Small business health plan options, compared
Small business health plans come in more shapes than most owners expect. A traditional group plan is one choice, not the only one. Here is what each option does, who it fits and how they compare on the rules that matter.
Small business health plans and added benefits
Start with a health option, then add the benefits your team will use.
- Small group health insurance Best fit: Most teams of 1 to 50 that want a traditional plan A fully insured plan from one carrier. You pay a fixed monthly premium, and ACA rules mean health history never changes your price.
- Level-funded health plans Best fit: Healthier teams open to a short health questionnaire A steady monthly cost that covers claims, admin and stop-loss protection. Low claims can mean a lower rate, and some plans refund part of the surplus.
- ICHRA Best fit: Teams spread across states, or owners who want a set budget You set a monthly allowance. Employees pick their own individual plans, and you reimburse them tax free. Works for any company size.
- QSEHRA Best fit: Businesses under 50 employees with no group plan A simple reimbursement plan with yearly limits set by the IRS. A low-cost first step for very small teams.
- Group dental and vision Best fit: Any employer adding benefits beside a health plan Low-cost add-ons employees use every year. Offer them with your health plan or on their own, paid by you, your team or both.
- Group life and disability Best fit: Employers rounding out a benefits package Employer-paid life insurance plus short-term and long-term disability coverage that protects your team's income. Group rates often beat individual policies.
The four health options side by side
Rules at a glance. Your quote shows what each one costs for your team.
| Small group | Level-funded | ICHRA | QSEHRA | |
|---|---|---|---|---|
| Who picks the plan | You choose one or more plans | You choose the plan | Each employee | Each employee |
| Your monthly cost | Fixed premium | Fixed amount, with a possible refund | The allowance you set | The allowance you set, up to IRS limits |
| Health questions | None | Short questionnaire | None | None |
| Company size | 1 to 50 (100 in four states) | Varies by carrier | Any size | Under 50 |
| Teams in several states | Harder | Harder | Easy | Easy |
| Counts toward the employer mandate | Yes | Yes | Yes, if affordable | Not applicable |
Choosing an option
Something else? Ask a licensed agent.
Which option is cheapest?
It depends on your team. Level-funded plans often win for young, healthy groups. ICHRA can win for teams spread across states or where individual plans are competitive. A fully insured plan is the steady choice when health history is a concern. We price them side by side so you do not have to guess.
Can I combine options?
Yes, within limits. Dental, vision, life and disability can sit beside any health option. An ICHRA can go to one class of employees while another class gets a group plan. A QSEHRA cannot sit beside a group plan.
Do you charge for help choosing?
No. Quotes and advice are free, with no obligation. We are paid by the carrier when you enroll, and small group premiums are the same whether you buy through an agent or not.
Not sure which fits? We will price them all
Tell us about your team. We will compare a group plan, level-funding and an ICHRA where they make sense, and explain the trade-offs.
- Free, with no obligation to buy
- Small group, level-funded and ICHRA compared
- A licensed agent handles your request