Small Business

How to Pick the Best Small Business Health Plan for Your Company

Updated on December 09, 2019

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Updated November 22, 2019

Choosing a small business health insurance plan can seem like a big project to undertake. Just like shopping for any kind of insurance, it’s a smart choice to shop around and do your research before committing to enrolling in a plan.

eHealth has plenty of tools that will make searching for your group policy a simple matter. Take advantage of our free instant quotes, our streamlined application process, and our tool for shopping for low cost small business health insurance by state. Keep reading on to learn more tips on searching for the best small business health insurance plan.

Selecting the best small business health insurance plan for your unique small business

Some of your first considerations might include:

  • Employee average salaries and business revenues: You probably want to offer your employees the best coverage that you can, but you also need to encourage participation with affordable premiums. If you qualify for small business tax credits, this will help you cover the cost of splitting premiums with employees. Finding the right balance between cost of premiums and benefits offered in a plan is key. On eHealth, we make costs and plan specifics clear, so you don’t have to read between the lines when it comes to insurance plans.
  • Employee ages and general health: You might satisfy younger and healthier employees with a small business insurance plan that just covers the basics but has lower premiums. Older and less-healthy employee populations may prefer a group health insurance that picks up a larger share of medical bills, but costs more in monthly premiums. You could survey your employees to learn what they expect out of a small business health plan, and you can even choose to offer more than just one plan type.
  • Local network medical providers: If you operate your business in an urban area with lots of nearby providers, more restrictive network plans may still provide plenty of convenient choices.  If you located your company in a rural area, your employees might have to travel to get the services they need, and that can cut into productivity and morale. You should consider how well your small business health plan gives employees access to good, local care.

There is more than one type of small business health insurance plan

You should also take a few moments to learn how different kinds of group health insurance plans work. Consider some pros and cons of the most popular choices for a small business health plan:

  • Health Maintenance Organizations (HMOs) typically do the best job of controlling premiums and expenses. The members of this kind of small business health plan have to get covered services from the list of network providers almost every time. In exchange for more restrictions, this type of small business health insurance plan could cost less.
  • A more-flexible Preferred Provider Organization (PPO) plan may please your employees because this kind of small business health insurance plan will cover out-of-network provider visits. At the same time, those out-of-network visits will cost more, and PPOs typically have higher premiums than HMOs do.
  • A high-deductible plan could help control premiums. At the same time, employees have to pay this higher deductible before they get coverage. These plans work with health savings accounts that encourage people to save with tax advantages. If your typical employee doesn’t need tax deductions and may not be able to afford to make contributions, this kind of small business health plan might not help.

Whichever plan you choose, make sure to look at plan and network details. Having in-network hospitals, clinics, and health-care providers nearby could be the difference between your employees taking advantage of being a part of the group health insurance plan or not.

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.

How to compare choices for a health insurance plan

Choosing the best small business health insurance plan for your company might present a challenge. At the same time, you can make this task a lot easier by using eHealth to shop for your group health insurance plan.

To look for group health insurance, you only have to type in your ZIP code and select the number of employees that you hope to provide a small business health plan for. Comparing quotes, and checking out several different plans available in your area is a great way to see what’s out there, and get an idea of which small business health insurance plan might work best for you. With eHealth, you’ll be able to check out the costs and coverage details of plans from several different companies all at once.

Once you’re enrolled in a group health insurance plan, you can also search for additional benefits, like dental and vision plans.

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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