How Much is Health Insurance for a Small Business Owner?

Small Business

How Much is Health Insurance for a Small Business Owner?

Published on June 10, 2019

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As a small business owner, you may be wondering how much health insurance is for yourself and your employees. Beyond the cost of group plans in general, what are the average costs of small business health insurance from the perspective of the employer? And how can small business owners get affordable health insurance plans?
Continue reading for answers to these questions as well as an overview of how much health insurance is for small business owners.

How much is health insurance for a small business owner?

Determining how much it costs for a small business owner to purchase health insurance for himself or herself, as well as the company’s employees, depends on several key factors, including the workforce’s size, age, and location. The level of cost-sharing and employer contributions to monthly employee premiums also helps determine how much health insurance will cost for small business owners.
According to an eHealth report, small businesses with fewer than 30 employees paid an average of $409 per person for premiums in 2018. Small business owners also spent an average of $3,140 per person for deductibles in 2018.

What else should a small business owner know about how much health insurance is?

While the cost of health insurance itself forms a major part of health care expenses for the employer, there are also related considerations which a small business owner should keep in mind.

  • Depending on the situation, small business owners may need to spend time administering their group health plan or pay an outsourced third party to manage the administration of health benefits for their employees.
  • Certain factors may offset the total dollar cost of health insurance coverage for a small business owner. One consideration is employer contributions, or the percentage of employee premiums that are split between the company and its workers.
  • Potential tax breaks, including the small business health care tax credit for qualified companies and how small business owners can deduct employee premium costs from their federal business taxes, may also offset the cost of group health insurance for the employer.

Although all health plans are different, remembering these important administrative, financial, and tax factors can be helpful for a small business owner when evaluating their costs and options for group health insurance.

Can small business health insurance have lower costs than individual health insurance?

Small business health insurance plans generally have lower average per person costs compared to individual health plan coverage.

  • The eHealth report found that, in 2018, the average monthly premium through a group plan was 7 percent lower than an individual health insurance plan’s average premium ($409 vs. $440).
  • The eHealth study also found that, in 2018, the average deductible per person for small business plans was 31 percent ($1,438) lower than the average deductible for individual health insurance coverage ($3,140 vs. $4,578).


Source: eHealth 2018 Small Business Health Insurance Report
This is good news if you are a small business owner who wants to provide health insurance for yourself and your family, as well as your employees. Depending on your budget and medical preferences, a group health plan may be a more affordable option for offering health coverage through your business.

How to get group health insurance for small business owners

You can get free small business health insurance quotes from eHealth. By quickly entering in your company’s zip code and number of employees, you can instantly compare group plans from a wide selection of top health providers available in your area.
As a small business owner, you can also speak with one of our licensed agents, who can help you navigate the health insurance shopping, application, and implementation process from start to finish. The difference you get with using eHealth is that we continue to support you, even after you have bought your plan. We’ll serve as the communication point between you and the insurance provider.
Visit eHealth.com and find the right small business health insurance for your company 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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