3 Things Every Small Business Owner Should Know About Obamacare

Small Business

3 Things Every Small Business Owner Should Know About Obamacare

Updated on November 29, 2019


Updated August 8, 2019

If you’re a small business owner contemplating health insurance options for 2019, there are a few things you should know:

1. Small business health coverage is cheaper than Obamacare

First, when you offer a group health insurance plan for yourself and your employees, analysis from eHealth shows that coverage on a per-person basis averages about $30 cheaper per month than enrolling in an individual Obamacare plan – that’s nearly $120 per month for a family of four!

Source: eHealth 2018 Small Business Health Insurance Report

According to an eHealth survey of small business owners, many respondents said that they offer employer-sponsored health coverage because they consider it a moral obligation (43 percent) or because it helps them hire and retain the best workers (66 percent) – but it also provides you and your employees with a more affordable road to coverage.

Source: eHealth 2018 Small Business Health Insurance Report

2. The December 15 deadline is a big deal for you and your employees

If you still haven’t decided to offer a group health insurance plan, you need to make up your mind soon. Without a group health insurance plan, you and your employees will need to enroll in Obamacare coverage by December 15, 2019 if you want coverage for 2020.

3. The future of Obamacare is uncertain – but group coverage may be less likely to change

Although we do not know what health care laws will be reformed or changed in the future, group health insurance has historically shown that it is not subject to price changes as drastic as those for individual health insurance.

According to a 2018 eHealth report, the average per-person premium for small business coverage increased only 5 percent between 2015 and 2018, while individual premiums for those who buy their own coverage increased 54 percent in the same period (from $286 in 2015 to $440 in 2018).

If you want to provide yourself, your family, and your employees with stable coverage for the future, an employer-sponsored group health insurance plan may be the way to go. Employer-based plans seem less likely to be as seriously impacted by changes to the individual health insurance market. Work with a licensed agent like eHealth to find the right group health plan for your needs and budget today.

This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.

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