Small Business Health Insurance Your Team Will Value
We compare small business health insurance, from fully funded group plans to level-funded plans and ICHRA allowances, so you can offer benefits that fit your team and your budget.
- W-2 Employees Can Qualify
- From 2
- Fee for Our Help
- $0
Group Health Insurance Options for Small Businesses
Look past the premium. Who carries the risk, how much there is to manage and how claims are handled all change the true cost of a plan.
How a Level-Funded Health Plan Works
A level-funded plan is a hybrid of fully funded and self-funded coverage. Three terms explain how it works and why your risk stays capped.
- Self-Funded Insurance
- The employer owns the risk and pays claims from a pool of money it sets aside. Some of that money may come from employee payroll deductions.
- Stop-Loss Insurance
- Coverage that sits on top of a plan and pays only for losses above a set threshold, called an attachment point. A specific attachment point applies to each person's claims and an aggregate one to the whole group's.
- Level-Funded Plan
- Your monthly payment funds expected claims, stop-loss coverage and administration. Claims reports show where the money goes, so you can work to bring costs down.
Fully Funded vs Level-Funded vs ICHRA
| What to Compare | Fully Funded Group Plan | Level-Funded Plan | ICHRA |
|---|---|---|---|
| Who It Fits | Employers that want a traditional plan and a fixed premium | Employers with the risk tolerance and cash flow to take on some claims risk for possible savings | Employers that want a set budget, or have staff in different locations or job classes |
| Who Carries the Risk | The insurance company | You, up to the stop-loss limits | Each employee's own insurance company |
| Administration | The carrier handles claims and plan administration | Similar to a fully funded plan | Plan documents and yearly IRS filings |
| Cost Predictability | Premium set for the plan year | Level monthly payments for the plan year | You set the allowance, so your spending is capped |
Do Small Businesses Have to Offer Health Insurance?
Federal law requires coverage only from applicable large employers: businesses with 50 or more full-time or full-time-equivalent employees. Below that, offering health insurance is your choice.
An applicable large employer must offer full-time employees and their dependents coverage that is affordable and meets minimum standards, or risk an IRS penalty when a full-time employee gets a premium tax credit. It also files Forms 1094-C and 1095-C with the IRS each year and gives every full-time employee a Form 1095-C. Read the IRS employer shared responsibility provisions (opens in a new tab).
Own more than one business?
Companies under common ownership or in a controlled group count their employees together. Two companies with 25 and 30 full-time employees add up to 55, so both may fall under the rule.
How We Set Up Your Small Business Health Plan
Learn Your Goals
Headcount, budget and what matters most to you: hiring, keeping good people or controlling cost.
Compare Your Options
Rates from multiple insurance companies and the trade-offs of each plan type.
Set Up the Plan
We complete the application with you and check that the group meets every requirement.
Enroll Your Team
We walk employees through their choices and stay on call for renewals, new hires and questions.
What It Takes to Start a Group Plan
Insurance companies set participation and contribution requirements for small groups. First-year groups that sign up during Open Enrollment get exceptions.
- Your Number of Employees and Where They Live
- What You Want to Contribute Each Month
- Any Coverage You Offer Today
Thank You, We Have Your Request
Want a set time instead? Pick one on our calendar.
What Business Owners Say
I've had a fantastic experience using Beyond Health Consulting as our health insurance guide, both for individual plans through the marketplace and also for getting our small business employer plans. Colleen really knows her stuff and she's generous with her knowledge… She's also just saved us so much money over the last 18 months from guiding us to good health insurance plans.
Before Beyond Health: panic, dread, uncertainty about what was happening with my new business insurance needs. After Beyond Health: calm, cool, collected, in control and informed… I would have made a bunch of sub-optimal decisions without this team's help.
Small Business Health Insurance FAQ
How Much Does Small Business Health Insurance Cost?
It depends on your employees' ages and locations, the plan design and how much you contribute toward premiums.
Do Level-Funded Plans Give Money Back?
They can. If your group's claims come in below the amount set aside for them, you may receive a refund of part of the unused funds. Steps that lower claims costs improve the odds.
Can I Get Group Health Insurance If I'm Self-Employed With No Employees?
Not on your own. A business owner alone isn't a group. Until you hire, an individual plan is the way to go, and your income may qualify you for a tax credit. See self-employed health insurance options.
Can We Contribute to Employee HSAs Through Payroll?
Yes, through a Section 125 plan. It needs written plan documents and nondiscrimination testing every year, and we help you put both in place. Compare HSA vs FSA accounts.
Find the Right Plan for Your Team
We meet by phone or video, at a time that suits you.
Beyond Health employs licensed insurance producers authorized to sell life and health insurance in Utah, Idaho, Wyoming, Colorado, Montana and South Carolina. Our activities comply with state licensing requirements and partner carrier guidelines. Product availability and enrollment options may vary by state. Plan details, prices and deadlines on this page come from government and insurer sources and can change. Your agent confirms them before you enroll.