Best Small Business Health Insurance

Are you a small business owner looking to offer health insurance to your employees? Check out our picks for the top five best small business health insurance providers.

Matt has been helping small businesses make decisions since 2017. He has written reviews and articles across many different channels but specializes in the point of sale, payroll, and small business insurance categories and has been quoted in articles for Fox Business, Forbes, and other publications. Prior to joining Merchant Maverick, Matt was a journalist and editor for 14 years for a pair of weekly newspapers. He is a graduate of the University of Oregon and currently resides in Gladstone, Oregon.

• WRITTEN & RESEARCHED BY

  Matt Sherman Matt has been helping small businesses make decisions since 2017. He has written reviews and articles across many different channels but specializes in the point of sale, payroll, and small business insurance categories and has been quoted in articles for Fox Business, Forbes, and other publications. Prior to joining Merchant Maverick, Matt was a journalist and editor for 14 years for a pair of weekly newspapers. He is a graduate of the University of Oregon and currently resides in Gladstone, Oregon.

  Lead Staff Writer

  Last updated onUpdated August 24, 2024



Shelbi Wescott began working for Merchant Maverick in 2019 after 17 years as a journalism educator and publications advisor, where she has extensive knowledge of newsroom systems and editorial workflows. She has overseen multiple print and online publications and mentored hundreds of emerging writers. Shelbi is also an award-winning journalist, published author, and former small business owner with a Master of Arts in Teaching from Lewis and Clark College in Portland, Oregon.

REVIEWED BY

Shelbi Wescott Shelbi Wescott began working for Merchant Maverick in 2019 after 17 years as a journalism educator and publications advisor, where she has extensive knowledge of newsroom systems and editorial workflows. She has overseen multiple print and online publications and mentored hundreds of emerging writers. Shelbi is also an award-winning journalist, published author, and former small business owner with a Master of Arts in Teaching from Lewis and Clark College in Portland, Oregon.

Managing Editor

If you’re looking for small business health insurance, you’ve come to the right place.

Knowing what to look for in small business health insurance plans can be tricky, and the options can remain overwhelming. We’re here to break down some of our favorite providers and walk you through the pros/cons of each.

Learn More About Our Top Picks

Read more below to learn why we chose these options.

Why Do You Need Small Business Health Insurance?

Small business health insurance plans are important for business owners like you for a number of reasons.

• It May Be A Legal Requirement: You may be legally required to offer health care to your employees depending on the size of your business. If your business is considered an Applicable Large Employer (ALE) with 50 or more full-time employees for more than six months out of the year, then you will need to provide your employees with health insurance as a legal requirement of the Affordable Care Act.
• Happy & Healthy Employees Are Better For Business: You can do your part to keep your employees happy and healthy, which leads to a better and more productive work environment. Worries about money and health are high on the list of what creates stress in an employee’s life, but health insurance can relieve that stress and make an employee feel valued.
• Keeps You Competitive In The Job Market: Your competitors are most likely already offering it, so staying competitive in the job market will often come down to health care benefits. The reality is that employees want health insurance and are looking for businesses that offer it. These target employees may not consider job offers that come without the benefit of health insurance.
• Helps With Taxes: You can even save on taxes by offering a health care plan depending on the size of your company and your annual income. If you have fewer than 25 employees, your average yearly income is less than $50,000, and you offer health insurance, then you may be eligible for tax credits. Even if you aren’t, the money you spend on employee health is tax deductible. Employee-paid premiums are tax-exempt. Talk to your accountant or tax professional to see if you qualify.

To learn more about small business health insurance and why you should be offering it to your employees, check out our ultimate guide to small business health insurance.

The 5 Best Small Business Health Insurance Providers

The best small business health insurance options will be affordable, have ample features for both business owners and employees, and offer unique coverage for your unique business. The best options include Kaiser Permanente, BlueCross BlueShield, United Healthcare, Oscar, and Aetna.

Kaiser Permanente: Best Integrated Health Care

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BlueCross BlueShield: Best Provider Network

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UnitedHealthcare: Best Additional Coverage

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Oscar: Best Telehealth

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Aetna: Best For Self-Insured

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Our Methodology For Choosing The Best Health Insurance Options For Small Business

We considered more than 10 different small business health insurance providers to create this list. We rated these providers based on how easy it is to get a quote, the type of plans offered, features specifically designed to benefit small businesses, member satisfaction, and overall coverage.

We specifically looked at each provider’s personalized quote process. The best companies offer fast, easy, and accurate quotes for prospective new members and tailor their process specifically for owners of small businesses.

We also weigh unincentivized reviews from actual members. That means checking review sites like the Better Business Bureau, G2, and Consumer Reports. We consider members’ experience with these insurance providers and use that to supplement our ranking factors.

We gathered information from each company’s website and representatives to create this list. The Merchant Maverick editorial team reviews information to ensure accuracy.

What You Should Look For In A Health Insurance Provider

When deciding on a small business health insurance provider, you need to keep a few things in mind. You want to make sure that you’re getting the best balance of coverage for your employees and cost as a business owner.

The biggest things that will impact the cost of your insurance coverage are:

• Medical history
• Prescription drug coverage
• Number of doctor visits per year
• Available specialists
• Specific employee medical needs
• Plans for pregnancy, surgery, etc.

While it is illegal for you as an employer to ask your employees for health information, you need to ask yourself the following questions: What benefits do my employees need? How much choice am I giving them? What will their out-of-pocket costs be?

Once you receive a quote from a prospective insurance provider, you will need to evaluate it based on the following criteria:

• Quality of medical care
• Member experience ratings
• Wellness Programs
• Administrative ranking

Learn more about how to understand your small business health insurance quote.

How Much Does Health Insurance Cost For A Small Business?

The average cost for small business owners as of 2021 was $547 per employee and $1,175 for family coverage per month. Read more about how to understand your business insurance quote.

The cost of health insurance for a small business per employee is going to depend on the insurance provider, benefits, and type of plan. The average cost for small business owners as of 2021 was $547 per employee and $1,175 for family coverage per month.

Which Small Business Health Insurance Provider Is Right For Your Business?

This answer is going to depend on all of the factors we’ve gone over today. Do you want excellent telehealth? Integrated care? Get a quote and compare prospective insurance providers to make sure you’re offering the best small business health insurance plans for your employees.

Want more guidance on your small business health insurance journey? Check out our how-to guide and learn how you can offer insurance even if you only have one employee.

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