Small Business

How to Renew Small Business Health Insurance

Published on January 29, 2020


As a small business owner with group health insurance coverage, you may be wondering how to renew your current group policy for yourself and your employees. The good news is that the group health plan renewal process could be much simpler than you may think.

To renew small business health insurance coverage, a company typically needs to receive new plan information from their insurance company, choose plan options for their workforce, and then allow employees to enroll.

Continue reading to learn more about the group health plan renewal process for business owners.

Why renew small business health insurance coverage?

Employers renew small business health insurance in order to continue providing coverage for their employees, and to make any needed adjustments to their group health plan from the previous year.

Primary reasons to renew small business health insurance include:

Usually, the group health plan renewal process tends to be focused on maintaining coverage, since group health insurance plans may be more affordable than individual health plans.

In addition to usually being more affordable overall, both employers and employees can benefit from tax advantages from a group plan, such as tax deductions, potential tax credits, and reduced taxable income.

Overall, deciding to renew small business health insurance coverage serves as an important part of the employee benefits renewal process for employers.

How does the group health plan renewal process work?

While you can enroll in a small business health plan at any time of year, most small business employers will typically renew their group health plan toward the end of the year during their state’s Open Enrollment period, or during the Special Enrollment Period for small businesses.

After a company has first enrolled in a group plan, the renewal process will occur once during each following year. Since the plan may or may not be set to renew automatically, employees should review any new plan changes before they become implemented, and you should encourage them to reassess their needs and make sure they’re enrolled in the plan that works best for them.

The health insurance company will provide information to the employer about any pricing and payment changes for the new plan year, which are based on factors including inflation, new industry regulations, network and prescription changes, and risk reassessments.

Here is an overview of the main phases of the group health plan renewal process for employers and employees, after they receive plan information from the insurance company.

  • Health plan selection – To renew small business health insurance coverage, the employer chooses health plan options for their employees. The small business employer’s cost-sharing contributions for employee premiums are also usually determined during in this phase.
  • Employee enrollment – Next, employees choose plans made available through their employer. Current employees can make changes to their previous coverage due to major life changes or qualifying life events, while new employees can decide whether to enroll in the group plan.
  • Renewal completion – After employees finish choosing their health plans, the renewed group health insurance coverage begins on the date specified by the health insurance company.

Ultimately, the group health plan renewal process allows businesses to strategically decide what kind of health coverage will most effectively serve their employees throughout the following year.

How to renew small business health insurance through eHealth

When you renew your company’s group coverage with eHealth, you benefit from a simple, easy, and streamlined renewal process. Advantages of using eHealth include receiving access to:

  • Group health plan quotes from top companies in your area, provided with no obligation
  • Comparison tools allowing you to quickly evaluate group plan rates and benefits
  • Licensed insurance agents providing personalized help and dedicated customer service

Employers can also consult eHealth’s Small Business Preparation Checklist when they decide to renew their group plan or choose a new plan. The checklist provides a detailed and comprehensive overview of how to get group coverage, and may be a useful resource to consult during the renewal process for your company.

To learn more about health insurance coverage options for yourself and your employees, visit or speak with one of our helpful licensed insurance agents 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.

Join Our Newsletter

Get healthcare news, wellness tips, and coverage resources