Health Insurance for Small Business Owners

Health Insurance for Small Business Owners

health insurance for small business owners
Options for health insurance for small business owners

One of the concerns of small business owners is finding a health insurance plan for their employees. Fortunately, there are a number of options in the marketplace for companies with a small workforce, ranging from 2 to 50 employees.

Small companies usually buy health plans through the Small Business Health Options Program (SHOP) marketplace or an insurance broker. Employers may opt for a small group option that is available at a discounted rate, which is cheaper than buying individual insurance.

Read on to learn some of the best health insurance for small business owners.

1. Kaiser Permanente

Kaiser Permanente is a managed healthcare provider with an excellent financial strength ratings and has won numerous customer service awards. It offers health insurance plans to small business owners in several states including California, Colorado, Georgia, Hawaii, Maryland, Virginia, Washington, D.C., Oregon and Washington.

Kaiser Permanente has four health insurance policy options such as Traditional HMO Plans, Deductible HMO Plans, HRS and HAS-Qualified Plans, and Deductible HMO with HRA Plans.

Deductible HMO Plans – Employees may have a higher deductible but also lower premium. These plans can work together with a health savings account (HSA) or health reimbursement arrangement (HRA) for additional tax savings.

HRA and HSA-Qualified Plans – Offer employees tax-free funds to help compensate the healthcare fees. Those who are enrolled in these plans can access the same services as traditional HMO plan members.

TPPO plans – Enables employees to use any licensed doctor of their choice, even if they live outside the preferred provider area. You can get discounts when you access in-network doctors and healthcare facilities.

Point-of-Service Plan – This type of plan takes the best features of all the plans and integrates them into one policy. The member can get quality healthcare from any Kaiser Permanente provider facility, PHCS network physician, or any other licensed facility.

2. Humana

Humana has regional providers in various states. It has been keeping people insured since 1961 and has earned an A rating from AM Best. The company works with millions of medical and specialty partners around the country.

Its plans are designed to take care of your employees in every stage of health. From clinical programs, to maternity support, to chronic care management, they can provide the resources your employees need. Humana’s core plans for businesses include:

Canopy (small businesses with two to 50 employees), Efficiency (less than 50 employees but with lower premiums), Simplicity (all business sizes), High-deductible Health Plan (all business sizes), and Copay (all business sizes).

3. Aetna

Aetna is an insurance company that supports people’s healthcare needs since 1853. It has also earned an A rating with AM Best.  This company offers health plans for employers with less than 50 employees. Coverage options and plans are different per state. Here are some of the health insurance packages Aetna offers.

Open Choice Plan – Allows you to use any healthcare provider. However, if you choose a network doctor, rates could go lower. Out-of-pocket expenses could be higher if you visit an out-of-network provider.

Traditional Choice Health Insurance Plan – Lets you visit any licensed doctor or specialist without a referral, but you may need to get approved for certain kinds of services. When you have the traditional plan from Aetna, you first have to pay for your care when you visit the doctor, submit a claim, and then reimburse your expenses after.

Aetna HealthFund One-to-One Employer – This plan can go alongside any of the Aetna small business healthcare plan options. Once you pick your plan, you can pair it with a health fund or health savings account to lessen deductible costs, lower premiums, and receive online tools and free preventative care services. The HRA and HSA plans are tax-free for employees and tax-deductible for employers.

4. UnitedHealthcare

UnitedHealthCare is the largest single health insurer in the nation. It offers health insurance plans to small businesses. One of its best features is it allows members to access online care 24/7.

UnitedHealthcare Choice – Allows you to visit any doctor or healthcare facility of your preference. This health plan can cover two to over 5,000 employees. Other components of the plan include fixed dollar copayments, coinsurance options, and lower out-of-pocket costs if you use in-network doctors and clinics.

UnitedHealthcare Choice Plus – Has the same benefits as UnitedHealthcare Choice but with extra coverage for out-of-network doctors.

UnitedHealthcare Options PPO plan – This plan offers great discounts to employees who use in-network care. You also have the option to use any doctor without a referral. When using an out-of-network doctor, the costs of copayments and deductibles could be higher.

The Cost of Health Insurance for Small Business Owners

health insurance for small business owners
The range of costs of health insurance for small business owners

The cost of health insurance is different based on a number of factors. Some states have higher rates as compared to others. The price also varies depending on the number of employees, the type of insurance, and the cost of copay or deductibles. To find out the exact cost, it would be best to check with your provider.

Short Term Health Insurance

Related article:  What is an HMO plan? 

Health insurance plans for self-employed

Leave a Reply