Group Benefits on a Budget: Smart Health Plan Options for Small Businesses 

Offering health insurance may often feel like a significant financial strain for small businesses, but it doesn’t always have to be. With the right strategy, even companies with limited financial resources can provide meaningful group benefits that may garner significant financial impacts for employees and the organization as a whole.

Why are Group Benefits Important?

Group benefits often go beyond just offering health insurance. The right offerings can also help small businesses with the following:

• Attracting and retaining talent in competitive job markets

• Boosting employee morale and productivity by reducing stress and helping employees maintain healthy work-life balances

• Creating a healthier workforce, potentially lowering absenteeism

Are Small Businesses Required to Offer Health Insurance?

Under the Affordable Care Act (ACA), businesses with fewer than 50 full-time equivalent employees are not required to offer health insurance. However, those that do may enjoy the following advantages:

• Qualifying for the Small Business Health Care Tax Credit

• Improving their competitiveness in the labor market

• Maintaining a healthy and productive workforce

What Group Health Insurance Options Should My Small Business Consider?

Small businesses have several flexible options that may align with their budget:

• Small group health insurance plans—Available through brokers or the Small Business Health Options Program (SHOP), these plans may offer tax advantages and predictable costs.

• Health reimbursement arrangements (HRAs)—Employers can reimburse employees for individual insurance premiums and medical expenses, often with more control over costs.

• Qualified small employer HRAs (QSEHRA)—These are designed for businesses with fewer than 50 employees and may allow tax-free reimbursements for health expenses.

• Association health plans (AHPs)—Joining with other businesses in an industry or region may provide access to more affordable group health insurance rates.

• Telehealth and supplemental benefits—Additions like virtual health care options and dental or vision coverage can enhance a benefits package.

We’re Here to Help

If you own or operate a small business in , the team at True Grown Insurance Services , LLC is here to help you assess your options and find the right health plan and group benefits. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.