Group Health Insurance for Small Law Firms

Small Business

Group Health Insurance for Small Law Firms

Published on May 01, 2018

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Updated August 28, 2019
Are you in need of a group health insurance plan for your small law office? Even very small law firms can qualify for group health insurance, and may be able to save money through lower premiums or potential small business tax credits.
If you’re on the fence about whether or not you can afford health benefits for the employees of your small law firm, read on to see how health benefits aren’t as hard to get as you may have thought.

Should you provide health insurance to the employees of your small law firm?

Before discussing the costs and benefits of health insurance for your small law firm, you should have an understanding of what these kinds of benefits can do for a small law office.
To learn more about how employees actually value health benefits more than a pay raise, read eHealth’s article on why small business owners should provide health insurance to their employees.
Some small business owners have missed out on the benefits of group health insurance, because they don’t think their group is large enough. Even if you are a very small law firm, with only a few employees, you still might be able to get group health insurance for your small law office. Most health insurance companies require a small business to have an owner, and at least one full-time equivalent employee. So don’t count yourself out of qualifying for group health insurance—even if your small law firm only has a few employees.

How group health insurance for your small law office can help you save money

There are plenty of ways that group health insurance for your small law office could help everyone save on health insurance costs. Some of these include:

  • Splitting premium coverage between owners of the small law office, if there is more than one
  • In general, premiums per individual tend to be cheaper with group health insurance plans
  • If your small law firm employs less than 25 people, you have the chance to qualify for a small business tax credit

If you’re part of a small law firm that is equally owned by yourself and other practicing lawyers, the financial benefits of getting a group health insurance policy could be enormous. Because there are several “owners” of the firm, you may potentially be splitting the rest of the employees’ premiums with your co-owners, which means the cost of employees’ premiums doesn’t fall on one single person.
Even if you are the only “owner” of your small law firm, it’s very likely you and your employees will be saving on premiums per individual. According to an eHealth study on costs, trends, and insights in 2018, small business health insurance premiums are significantly more affordable than premiums for individual health insurance. In 2018, the average group health insurance premium per person was 7 percent lower than the average premium for an individual health insurance plan ($409 compared to $440).

Source: eHealth 2018 Small Business Health Insurance Report
If you meet certain qualifications, you may also be able to get a small business health insurance tax credit, which can help very small businesses, like your small law firm, be able to offer group health insurance.

Health insurance for law offices: which plan is best?

It’s up to you what benefits should be offered to the employees of your small law firm.You’ll have to take into account factors such as which health insurance companies and plans are available in your area, and what your budget allows for.
According to eHealth’s 2018 insights, the most popular plan type chosen by small businesses was the Point of Service (POS) plan. This plan type looks a lot like Preferred Provider Organization (PPO) plans, but also has similarities to Health Maintenance Organizations (HMOs), which are often more limited, but affordable.

Source: eHealth 2018 Small Business Health Insurance Report
The best health benefits for your small law firm will depend on the employees you’re covering in your small law firm group health insurance plan. Make sure to consider their needs when choosing a group health insurance plan for your small law office.
Also keep in mind that each plan has its own terms and limitations, so be sure to check the official plan documents to understand how that specific plan works.  This article is only for general education.

Additional health benefits for a small law firm

So you’ve decided that group health insurance is a must for your small law office, but what else is there for you to offer? If you want to add extras to your small law firm employees’ health benefits, some popular choices include:

These add-ons are great ways to go above and beyond with your small law office health benefits. For some, the difference between a job without benefits like dental and vision, and one with them, could be significant. In order to keep your workforce happy, and hire more excellent employees, consider adding benefits like vision and dental plans to your small law office health insurance coverage.

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