6 Best Health Insurance Providers for Small Businesses

by Derek Jones, 10 minutes read
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6 Best Health Insurance Providers for Small Businesses

Small business owners are required to make financial, managerial and operational decisions to protect and grow their business. One of the most important decisions that need to be made by small business owners relates to finding a suitable health insurance provider. There are many insurance providers to choose from, which can make the decision more complicated. However, the level of choice makes it more likely that you will find the right plan for your workforce. Small business health insurance is suitable for businesses with at least two members of staff, but less than 50 employees. Read below to learn more about the best health insurance providers for small businesses.

Another important decision facing small business owners is how they plan on handling their employee scheduling procedures. Make the wrong choice and they’ll be stuck spending hours each week when it could have been done in minutes. To see exactly how Deputy can strengthen your business, click on the button below to begin your free trial.


Group health plans

Small business group health insurance normally costs less for employees in comparison to individual healthcare plans, offering the same benefits. This is because the insurance risk is spread over a group, as opposed to just an individual. Group insurance offers small business employees and possibly their dependents health insurance coverage.

6 Best Health Insurance Providers for Small Businesses

Here are some benefits for small business owners when using group health plans:

  • Hire the best employees

Professionals and graduates may choose to work for small businesses for a variety of reasons. For instance, they may prefer to work in a non-corporate environment. Offering a comprehensive benefits package, including healthcare, will help your business to attract the right candidates.

  • Employee retention

A high turnover rate is expensive for any business but can be particularly damaging to small businesses. The time and financial resources that go into onboarding and training can be wasted if your employees leave. Offering health insurance shows your employees that you are dedicated to their well being.

  • Cost savings

6 Best Health Insurance Providers for Small Businesses

Comparing different group health insurance providers will help you to work out the effect on your bottom line. You could secure premiums on a lower per-person basis by signing up to a group health plan.

  • Cohesive workforce

It is important for a small business to encourage a culture of trust amongst employees. Providing group health insurance helps to build a closer team because your employees will be using the same community programs to improve their wellbeing.

  • Tax benefits

Your small business group health insurance premiums can normally be paid from your employees’ pre-tax salary. You can deduct your employees’ contribution from their paycheck before you deduct taxes. This means that you will decrease the amount of taxes paid by your employees, because their taxable income has been reduced. As a result, your employees can make substantial savings over the long term.

If you’re looking to secure health insurance for your small business employees, below are six of the best health insurance providers that you should consider.

1. Humana

If your small business employs a minimum of two employees and a maximum of 50 employees, Humana provides health plans that could suit your needs. The options available to you will depend on your state. Therefore, you need to make inquiries to find out the specific details for your region.

6 Best Health Insurance Providers for Small Businesses-Humana

The following are different plans offered by Humana:

  • Level Funded Premium

If your small business has 10 or more employees, the Level Funded Premium could work for you. This plan includes pharmacy and medical plans as well as wellness programs. The Level Funded Premium is self-funded and it is possible to obtain premium tax savings and also a refund for any surplus claims.

  • Coinsurance Plan

If you want to offer your employees 100% coverage for preventative exams and discounts for additional services with in-network providers, then you should consider the coinsurance plan. Under this plan, your employees contribute a percentage of the price that you and Humana agree to.

  • Humana Simplicity

6 Best Health Insurance Providers for Small Businesses

This plan lets your employees set their own copay for relevant services. It also offers in-network preventative care. The Humana Simplicity plan pays 100% for covered services after all out-of-pocket expenses are taken care of.

  • High Deductible Health Plan

If you choose the High Deductible Health Plan, you’ll be able to offer your employees low premiums when they accept a higher deductible. Medical, prescription drugs and annual in-network examinations are covered by this plan. It is also possible to pair this plan with health savings accounts.

  • Self-Funded Plan

This plan will provide the reassurance of predictable costs, as you can cover your premium with a monthly fee. You will also receive administrative support from the Self-Funded Plan. Generally, Self-Funded Plans mean your employees will benefit from paying lower premiums.

  • Copay Plans

With the Copay plan, your employees can pay one flat fee for services and pay less for the care that is received when healthcare facilities and doctors are in-network. This plan covers 100% of yearly in-network examinations.

2. Harvard Pilgrim Health Care

Harvard Pilgrim Health Care is mostly known for operating in Connecticut, New Hampshire, Maine, and Massachusetts. However, its website indicates it can also cover businesses outside of these areas. Harvard Pilgrim Health Care is a non-profit provider that offers both individual and business health plans.

6 Best Health Insurance Providers for Small Businesses-Harvard Pilgrim

The following are some of the plans provided by Harvard Pilgrim Health Care:

  • Access America

This plan offers coverage for businesses that are multi-state employers. You can select the benefit options that will provide the best value for national coverage. You can also select between fully funded or self-insured funding arrangements.

  • ElevateHealth HMO

Businesses that are based in New Hampshire can take advantage of the ElevateHealth HMO plan. If you opt for this plan, your employees must get care from ElevateHealth providers and hospitals, unless it’s an emergency. The ElevateHealth HMO plan also provides health savings account compatible designs.

3. UnitedHealthcare

UnitedHealthcare falls under the umbrella of the UnitedHealth Group, which is the largest insurer in the U.S.

6 Best Health Insurance Providers for Small Businesses-United Healthcare

The following are healthcare plans provided by UnitedHealthcare:

  • UnitedHealthcare Choice

This healthcare plan provides coverage for small businesses with two employees and extends to companies with more than 5,000 employees. The UnitedHealthcare Choice plan is open-access, which means your employees can visit any healthcare center or doctor of their choice. The plan includes options, such as coinsurance options, and fixed dollar copayments.

  • UnitedHealthcare Choice Plus

If you choose the UnitedHealthcare Choice Plus option, you’ll receive the same benefits as UnitedHealthcare Choice, with the additional coverage of out-of-network doctors. This added coverage is accompanied by a higher deductible and a higher coinsurance payment.

  • UnitedHealthcare Options PPO

If you want your employees to benefit from extensive discounts for using in-network care, you should consider the UnitedHealthcare Options PPO plans. Your employees will be able to choose any doctor without a referral. With this plan, your employees must get approval for network services, whether they’re in-network or out-of-network. Higher deductibles may apply when using out-of-network doctors.

4. Kaiser Permanente

Kaiser Permanente has around 10.6 million members and was established in 1945. It is a not-for-profit organization and customers can get care and treatment from Kaiser Foundation hospitals and medical centers. Kaiser Permanente is known for providing excellent customer service. This organization has also won many awards.

6 Best Health Insurance Providers for Small Businesses-Kaiser Permanente

The National Committee for Quality Assurance (NCQA) has found that

Kaiser Permanente has the highest performing commercial and Medicare plan (or is tied for the highest) in every geographic region it serves”.

You can apply for a business health insurance plan with Kaiser Permanente if your business is based in Georgia, Colorado, Virginia, Maryland, Washington, D.C., Washington, Oregon, and Hawaii.

Here are some of the healthcare plans offered by Kaiser Permanente:

  • Deductible HMO Plans

With this plan, your employees have the option of paying a lower premium with a higher deductible. Your employees can match this plan with a health reimbursement arrangement or a health savings account in order to gain more savings on their tax. You should consider this Deductible HMO plan if you want to offer your employees excellent healthcare options while paying less for their premiums.

  • PPO Plans

Using the Kaiser Permanente PPO Plans allows your employees who do not live in the preferred provider area to use a licensed doctor of their choice without the need for a referral. Your employees can get a discount if they use in-network doctors and healthcare facilities.

  • The Point-of-Service Plans

These plans combine the best of the HMO, PPO and POS plans into a single policy. If you choose this plan, your employees will have the freedom to select healthcare from all Kaiser Permanente provider facilities, PHCS network doctors or other licensed providers. Your employees could pay lower premiums with this plan as well as having the freedom to use out-of-network doctors.

5. BlueCross BlueShield

Blue Shield Blue Cross is part of The Blue Cross Association which is a global company that operates in over 170 countries. In the U.S, more than 99 million people are covered by a policy provided by the Blue Shield Blue Cross. If you want to offer your employees the most choice in relation to seeing in-network doctors, you should consider using Blue Shield Blue Cross. This is because it’s one of the largest healthcare providers. This means your employees will receive a preferred provider discount if they choose in-network facilities or doctors.

6 Best Health Insurance Providers for Small Businesses-BlueCross BlueShield

You need to check with Blue Shield Blue Cross to find out if they operate in your state and which conditions apply. You have a wide selection of plans to choose from as Blue Shield Blue Cross offers more than 30 plan options. These plans contain various out-of-pocket expenses, deductibles, preferred provider options, copayment, and coinsurance.

6. Aetna

6 Best Health Insurance Providers for Small Businesses-Aetna

This health insurance provider offers health insurance for small businesses that employ a minimum of two and a maximum of 50 people. Aetna is one of the largest health insurers in the U.S and has a strong financial rating.

The following are health plans offered by Aetna:

  • Aetna HealthFund One-to-One Employer Overview

You can use this plan with the Aetna small business plan options. When you decide which plan you want for your business, you match it with a health savings account or health fund to pay less deductible and out-of-pocket fees. The HSA and HRA plans will be tax-free for your employees and tax deductible for you.

  • Traditional Choice Health Insurance Plan

This plan gives your employees the choice to see any licensed specialist or doctor without the need for a referral. However, they may need to get approval for specific services. You should check the benefits summary of your policy for the details of the services where approval is needed. If your employees are signed up to the Traditional Choice Health Plan, they will need to pay for their care when they see their doctor and will get their money back after they have submitted a claim.

  • Open Choice Plan

This plan gives your employees the option to see any doctor or specialist they choose. However, in-network doctors attract lower rates. Your employees do not need a referral if they see an in-network doctor.

Health insurance quotes

Cost to your small business is one of the biggest considerations when offering your employees health insurance. As well as comparing important features, such as the number of in-network specialists and doctors. You’ll need to find the most cost-effective healthcare plan for your small business.

In order to secure the best deal for your small business, you should select a broker to provide health insurance quotes. You can also use healthcare comparison websites like ehealthinsurance.com and healthmarkets.com to compare health insurance quotes yourself. Alternatively, contact the healthcare providers directly to negotiate the price of premiums. You should take the time to consider as many health insurance quotes as possible while comparing features when deciding on the best health insurance provider for your small business.

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