Real answers for your healthcare questions
What health insurance options can a small business offer employees?
Answer
Small businesses can offer traditional group health insurance or, in some situations, use reimbursement arrangements that help employees pay for individual coverage. The best approach depends on business size, budget, workforce, state market, and tax rules.
What to Know
Options can include small group plans, SHOP coverage where available, Qualified Small Employer HRAs, Individual Coverage HRAs, and other benefit arrangements. Each option has eligibility, notice, reimbursement, and tax requirements that need to be followed correctly.
What to Do Next
Start by defining how much the business can contribute and whether you want one group plan or more employee choice. Then review the current federal and state rules with a benefits professional or qualified adviser before implementing the program.
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