Ways a small business can offer coverage
There is more than one way to help employees with health insurance. The right choice depends on your team size, your budget and how much control you want over the plan.
- Group health plan. One plan, or a choice of plans, offered to eligible employees. You choose how much of the premium you contribute.
- SHOP Marketplace. The Small Business Health Options Program is for employers with up to 50 full-time-equivalent employees.
- Health reimbursement arrangements. With an ICHRA or a QSEHRA, you reimburse employees tax-free for individual coverage they choose themselves, up to an amount you set.
The Small Business Health Care Tax Credit
Some small employers with fewer than 25 full-time-equivalent employees who pay average wages under a set limit, and who buy coverage through SHOP, may qualify for a tax credit. Your tax professional can confirm whether your business qualifies.
What Davis does for employers
- Learns about your team, your budget and what employees need.
- Compares group and reimbursement options side by side.
- Helps set up enrollment and answers employee questions.
- Reviews the plan with you at every renewal.
Self-employed with no employees?
If it's just you, see health insurance for the self-employed.
Common questions
How many employees do I need for a group plan?
It depends on the insurer and plan type. Many small group options start at one or two eligible employees. Davis can check what fits your business.
Do I have to pay the whole premium?
No. Employers usually contribute a share and employees pay the rest. Davis helps you choose a contribution level.
When can I start a group plan?
Small group coverage can generally start during the year, not only at Open Enrollment.
