Small Businesses Health Insurance Options

Small-business proprietors must first understand the various kinds of small company health insurance plans before comprehending the various health insurance options and premiums. Several small company health insurance plans exist, each with unique advantages, deductibles, and prices.

  • PPO Plans
  • HMO Plans
  • POS Plans
  • HDHP
  • EPO Plans

 

best small business health insurance plans

 

Top 7 Small Businesses Health Insurance Companies

  • Humana
  • Kaiser Permanente
  • Cigna
  • UnitedHealthcare (UHC)
  • Blue Cross Blue Shield (BCBS)
  • Anthem
  • Aetna

 

Top Health Insurance for Small Businesses and Their Rating

Company

Customer feedback score

Coverage rating

Overall Score

Humana

5

5

4.8

Kaiser Permanente

4.5

4

4.5

Cigna

4.3

4

4.2

UnitedHealthcare (UHC)

4.8

4.8

4.6

Blue Cross Blue Shield (BCBS)

5

5

5

Anthem

3

4

4

Aetna

5

5

5

 

 

Humana

 High-quality health insurance coverage has been offered by Humana. It provides workplace plans in each of the 50 states as one of the biggest insurers in the country.

It offers simple, cheap small-business group health insurance policies that are suited for companies with 2 to 99 workers. Additionally, Humana provides services for organizations with more than 100 people.

Note: Ideal for extensive networks. 

Pros
Cons

It can increase the amount of dental, life, and vision insurance.

In some states, certain plans are not available.

provides a choice of options across the country

Has a variety of HMO and PPO policies.

 

 

What is covered by Humana for small business health insurance plans?

  • HMO
  • Dental
  • PPO
  • Pharmacy
  • Vision

 

Kaiser Permanente

It is one of the biggest non-profit health plans and managed-care organizations in the country. Kaiser Permanente offers coverage for major and small firms with 2 to 50 employees or 2 to 100 across California & Colorado.

It offers specialty services, including chiropractic, acupuncture, vision care, and dentistry, at discounted rates and universal health insurance for businesses of all sizes.

Note: Most suitable for specialized services.

Pros
Cons

Specialty services at a discount

Limited to eight states only

You are free to switch doctors at any moment.

Providers in a closed network

The majority of preventive healthcare services are free.

California and Colorado’s small business regulations are different.

 

What is covered under Kaiser Permanente for small-business health insurance plans?

  • HMO
  • PPO
  • Point-of-service (POS)
  • Dental
  • HRA
  • Vision

 

Cigna

Global health services provider Cigna collaborates with medical professionals to offer people, families, and companies access to high-quality, affordable care.

It provides a selection of relatively affordable HMO and PPO medical insurance plans for small businesses owner.

Policies could be joined with flexible spending accounts, health savings accounts, high-deductible- deductible health arrangements, and other items to enhance your total benefits package.

Before selecting Cigna as your provider, be aware of its restrictions because it only offers plans in 10 states.

Note: Most effective for global coverage.

Pros
Cons
Offers many different medical plans

Ten states are the only ones covered

With various add-on coverage

A high degree of satisfaction

 

 

What is covered by Cigna for small business health insurance plans?

  • Supplement plans
  • Dental
  • Health reimbursement arrangement (HRA)
  • PPO
  • HMO
  • Health savings account (HSA)
  • Flexible savings account (FSA)
  • Pharmacy

 

UnitedHealthcare (UHC)

Since its founding in 1977, UnitedHealthcare has offered health insurance to individuals, families, and employers.

Except for New York, its broad range of insurance plans satisfies almost all requirements, including group health insurance policies for proprietors of small businesses.

Employers have a selection of PPOs, high deductible health plans, and HMOs, some of which include tiered pharmacy benefit alternatives.

Additionally, small business owners can offer employee-funded perks or divide the price of life, dental, and vision insurance.

Note: Ideal for benefits paid for by employees.

Pros
Cons
Detailed group health options In New York State, coverage is unavailable
A vast network of service providers Specific programs aren’t available everywhere.
Extra benefits for workers  

 

What is covered by UHC for small business health insurance plans?

  • HMO
  • Dental
  • Vision
  • Pharmacy
  • High Deductible Health Plans
  • PPO

 

Blue Cross Blue Shield (BCBS)

Ever since 1929, Blue Cross Blue Shield has offered reliable medical insurance. All 50 states are covered by its plans, however not all of them are offered in every state, and local agencies have different prices and coverage.

Most medical professionals take BCBS insurance plans, and BCBS has wide national networks.

Note: Most effective for global coverage.

Pros
Cons
Offers protection in all 50 states The prices and coverage of regional organizations differ.
BCBS is accepted by almost all healthcare providers. Not all states offer specific insurance policies.

 

What is covered under BCBS for Small-Business Health Insurance Plans?

  • PPO
  • HMO
  • Dental
  • Vision
  • High-deductible health plans

 

Anthem

For individuals, families, and companies in 25 states, Anthem offers a broad selection of integrated health care plans.

Both small businesses with 2 to 50 employees and large organizations with 51 or more employees can choose from a wide variety of PPOs, HMOs, and high-deductible health plans from Anthem.

Its provider network is among the biggest in the nation. Many health plans can be combined by businesses with pharmacy benefits, while you can also add reasonably priced vision, dental, and supplemental insurance.

 Note: Best for combining plans.

Pros
Cons
Plans in 25 states are available The plans provided by subsidiaries differ.
There are numerous add-on coverage options available. Obtaining a BBB rating of “F.”
Extensive provider network Colorado has different rules for business plans.

 

What is covered by Anthem for small business health insurance?

  • Dental
  • Supplement plans
  • HMO
  • High-deductible health plans
  • PPO
  • Vision

 

Aetna

One of the nation’s oldest and most well-known insurers, Aetna offers a variety of employment plans.

Small-business health insurance plans from Aetna are adaptable, comprehensive, and cost-effective. Aetna’s Health maintenance organization (HMO), indemnity, exclusive provider organization (EPO), the preferred provider organization (PPO), and stop-loss choices are among the small-business group health insurance policies that Aetna offers.

Vision, Dental, pharmacy, and supplemental insurance are examples of ancillary plans. Not all perks and programs are accessible in all states.

Note: Aetna is for the “Best possible alternatives”. 

Pros
Cons
Plans are accessible in all states. In certain states, some plans contain exclusions and limitations.
Numerous types of medical plans for companies Not every state offers all types of coverage.
Bundled benefits to control expenses  

 

What is covered by Aetna for small business health insurance?

  • Dental
  • HMO
  • Pharmacy
  • Vision
  • Indemnity
  • EPO
  • Stop loss
  • PPO
  • Supplemental

 

small business health insurance plans

 

Where to Buy the Best Small Business Health Insurance Plans?

A single insurance plan or a variety of plans that are available to employees may be included in small-business group medical plans.

The rates for group health insurance plans are far less than those for conventional individual health care policies, making it one of the most cost-effective plan options.

You have the following choices for supplying small businesses with affordable group health insurance:

  • An agent or a broker
  • SHOP
  • An insurance carrier
  • Through the health care marketplace
  • Health reimbursement arrangements

 

Broker or agent

While independent agents and brokers can sell for numerous insurance carriers, captive brokers and agents can only sell for one.

You’ll probably have more options for insurance plans if you choose an independent agent because they can provide rates from many companies.

 

SHOP

In order to make it easier for small businesses, generally those with one to 50 employees to find and purchase cheap small business group Medicaid policies online, SHOP was developed in tandem with the ACA.

The Small Business Health Care Tax Credit is typically only available to owners of small businesses through SHOP plans.

 

A provider of insurance

Directly purchasing group insurance from an insurance provider eliminates the middleman. Typically, a carrier’s website allows employers to look for and buy medical coverage.

 

Using the health care industry

You can sign up for a health option through the Health Insurance Marketplace if you operate a business but have no workers. Employees without access to the group Medicare program can also register on govt.

 

Health insurance reimbursement agreements

Even though HRAs aren’t standard group health plans, you could employ them to assist employees in paying their healthcare bills.

You can find different HRAs through a broker, agent, or insurance company, depending on the size of your business.

How to Rate Companies for Small Business Health Insurance?

Financial stability

Based on the A.M. of the insurance company, the financial strength rating is determined. The highest score for financial stability. A.M. An insurer’s capacity to fulfill ongoing obligations is rated by best, a credit rating organization focusing on the insurance sector.

 

Client satisfaction

National Committee for Quality Assurance (NCQA), The Better Business Bureau (BBB), and Consumer Affairs ratings of an insurer are used when determining the customer satisfaction rating. Customer complaints and satisfaction scores are used to construct these ratings.

 

Value

Based on monthly premiums and out-of-pocket expenses, an insurer’s overall value is determined by the value rating.

 

Insurance

The insurer’s coverage options, plan options, and network size is considered when determining the coverage rating.

Which Company Offers the Best Price for Small Business Health Insurance Plans?

If you’re a small business owner looking for the best small business health insurance alternatives, you probably want to know where to locate cheap health plans and how to get the most for your money from group insurance.

Then these six providers can give you the best coverage at low prices.

  • Blue Cross Blue Shield
  • Kaiser Permanente
  • Anthem
  • Humana
  • Aetna
  • UnitedHealthcare

 

Small Business Health Insurance FAQs

Do small businesses have to provide health insurance?

According to the ACA, small firms are exempt from having to provide health insurance to employees. No company is actually required to purchase insurance in the US; rather, major companies that fail to adhere to the ACA’s requirements for healthcare insurance must pay an IRS no-coverage fine as part of their tax return.

How much does small business health insurance cost?

For an individual and a family, the average monthly cost of health insurance in the country in 2020 is $456 and $1,152, respectively.

How to get health insurance for a small business?

Small company health insurance helps organizations offer employees more affordable access to medical insurance. Since many employees from the organization are usually enrolled in these group insurance, lower prices or better coverage are advantageous to all parties.

What is the best health insurance for a small business?

  • UnitedHealthcare
  • Kaiser Permanente
  • Humana
  • Blue Cross Blue Shield
  • Aetna
  • Cigna
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