How to Offer Group Health Insurance as a Small Business

Posted on: August 22, 2019 by Javier iSure

For small business owners, dealing with health insurance for the entire staff, no matter how small it is, can be confusing and frustrating. Small business owners have to decide if they should offer group health insurance or stay away from it altogether. So, which direction should they go?

An important factor that small business owners have to think about is whether their employees can get adequate health insurance somewhere else. And since the Affordable Care Act and group health insurance marketplaces offer consumers a myriad of options, most of the time the answer is to opt for group health insurance plans.

Here’s what to consider when thinking about group health insurance for a small business and how to supply it to employees.

Take a Headcount

Costs can make things difficult for small business owners when it comes to offering group health insurance. Companies who hover around a dozen employees or a little less think it may behoove them to cut out group health insurance altogether, saving them money in the short-term.

Businesses with fewer than 25 employees on full-time work that meet certain requirements can get tax credits if they buy group health insurance on the Small Business Health Options Program (SHOP) marketplace. But there are many different options when searching for the right kind of coverage, like third-party suppliers such as iSure, which can help brokers direct their clients to find the right group health insurance options for their businesses.

While SHOP marketplaces offer coverage, they can limit employers to only picking one carrier and one plan category whereas with iSure, for example, there’s more opportunity to personalize coverage.

A Growing Business

Small business owners should not only consider the current size of their business but also the growth potential they’re planning for. A small business may have eight people working right now, but this number could balloon to 50 or 100 within a short amount of time. This puts the business in a completely different group health insurance coverage category.

Only employers who work with 50 or fewer full-time employees can buy group health insurance through the SHOP marketplaces. After that, businesses have to go third-party.

Attracting Skilled Workers

A small business will only go as far as its employees can take it. If a small business is competing against larger companies when it comes to attracting and retaining talent, owners should consider providing group health insurance.

Group health insurance has always been part of the entire compensation package offered by businesses, and while this may change in the coming years, most skilled workers still expect to receive group health insurance coverage.

While there are still options for employers to choose self-insurance coverage, working with third-party providers, like iSure, will help to provide the right level of comprehensive insurance needed for a staff of any size.

About iSure Insurance Brokers

After serving leaders in the Greater Miami market for more than three decades, iSure Insurance Brokers has become the provider of choice for discerning commercial clients and individuals alike. Because no two insurance programs are or should be alike, you can be sure that iSure will craft a comprehensive approach to protection that is as unique as you are. We welcome the opportunity to protect what you have worked so hard to build. Please contact us at (305) 223-2533 to learn more about what we can offer you.

Posted in: Blog Employee Benefits Group Health