Small Business Health Insurance in Florida (Everything You Need to Know)
Updated on November 01, 2019
With an unstable individual health insurance market and rising prices, small business health insurance in Florida has even larger implications than before. By providing access to group coverage, small business owners may benefit from lower prices and potential tax benefits; keep reading to see how.
According to Real Time Health Quotes, 4 million people in Florida are without health insurance (over 20% of the population).
According to the same study, 94 percent of large businesses supply health insurance to their employees, whereas small business health insurance in Florida is only offered by 38 percent of small businesses.
Does offering small business health insurance in Florida set you apart from other employers?
The answer is, yes! Many employees value benefits such as health insurance even more than a pay raise. This may be due to the benefits employees get by having employer-sponsored group health insurance:
- Cost sharing—As an employee covered under small group health insurance in Florida, premium costs are usually shared with the small business employer.
- Tax benefits—Since an employee’s share of the health insurance is usually taken out of his or her paycheck, that means it comes from pre-tax dollars. If your employees have to buy individual health insurance plans on their own, they will have to pay with post-tax money.
- Lower prices—Due to being a larger pool than just an individual or family, premiums on small group plans are often cheaper per individual. According to the Small Business Administration, the idea of risk pooling is fundamental to the idea of health insurance, and it’s based on the idea that the more people that are covered, the more stable the average costs become. And because the cost for the insurance company is more stable, that means they can charge less per person.
When it comes to group coverage, there are plenty of ways that both employees and employers benefit.
How does small business health insurance in Florida benefit employers?
Offering group coverage in Florida as a small business owner can have significant benefits. Some of these include:
- Retaining and hiring key employees—You can read up more on the topic of how to retain key employees for your small business, but the basics are that talented workers are going to go for the best positions—and the best positions often include benefits like group health insurance. According to the Small Business Administration, economists believe that employees generally perceive having health benefits as more of a cost-saver than having a higher salary (even if a higher salary equals more money at the end of the day). So in other words, small group health insurance is proven to make employees happy, and it may mean you don’t have to stretch your budget with bonuses or pay raises.
- Tax benefits—If you employ 25 or less people, their average wage is less than $52,000, and you contribute at least 50% to their premiums, you may qualify for the small business premium tax credit. This tax credit is meant to help you afford the cost of small business health insurance in Florida. Learn more about the health tax credit for small businesses.
- Fostering a positive environment in your Florida small business—This goes hand-in-hand with retaining employees, but it’s important enough to mention on its own. As a small business owner, you’re probably proud of the business you’ve grown, and you want your employees to like you and like working at your small business. Providing small business health insurance as a Florida employer can show that you value your employees, especially since businesses with less than 50 employees aren’t mandated to offer health insurance.
- Healthy employees—By offering small business health insurance in Florida, you’re giving your employees access to preventative care and discounts on prescriptions and doctors’ visits. With all the medical care your employees can take advantage of, you may find that you have healthier employees at work, and less people taking sick days.
Small business health insurance in Florida for very small groups
There are small businesses, and then there are very small businesses. Sometimes it may be harder for businesses with only a few people to supply coverage to employees, due to factors such as having small revenues than larger businesses.
According to the Transamerica Center for Health Studies (TCHS), the top reason that employers had for not offering health insurance was that they were too small. In fact, this was the biggest concern for over half (55 percent) of respondents to the survey.
Luckily for businesses out there with only a few employees, eHealth still has great coverage options that make it easier for you to offer health insurance to your employees. In fact, 2018 data from our customers suggested that even smaller companies buy small group health insurance from our site.
This increase is likely explained, in part, by the unaffordable prices of individual plans. On average, group health insurance plans are cheaper per individual, meaning that your employees will have access to coverage that they can actually afford.
Learn more about small business health insurance in Florida
If you want to learn about the different popular group health insurance plans available, you can read up on what other plans small businesses owners are choosing here.
Small business health insurance in Florida can be easy to get when you use eHealth to search different plans. Visit our Florida small business health insurance page and get quotes on plans instantly.
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.