Small Business

Are Small Businesses Required to Provide Coverage to Their Employees?

Updated on November 30, 2019


Under current law, small businesses with less than the equivalent of fifty full-time workers are not required to offer health insurance – but many do anyway.

Small business health insurance is a great choice for any employer that wants to hire and retain the best workers, but small businesses offering coverage tend to fall into three categories:

  • Growing, successful businesses moving up in the world
  • Businesses with highly skilled workers, and
  • Business that are tax savvy

Let’s look at each in more detail:

First, there are the growing, successful small businesses that have worked hard and proven themselves. If that’s you – congratulations! You may be ready to reward yourself and your employees with small business health coverage.

Second, there are small businesses with skilled workers, even if it’s just a business with one or two employees.

If that’s you, you know that when competing with larger companies for skilled workers, offering health coverage may be a necessity.

Third, there are small businesses who are financially savvy and who understand the potential savings and tax benefits of offering a group health insurance plan.

For example, did you know that small business group coverage may be less expensive than buying coverage on your own? And that you can typically deduct your small business premiums from your taxable income?

To learn more about your small business health insurance options today, visit

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