The best small business health insurance plans are an affordable benefit that can boost your bottom line
Starting a small business is difficult enough, and choosing the best group health insurance plan isn’t any easier. For most small business owners, the idea of creating an employee health benefit can seem financially out of reach.
But the smart ones know this: Employee health plans are the single most effective way to attract new talent, drive productivity, and increase employee satisfaction.
In this quick guide, I’ll walk you through 4 of the best small business health strategies on the market.
Q: Do I need to provide health insurance for my small business?
If you’re a business owner with 50 or fewer employees, then you aren’t required to provide a group plan. However, group health plans, in their many forms, can create a valuable incentive package for employees.
In addition to higher job satisfaction and productivity, group health insurance has been linked to increased employee retention.
Q: What are my options for small business health insurance?
Here are the options you have when setting up a small business health plan:
- Let employees choose their own coverage
- Traditional small group health insurance
- Group direct primary care (DTC)
- Group healthshare plans
Option One: Let employees get their own coverage |
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|---|---|
| If you have 50 or fewer employees, then you’re not required to provide access to a group plan. This may seem like the most affordable option when it comes to up-front costs, but it lacks the many bottom-line benefits of offering a group plan. | |
PROS |
CONS |
| Saves money | Employees without a group plan are more likely to change jobs frequently |
| Employers don’t have to do anything | Unhealthy employees can lead to expensive drops in productivity |
| It’s harder to attract new talent without a benefit plan | |
Option Two: Group health insurance plan for small business |
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|---|---|
| Group health insurance isn’t as expensive as most people think. In addition, merely offering a health benefit can lead to increased employee satisfaction, which can have a big impact on your bottom line. | |
PROS |
CONS |
| Employee health insurance is a valuable benefit that makes employees happy | Compared to the other options, traditional group health insurance is the most expensive |
| Group plans can have a big impact on your bottom-line | |
Option Three: Direct primary care (DPC) for employees |
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|---|---|
| Direct Primary Care (DPC) is exploding in popularity because of its flexibility and affordability. DPC arrangements allow members to visit a primary care physician as often as they would like, in exchange for a monthly payment that is much less than full insurance. | |
PROS |
CONS |
| DPC arrangements are more affordable than group health insurance | DPC plans don’t usually offer coverage for emergency care or hospital visits |
| DPC is becoming more and more popular as an insurance alternative | |
Option Four: Group healthshare plans |
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|---|---|
| Known as Health Care Cost Sharing, healthshare plans are not technically insurance. Instead, they’re a cost-sharing program where all members split the burden of medical costs. While healthshare plans were originally all faith-based, they are now available to everyone, even individuals with pre-existing conditions. | |
PROS |
CONS |
| Very affordable | Healthshare plans can be less comprehensive than ACA insurance and are generally best for large or unexpected medical expenses |
| A popular alternative to traditional, “one-size-fits-all” group insurance | |
Compare Pricing on the Best Insurance Plans Available
Talk to your Personal Benefits Manager about finding a small business health insurance strategy for you
Want to get a free small business health insurance consultation with a real-life expert? Call your Personal Benefits Manager to schedule an appointment. We’ll give you the tools you’ll need to choose the best option for your employees, and help you get your plan started fast.
Here are some additional articles on small business health insurance programs: Boost Your Company’s Benefits Package with A Small Business HSA: A Step-By-Step Guide | All You Need to Know About Healthshare Programs – Review & Video | Best Health Insurance for Small Business Owners: 5 Plans for Self-Employed Entrepreneurs in 2022
Here are some additional pages related to this article: The Complete Guide to Small Business Healthcare | Everything You Need to Know About Group Health Insurance Plans for Small Business
Mike Montes is a Personal Benefits Manager at HSA for America. His aim is to help you make smart and informed healthcare coverage decisions that will fit your needs and budget. Read more about Mike on his Bio page.