Best Health Insurance for Small Business Owners

Health insurance is a popular benefit for businesses of any size. It allows employees to have access to health insurance policies at an affordable rate. This often leads to happier and healthier workers. Small businesses can obtain specialized health insurance group rates for their benefits packages. After comparing the different options and plans, selecting the best health insurance for small business owners is easy.

Health insurance as an employee benefit ensures that workers have affordable access to insurance options. These are usually group policies that allow multiple people from the company to enroll with different rates and coverage levels.

Small businesses may struggle to find health insurance providers that offer affordable rates on these group plans. The ideal health insurance for small business owners will provide:

• Competitive rates
• A strong network of medical professionals
• Different coverage options

Certain health insurance coverage plans for businesses will also include dental or vision coverage as an additional option for comprehensive insurance.?

After learning about the pros and cons of the most popular plans, selecting the right health insurance for small business owners is simple.

The Importance of a Comprehensive Health Insurance Plan for Small Businesses

?Small businesses don’t have to offer health insurance plans if they have fewer than 50 employees per federal law. Some states, however, require health insurance offerings for employees no matter the business’s size.

There are many advantages to including insurance as part of a benefits plan, so small businesses should consider including it.?

Employees often greatly appreciate having health insurance coverage, which is a crucial reason small businesses should shop for available group plans. People want to feel appreciated by their workplace and offering health insurance shows that you care about the employees.?

Retaining top talent in the industry and recruiting new employees becomes easier when a small business offers desirable benefits. As Diana YK Chan, the founder and CEO of My Marketability, states, “I believe it's now a candidate's market. Candidates are seeking careers that align with their values. Employers need to step up with managing the candidate experience to attract talent and the employee experience to retain talent.” To attract high-quality professionals to your positions, offer competitive employee benefits to stand out.?

Other fundamental advantages of having health insurance as part of your benefits package include:

• Improved employee morale
• Higher employee satisfaction
• Reduced absenteeism

Additionally, affordable health insurance options are available to small businesses that have as few as two employees. No matter your business’s size, you can find health insurance plans that suit your organization.

Best Health Insurance Options for Small Businesses

When searching for health insurance for small business owners, focus on popular insurance providers. They will provide the most competitive rates.

Insurance is not a one-size-fits-all scenario; consider your employees’ needs and the size of your company to choose the best insurance company.

Here are the most popular small business insurance providers to consider:

• UnitedHealthcare
• Blue Cross Blue Shield
• Kaiser Permanente
• Aetna
• Humana

UnitedHealthcare

UnitedHealthcare is the biggest health insurance provider in the country. They offer group coverage plans in all U.S. states and have a sizable network of providers for employees to consider.?

Telehealth has become increasingly popular since the start of the COVID-19 pandemic, and UnitedHealthcare offers popular online healthcare and consultations (called Virtual Visits) to all group plan members. UnitedHealthcare invests in technology to enhance its offerings and meet the needs of consumers.?

Another huge benefit of choosing UnitedHealthcare is their mental health coverage. They have more support options and 24/7 accessible care for group plan members. Sho Dewan, talent development trainer and career coach, explains that therapy and mental health support is not always easy to find, and it takes time before it is beneficial. Employees will feel valued by employers that include mental health coverage as part of their health insurance offerings.

Blue Cross Blue Shield

Blue Cross Blue Shield is one of the best coverage plans overall for small businesses because they have many plan options available for groups. They operate through local and independent insurance companies that are part of their Blue Cross Blue Shield Association.?

A significant benefit of choosing Blue Cross Blue Shield is its partnerships with many hospitals and doctors across the country. Employees will find in-network providers easily using their website.

Anthem is the most prominent for-profit managed healthcare company within the Blue Cross Blue Shield Association. It has a substantial network, but Anthem is only available in select states across the United States. Small businesses can sign up for Anthem separately from the general Blue Cross Blue Shield plan.

Kaiser Permanente

Kaiser Permanente has an excellent reputation for customer service and an easy-to-use website. They also offer great coverage for preventative care. This ensures employees stay healthy longer. This insurance provider is available in eight states (including Washington, D.C.).?

There are six plan options available under Kaiser Permanente (varying by state):

• PPO
• Traditional HMO
• Deductible HMO
• HRS and HSA-qualified
• Deductible HMO with HRA
• Point of Service

Aetna

Aetna is a popular coverage option for small businesses across the U.S. because it has a vast provider network and offers excellent customer service. Their main draw, however, is their funding options available only to small businesses.

This company is the best option for health expense funds, which helps employees save money to use on future medical expenses.?

There are four health expense fund selections for small businesses that only Aetna offers:

• HealthFund HSA
• HealthFund FSA
• HealthFund Health Reimbursement Arrangement
• Retirement Reimbursement Arrangement

Humana

Humana is one of the country's most prominent health insurance companies and has excellent group coverage plans for small businesses.?

They offer many conveniences to make caring for one’s health easier, including:

• Wellness rewards
• Virtual appointments
• Humana Pharmacy services
• Advanced workplace wellness solutions

Humana has stellar customer care and service, and they have associates ready to answer all questions immediately.

Humana has five policy options available:

• Canopy: for minimal health needs
• Simplicity: no deductible for in-network visits
• Efficiency: lowest premium
• HDHP: high deductible but no copays
• Copay: straightforward copays

The Best Choice

There are many options to choose from when small business owners are looking for group health insurance plans. Depending on the needs of your employees (and the size of your business), certain providers might be more appropriate than others.

Talk to health insurance providers to learn more about their offerings in your local area. Take time to compare the policies and coverage selections before making a decision.

Remember that having a good health insurance plan will help you retain and attract talented employees, so it is in the business's best interest to select a good group policy plan.?

Top Takeaways

Best health insurance for small business owners

• Health insurance is essential for employees as part of a benefits package.?
• The ideal health insurance for small business owners is any policy explicitly geared toward small businesses.
• The top options for small businesses include UnitedHealthcare, Blue Cross Blue Shield, Kaiser Permanente, Aetna and Humana.?
• Consider the pros and cons of each plan type and your employees' needs before selecting an insurance provider and policy.

(Reporting by NPD)