Group Health For Small Business

If you have between 2 and 50 employees, then you're a small business. But just because you have fewer employees the huge companies, it doesn't mean that you can't provide them with health benefits.

Group health insurance is affordable for you too, not just the big businesses.

What Are My Options?

The most affordable group health plans that you'll find are managed care plans — and they include Preferred Provider Organizations (PPOs) and Health Maintenance Organizations (HMOs).

Managed care works like this: The first step is that it creates a "network" of doctors, hospitals, clinics, and other healthcare providers. Then the managed care organization refers its members to the network. And because the network gets more referrals, they agree to provide their medical services for a discount — so you'll get low premiums, deductibles, and co-payments.

What's The Difference Between PPOs and HMOs?

The main difference is that a PPO offers more flexibility and an HMO offers more affordability.

The PPO has a managed care network, but members aren't restricted to finding care just within the network. Say an employee has a doctor that they have been going to for years and doesn't want to change. Even if their doctor isn't in the network, they will still have coverage with a PPO group plan.

On the other hand, an HMO plan won't cover that employee if their doctor is out of the network. You have to always stay inside the network with an HMO, but HMOs are the most affordable group plan — with the lowest premiums and co-payments. And usually HMOs don't have a deductible that you have to pay.

Health Savings Accounts

Health Savings Accounts (HSAs) are another option for your small business that can be affordable for your budget.

Your employees will first need to have a high deductible health plan, which is a plan with a deductible of $1,050 or higher. Then they are eligible for their HSA.

HSAs aren’t insurance plans, though. They're bank accounts where your employees can save money for healthcare costs. And money can be put in the accounts right from their paycheck, before taxes.

Another benefit of an HSA is that money rolls over from year to year, and it earns interest. If your employees don't use their savings, the account will build in value. 

Cafeteria Plans

Another affordable option is a cafeteria plan, where your employees choose which benefits they need from a "menu" of choices.

I Can Cover My Small Business Affordably

Now you know some good options to give your company health coverage that you can afford — because group health insurance isn't just for a big business budget anymore.

But finding the most affordable health coverage is easiest with the help of professional agents. Our licensed agents can help you sort out your small business' health needs with our free quote service.