Best Small Business Health Insurance for 2018

Read customer ratings and financial ratings for the best small business health insurance providers. Includes FAQs about group insurance plans.

5 min read • Last updated on December 11th, 2018

Small business health insurance is a solution for small businesses that is designed to provide health insurance to everyone in your company. Through a group insurance plan, your employees can have access to benefits and medical coverage at a discounted rate.

Best Small Business Health Insurance Providers:

Company

Average Customer Rating

AM Best Financial Rating

Aetna

3.8/5

A

Aflac

3/5

A-

Allstate

4/5

A+

Blue Cross

3.8/5

A-

Great West Life

3/5

A+

Humana

4.5/5

A-

Nationwide

4.5/5

A+

State Farm

4.3/5

A++

Sun Life Financial

3.8/5

A+

United Healthcare

4/5

A

Small Business Health Insurance FAQs:

What is the price range for small business health insurance plans?

A small business health insurance plan could cost anywhere from $350 to $600 per employee per month. The total cost of insurance for employees depends on the coverage options included in the plan and the number of employees that you have.

What is the significance of the AM Best financial rating?

AM Best's financial ratings are third-party ratings of the financial health of a company. Your insurance provider's financial rating is important because it reflects their ability to pay out claims.

How are group health insurance plans cheaper than individual plans?

Group health insurance is cheaper because the premiums are divided among your staff and the insurance provider will give you a group discount for combining coverage.

Is there health insurance for small business owners?

Yes. Employer health insurance is the same as employee coverage because even though you own the business, you are still technically an employee of the corporation. Health insurance for business owners is very important, so you qualify for the same coverage as the rest of your employees.

Small Business Health Insurance Requirements
Small Business Health Insurance Requirements:

Business must have between 2 and 50 employees and 70% of the employees must either enroll for the group plan or have coverage elsewhere in order to qualify for small business insurance.

What does the average small business health insurance cost?

The average cost for small business group health insurance is approximately $600 per employee per month or $7,200 per year.

Can you purchase health insurance for a small business with one employee?

In some states, a business that consists of one person is recognized as a group and can meet the requirements for small business medical insurance. Check your state laws to see if group insurance plans for one are allowed.

Small Business Group Health Insurance
Small Business Group Health Insurance Providers:
  • Aetna.
  • Aflac.
  • Allstate.
  • Blue Cross.
  • Great West Life.
  • Humana.
  • Nationwide.
  • State Farm.

Is there a term limit for small business insurance plans?

There are different small business health insurance options when it comes to terms, but most policies are billed on an annual basis. When the billing year ends, you can renew the policy if you want to or cancel if you find better business health insurance.

What is the Small Business Health Options Program?

The Small Business Health Options Program (SHOP) is a government program that partially funds health insurance for small business. You can enroll in SHOP through your insurance agency or through a SHOP broker.

Are small business insurance plans mandatory?

Just like general liability insurance, healthcare for small business employees is not mandatory. However, any business with over 50 full-time employees is required to provide health insurance.

What is the best small business health insurance in California?

  • Aetna.
  • Anthem Blue Cross.
  • Blue Cross of California.
  • United Healthcare.
  • Health Net.
  • Kaiser Permanente.
  • Oscar Healthcare.
  • Delta Dental.

Does insurance for small business employees also cover their family members?

Some small business group health insurance plans include coverage for spouses and children of employees. This option may cost extra, but often the additional cost is minimal.