Idaho Small Business Health Insurance – 2025 Guide

Idaho Small Business Health Insurance

HSA for America offers this detailed health insurance guide aimed at aiding small businesses in Idaho, particularly those with 30 employees or fewer, in devising the most cost-effective health benefits strategies to remain competitive and attract top talent.

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Idaho Small Business Health Insurance Options

Idaho small businesses can choose from several options for providing health coverage:

  • Traditional Group Insurance: Common and straightforward but can be costly, averaging $19,788 per family coverage per year.
  • Alternative Options:

Cost and Employee Contributions

Employees generally contribute over $6,315 towards their health insurance, slightly above the national average.

Cost and Employee Contributions

Geographic and Demographic Considerations

It’s vital for businesses, especially those spread across urban and rural areas like Boise and Riggins, to consider the geographic distribution of their workforce when selecting health plans.

Idaho Small Business Health Insurance Regulatory Aspects

  • Under the Affordable Care Act, companies with fewer than 50 employees are not mandated to provide health insurance, avoiding penalties.
  • Plans must cover the ACA’s 10 essential health benefits, including emergency services, hospitalization, and more.

The HRA Option

Employers can use Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) to provide flexible, tax-advantaged health benefits without minimum contribution requirements.

The Idaho Small Business Health Insurance HRA Option

Advantages of Health Sharing Plans

These plans are increasingly popular as they can save significantly on premiums and offer more choice in healthcare providers compared to traditional insurance.

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Idaho Small Business Health Insurance Administrative Considerations

Managing health benefits involves significant administrative responsibilities, but alternative strategies like HRAs can reduce these burdens by shifting the choice and management of health plans to employees.

Tax Implications

  • Employer contributions to health coverage and HRAs are tax-deductible.
  • Health sharing plan costs are taxable to the employee but deductible for the employer.
Idaho Small Business Health Insurance Tax Implications

Combining Idaho Small Business Health Insurance Strategies

Employers might find combining various health plans such as HSAs, HRAs, and health sharing plans beneficial, offering flexibility and potentially lower costs.

Idaho Small Business Health Insurance: FAQs

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What is the Difference Between Health Insurance and Healthsharing for Small Businesses?

A health sharing plan involves participants contributing money into a pool to cover medical expenses.

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In Idaho, can employer contributions to HSAs be claimed as a deduction from the state’s income tax?

Yes. In Idaho, employer contributions to employee HSAs can be deducted from the state’s income tax.

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Is it a good idea for Idaho small business owners to offer a Direct Primary Care plan (DPC), along with other options?

Small businesses can benefit from a cost-effective solution by combining DPC and low-cost options such as health sharing plans.

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Is it possible for a business to claim the Small Business Health Care Tax Credit even if there are no taxes due in Idaho?

You can carry the Small Business Health Care Tax Credit backwards to offset your income tax liabilities from previous years or forward for up 20 years.

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What is the Health Reimbursement Agreement (HRA)?

HRAs, or Health Reimbursement Accounts (HRAs), are funded by employers and reimburse employees who have qualified medical expenses which their insurance does not cover. Employers contribute to the account based on what expenses they determine are eligible.

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What is the best combination of cost-sharing and health insurance for my Idaho small business?

 A Personal Benefits Manager can be contacted to help you get it done. They can provide a complimentary analysis and recommendations based on the specifics of your needs, including budget, employee count, and pre-existing conditions. The experts can design a plan to maximize the value of your employees, while controlling costs. This will help you stay competitive. 

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Can you tell me about the waiting period for health plans that cover pre-existing conditions?

Health Savings Accounts (HSAs) can help Idaho employers manage their medical expenses.

HSAs enable individuals to pre-pay for medical costs in the future. Employers and employees both can contribute. This provides tax advantages as well as potential savings in healthcare expenses.

Employers in Idaho can contribute to HSAs for their employees.

Employers can contribute to HSAs of their employees, but only up to the annual limit set by Congress.

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How do I apply for the Small Business Health Care Tax Credit

Businesses that earn a profit can claim the credit by filing IRS Forms Form 8941. However, small tax-exempt companies must file a form 990T.

HSA for America cannot provide you with tax advice. Employers can consult their own tax advisors to get full details of the credit.

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In Idaho, are maternity benefits included in health sharing plans?

Idaho health plans that offer health insurance and healthsharing often include maternity coverage, which includes prenatal care, labour, and postnatal health care. Cost-sharing for children born out of wedlock may be restricted in some healthsharing plans.

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HRAs work with individual and health sharing plans as well as other health coverage plans.

Yes. HRAs and other coverage options can be combined. HRAs have been used by small business owners to pay for employee policies and cancel their group insurance. HRA money is not able to be reimbursed directly by employees for costs associated with health sharing plans.

Only employers with fewer than fifty employees are eligible for the Qualified Small Employee Health Reimbursement Arrangement. If you employ more than fifty employees or if your business grows, you may be eligible for other HRAs.

You’ll also be required by the ACA to offer a health plan that is qualified for your workers, otherwise you will have to pay a fine. Speak to your Personal Benefits manager if you plan on hiring your 50th employee or the equivalent soon. This could have an impact on your plans.

 
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