Finding the best health insurance for small business requires balancing cost, coverage, and flexibility for your team’s unique needs.
Key Takeaways
- Standard group health insurance like Blue Cross Blue Shield offers comprehensive coverage with large provider networks.
- Level-funded options through companies like Allstate provide predictable costs with potential savings for small business teams.
- HSA-qualified healthshare plans like HSA Secure deliver affordable coverage paired with tax-advantaged savings for small businesses.
- Catastrophic healthshare plans such as JHS Community focus on major medical expenses at lower monthly costs for small business groups.
- Traditional group insurance options vary by business size, employee count, and state regulations.
Why “The Best” Plan Differs for Every Business
No single health plan works perfectly for every small business owner.
Choosing the best health insurance for a small business requires understanding your financial situation, employee needs, and growth plans. Working with a qualified advisor helps navigate complex options and ensures you make informed decisions that protect both your business and your team.
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Top 5 Health Insurance Options for Small Businesses
Here are the leading health insurance solutions we recommend for small businesses with employees in 2025.
Standard Group Health Insurance (Blue Cross Blue Shield)
Traditional group health insurance remains the gold standard for comprehensive coverage.
Blue Cross Blue Shield operates as a network of 36 independent companies serving all 50 states. Their extensive provider network includes over 90% of the nation’s doctors and hospitals, ensuring your employees have access to quality care wherever they’re located.
Key Benefits:
- Nationwide coverage and provider access
- Established claims processing and customer service
- Variety of plan options from basic to comprehensive
- Meets all ACA compliance requirements
Best For: Businesses with 2-50 employees seeking traditional insurance benefits and maximum provider choice.
Level-Funded Health Plans (Allstate)
Level-funded plans combine the predictability of traditional insurance with potential cost savings.
These plans work by setting a fixed monthly payment that covers expected claims, administration, and stop-loss insurance. If your group has lower-than-expected claims, you receive a refund at year-end. Allstate offers competitive level-funded options with transparent pricing and comprehensive reporting.
Key Benefits:
- Predictable monthly costs with potential refunds
- Claims transparency and detailed reporting
- Stop-loss protection against catastrophic claims
- Customizable plan designs
Best For: Small businesses with relatively healthy employees looking to control costs while maintaining traditional insurance structure.
HSA-Qualified Healthshare (HSA Secure)
HSA Secure combines health sharing principles with HSA-qualified high-deductible health plans.
This innovative approach allows members to contribute to tax-advantaged Health Savings Accounts while participating in a health sharing community. Members share eligible medical expenses while building long-term healthcare savings through their HSA contributions.
Key Benefits:
- Triple tax advantage of HSA contributions
- Lower monthly sharing amounts than traditional insurance
- Community-based approach to healthcare costs
- Flexibility in provider choice
Best For: Health-conscious small business owners and employees who want to build long-term healthcare savings while reducing monthly costs.
Catastrophic Healthshare (JHS Community)
JHS Community focuses on sharing major medical expenses while keeping monthly costs low.
Members contribute monthly sharing amounts significantly lower than traditional insurance premiums. The plan emphasizes sharing catastrophic medical events while encouraging preventive care and healthy lifestyle choices through community support.
Key Benefits:
- Significantly lower monthly costs
- Focus on major medical expense sharing
- Community support and wellness programs
- No provider network restrictions
Best For: Young, healthy small business teams prioritizing major medical protection over routine care coverage.
UnitedHealthcare Group Plans
UnitedHealthcare offers the largest provider network in the country with flexible plan options.
With over 1.3 million providers nationwide, UnitedHealthcare ensures your employees have access to care virtually anywhere. They offer both traditional group plans for businesses with 2-50 employees and comprehensive options for larger organizations.
Key Benefits:
- Largest provider network in the United States
- Available in all 50 states
- HSA-qualified high-deductible options available
- Strong customer service and digital tools
Best For: Businesses prioritizing maximum provider choice and nationwide coverage for traveling employees.
Compare Pricing on the Best HealthShare Plans Available
Comparing Costs and Coverage
Understanding the financial impact helps determine the best health insurance for small business teams.
Traditional group insurance typically costs $300-800 per employee monthly, depending on coverage level and location. Level-funded plans offer similar pricing with potential savings for healthy groups. Healthshare options like HSA Secure and JHS Community generally cost 30-50% less than traditional insurance while providing meaningful protection.
Consider total costs including premiums, deductibles, and out-of-pocket maximums when evaluating options. Factor in tax benefits, especially business tax deductions for employer-provided health insurance premiums.
Making the Right Choice for Your Business
Selecting the best health insurance for small business starts with understanding your team’s specific needs and budget.
Consider your employee demographics, growth plans, and financial goals when evaluating options. Standard group insurance offers maximum coverage and compliance, while level-funded plans provide cost transparency. Healthshare options deliver affordability with community support.
Ready to explore your options? Schedule a free consultation with our Personal Benefits Manager to receive personalized guidance on choosing the best health insurance for your small business. Our experts will help you compare plans, understand costs, and make confident decisions that protect your team and your bottom line.
For Further Reading
- Health Insurance for Small Business: The Only Guide You’ll Ever Need
- Health Insurance for Small Business Owners – A 2025 comprehensive guide to getting health insurance for small business owners
- 3 Things All Business Owners Should Know About Small Business Healthcare
- The Best New Healthcare for Small Business: Healthshare Plans for Small Groups
- Alternatives to Employer Health Insurance
- 6 Best Small Business Health Insurance or Healthshare Plans in Ohio
- Best Small Business Health Insurance in Texas
- The Best Health Insurance for Small Business in Georgia [2025 Guide]
Frequently Asked Questions (F.A.Q.)
Q: How much does health insurance cost for small businesses?
A: Costs vary by location, employee count, and plan type. Group plans typically range from $300-800 per employee monthly, while healthshare options cost 30-50% less.
Q: What are the business tax benefits of providing health insurance?
A: Small businesses can generally deduct 100% of health insurance premiums paid for employees as a business expense, reducing taxable income.
Q: Do small businesses have to offer health insurance?
A: Only businesses with 50+ full-time employees must offer health insurance under the ACA. Smaller businesses can choose whether to provide coverage, though tax benefits make it attractive. According to the Kaiser Family Foundation, about 60% of small firms with 3-9 workers offer health benefits to their employees.
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Wiley is President of HSA for America. He believes that consumers should have choice and price transparency, so they can make the best healthcare decisions for their needs. Read more about Wiley on his Bio page.
