How to choose the right Health Insurance for Small Businesses? Running a small business is no small feat. You’re juggling sales, operations, and payroll, all while trying to keep your team motivated and healthy. But here’s the kicker: providing health insurance isn’t just about ticking a box—it’s about giving your team peace of mind, improving retention, and staying competitive in the job market.
If you’re feeling overwhelmed by all the options out there, don’t worry—you’re in the right place. I’ve done the homework, sifted through the fine print, and broken it down so you can find the best health insurance plans for your small business. Stick with me to the end, and I’ll even share tips on how to save big without compromising coverage. Let’s dive in!
Why Health Insurance Matters for Small Businesses
The Game Changer: Offering health insurance isn’t just a “nice-to-have”; it’s often the deciding factor for employees choosing to stick around or move on. A 2024 survey by the National Federation of Independent Business found that 72% of small businesses offering competitive benefits reported higher employee satisfaction and productivity.
Tax Breaks and Perks: Many governments provide tax credits or incentives to small businesses offering health insurance. For instance, in the U.S., businesses with fewer than 25 employees may qualify for the Small Business Health Care Tax Credit.
The 13 Best Health Insurance for Small Businesses in 2025
1. Blue Cross Blue Shield (BCBS)
Overview: BCBS is one of the most recognized names in the health insurance industry. Known for its wide network of providers, BCBS offers small businesses a variety of group health plans that can fit different needs and budgets.
Pros:
- Extensive Network: With access to over 90% of healthcare providers across the country, employees can choose from a broad range of doctors and hospitals.
- Flexible Plans: BCBS offers several plan types, from traditional PPOs to HDHPs, allowing small businesses to customize coverage based on employee needs.
- Solid Member Benefits: BCBS often includes wellness programs and telehealth services in their packages.
Cons:
- Premium Costs: BCBS premiums can be on the higher end, especially for small businesses in areas with fewer network providers.
- Complex Plans: The variety of plans can sometimes be overwhelming, making it a challenge for small businesses to select the right coverage.
Who It’s Best For: Businesses that want reliable coverage with a broad network and are willing to pay a bit more for that peace of mind.
2. UnitedHealthcare (UHC)
Overview: UnitedHealthcare is another giant in the insurance world. Their plans are known for flexibility, innovation, and extensive resources. For small businesses, UHC provides a range of options to help with both cost and care.
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Pros:
- Variety of Plans: UHC provides small businesses with PPO, HMO, and high-deductible health plans (HDHPs), which can help cater to various employee needs.
- Wellness Benefits: They offer discounts for health and wellness programs, which is a great perk for businesses wanting to promote healthier employees.
- Advanced Digital Tools: Their easy-to-use mobile apps allow employees to find doctors, manage prescriptions, and access telemedicine services.
Cons:
- Premiums: Depending on your location, UHC can sometimes be more expensive than other providers.
- Customer Service Issues: Some users report long wait times and difficulty resolving issues with claims and benefits.
Who It’s Best For: Businesses that value digital tools, and wellness programs, and are willing to invest in comprehensive coverage for their team.
3. Aetna
Overview: Aetna, part of the CVS Health family, is known for its robust plan options and high-quality customer service. Aetna’s small business health insurance plans are customizable, making them a great choice for companies of any size.
Pros:
- Affordable Options: Aetna is often considered one of the more affordable health insurance providers, offering competitive pricing for small businesses.
- Customer Service: Aetna is praised for its responsive customer service and helpful online resources.
- Wide Network: Their network includes more than 1 million doctors and healthcare professionals, making it easy for employees to find care.
Cons:
- Limited Coverage in Some Areas: While Aetna has a large network, it can be less available in rural or remote areas, limiting access to care in certain locations.
- Complex Plans: As with many insurance companies, understanding the ins and outs of Aetna’s coverage can be challenging without careful research.
Who It’s Best For: Small businesses looking for affordable options without sacrificing the quality of care for their employees.
4. Humana
Overview: Humana offers a wide variety of health insurance plans to small businesses, with a focus on affordable coverage and health management programs. They provide a balanced approach to health coverage, combining affordability with care options.
Pros:
- Affordable Premiums: Humana is often a more affordable option for small businesses, offering a variety of plan options at different price points.
- Focus on Preventive Care: Humana offers wellness programs that emphasize prevention and disease management, which can help reduce long-term healthcare costs.
- Digital Health Tools: Their digital tools allow employees to manage their health, get information on doctors, and access telemedicine services.
Cons:
- Limited Network in Some Regions: Depending on the location of your business, the network of doctors and hospitals might be smaller than some other providers.
- Complicated Plan Structures: Humana’s health insurance plans can be difficult to navigate for those who are not familiar with healthcare terms.
Who It’s Best For: Small businesses that prioritize affordable care and preventive services while maintaining flexibility for their employees.
5. Kaiser Permanente
Overview: Kaiser Permanente is a health insurance provider that emphasizes preventative care and integrated health systems. They are well-regarded for providing high-quality, efficient care, particularly in areas where they have a strong presence.
Pros:
- Quality Care: Kaiser Permanente is known for its integrated approach, where the insurance, care providers, and hospitals are all part of one system, ensuring coordinated care.
- Health and Wellness Programs: They offer various wellness programs that focus on overall well-being, including stress management, fitness, and chronic disease prevention.
- Excellent Customer Service: Members report high satisfaction with their services and customer support.
Cons:
- Limited Availability: Kaiser Permanente is only available in certain regions, so if your small business is located outside those areas, you may not have access to their plans.
- Restricted Plan Options: Their plans may not be as flexible as some other providers, especially if you’re looking for PPO-style options.
Who It’s Best For: Small businesses located in areas where Kaiser Permanente operates and that want a comprehensive, well-coordinated care experience.
6. Cigna
Overview: Cigna is a global health insurer that provides small businesses with a broad range of health insurance options, including medical, dental, vision, and even mental health coverage.
Pros:
- Comprehensive Coverage: Cigna’s health insurance plans cover a wide array of services, including preventive care, mental health support, and wellness benefits.
- Global Reach: If your small business has international employees or clients, Cigna offers plans that cater to global healthcare needs.
- Discounts for Wellness Programs: Cigna offers discounts on various health services and wellness programs for small businesses that focus on employee health.
Cons:
- Higher Costs: Cigna’s premiums can be on the higher side compared to other insurers, especially for businesses with fewer than 50 employees.
- Complex Terms: Understanding all the benefits and options can be tricky, and navigating the fine print requires extra attention.
Who It’s Best For: Small businesses that want a global reach, diverse coverage options, and robust wellness programs, and are willing to invest a bit more in healthcare.
7. Oscar Health
Overview: Oscar Health is a relatively new player in the health insurance market but has quickly made a name for itself by focusing on technology and customer-centric service. Known for its easy-to-use apps and modern approach to healthcare, Oscar is a good option for small businesses that want to offer cutting-edge health insurance to their employees.
Pros:
- Tech-Forward Approach: Oscar’s mobile app and online portal make managing health insurance simple. Employees can schedule appointments, check claims, and get personalized health tips right from their phones.
- Affordable Plans: Oscar offers competitive pricing and plans designed to keep costs down without sacrificing care. This is especially helpful for small businesses that need affordable options.
- 24/7 Concierge Service: Oscar provides employees with access to a concierge team that helps with finding doctors, answering questions, and resolving issues, making the entire process more personal and hands-on.
Cons:
- Limited Availability: While Oscar is expanding, it’s not available everywhere, so your business may not have access to their plans depending on your location.
- Smaller Network: Compared to larger providers like BCBS or UHC, Oscar’s network of healthcare providers is more limited, which could be a concern if you have employees in remote areas.
Who It’s Best For: Small businesses that prioritize technology and customer support and are based in regions where Oscar operates. Ideal for companies that want to offer innovative and tech-friendly healthcare solutions.
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8. Anthem
Overview: Anthem is one of the largest health insurers in the USA and provides comprehensive health insurance options for small businesses. Known for its vast provider network and solid reputation, Anthem offers both flexibility and reliable coverage.
Pros:
- Large Network of Providers: Anthem’s network is massive, which means your employees will have plenty of options when it comes to doctors and specialists.
- Wide Range of Plans: Anthem offers several plan options, including PPOs, HMOs, and HSAs, allowing you to pick a plan that works best for your business.
- Discounts and Wellness Programs: Anthem provides various wellness initiatives and discounts on health-related products and services, which can help improve employee health and reduce long-term costs.
Cons:
- Higher Premiums: Anthem’s plans tend to be on the pricier side, especially in states with high demand for healthcare services. Small businesses on a tight budget may need to look closely at their options.
- Customer Service Variability: Some businesses report mixed experiences with Anthem’s customer service, with issues such as delayed responses and difficulty with claims.
Who It’s Best For: Small businesses that want a broad network of doctors and healthcare providers, and are willing to pay higher premiums for more comprehensive and flexible coverage.
9. Bright Health
Overview: Bright Health is a newer health insurance provider with a focus on offering affordable plans that are both comprehensive and straightforward. Bright Health partners with a select number of doctors and hospitals to ensure quality care without the complexity of traditional insurance models.
Pros:
- Affordable Pricing: Bright Health’s plans are designed to be budget-friendly, which is a huge plus for small businesses that are trying to provide insurance without breaking the bank.
- Simple Plans: With Bright Health, you won’t have to deal with a ton of complicated options. The plans are straightforward to understand, which makes the decision process much simpler for small businesses.
- Quality Care: Despite their affordability, Bright Health still provides access to quality care with its carefully selected network of providers.
Cons:
- Limited Network: One of the main drawbacks of Bright Health is its more limited provider network compared to larger insurers. This could be a dealbreaker if your employees are located in areas without access to Bright Health’s partners.
- Less Flexibility: While the simplicity of Bright Health’s plans is a benefit for many, some businesses may find the lack of variety in plan types limiting.
Who It’s Best For: Small businesses looking for affordable, no-frills health insurance that doesn’t sacrifice quality care, and are located in areas where Bright Health has a strong network.
10. Health Net
Overview: Health Net is a health insurance provider that offers a variety of plans, including options for small businesses. They provide high-quality coverage at competitive prices and are known for their customer service and comprehensive health solutions.
Pros:
- Affordable Plans: Health Net is considered an affordable option for small businesses, offering health plans with competitive pricing.
- Strong Provider Network: While not as extensive as some others, Health Net still offers a robust network of doctors, hospitals, and specialists, ensuring that employees have access to a wide range of care options.
- Wellness Programs: Health Net includes wellness programs that focus on preventive care and health management, which can benefit employees and help reduce overall healthcare costs.
Cons:
- Regional Availability: Health Net is more prominent in certain regions, particularly on the West Coast, so businesses outside of those areas may find limited options.
- Complicated Plans: Some businesses report that Health Net’s plans can be difficult to navigate, especially when it comes to understanding the differences between coverage tiers and deductibles.
Who It’s Best For: Small businesses in regions where Health Net operates and those that need affordable plans with a focus on wellness and preventive care.
How to Choose the Right Health Insurance for Your Business
Choosing the right health insurance for your small business is more than just picking a plan; it’s about making sure you provide the right coverage that meets your needs and your employees’ needs. Let me walk you through the key steps to make the process smoother.
1. Understand Your Budget
Your budget is the starting point for selecting a plan. You need to determine how much you can afford to spend on premiums, deductibles, and out-of-pocket costs. Start by estimating what you’re comfortable contributing monthly and annually. Remember, you’ll likely need to cover at least a portion of your employees’ premiums, so balance cost with value.
2. Assess Your Employees’ Needs
Get a sense of what your employees need from their health insurance. Are they young and healthy, or do they have specific medical needs? For a generally healthy workforce, high-deductible plans with lower premiums might make sense. However, if your team includes older employees or those with chronic conditions, you may want to offer a more comprehensive plan with lower out-of-pocket costs.
You can gather this information through surveys or open discussions about healthcare priorities. If your business is growing or plans to grow, consider the scalability of your choice to accommodate more employees.
3. Decide on the Type of Plan
Health insurance plans come in different types. Here are the most common:
- PPO (Preferred Provider Organization): Offers flexibility in choosing healthcare providers and doesn’t require referrals for specialist visits. Ideal if your employees value freedom in healthcare choices.
- HMO (Health Maintenance Organization): Typically has lower premiums but requires employees to choose a primary care doctor and get referrals to see specialists. Great for employees who prefer a more managed approach to healthcare.
- HDHP (High Deductible Health Plan): Offers lower premiums, but with higher deductibles. Best for businesses looking to offer cost-saving options, especially if combined with a Health Savings Account (HSA).
- EPO (Exclusive Provider Organization): Similar to an HMO but with no need for referrals. It limits coverage to a specific network of providers but offers more flexibility than an HMO.
Think about the type of plan that will match both your budget and your employees’ preferences.
4. Review Coverage Options
Make sure the plan you choose covers the basics that employees expect, like doctor visits, emergency care, hospital stays, and prescriptions. Additionally, check if the plan offers special features like mental health coverage, wellness programs, or maternity care. A comprehensive plan may have a higher premium, but it’s often worth the investment in the long run.
5. Consider Your Provider Network
Some insurance plans limit which doctors, hospitals, and specialists employees can see. A narrow network can mean fewer options, while a broader network gives employees more freedom to choose their healthcare providers. For businesses with remote employees or employees in different states, a nationwide or multi-state network is essential.
Check with the insurance provider to confirm which doctors and hospitals are included in the plan, especially if you have employees in different locations.
6. Look Into Employee Contribution and Cost Sharing
As the employer, you’ll need to decide how much of the premium you will cover. While you’re not required to pay for the entire premium, most employees expect some level of contribution. Typically, businesses cover anywhere from 50% to 80% of the premium cost, with employees paying the remaining portion.
You’ll also want to examine how much employees will need to pay in terms of deductibles, copays, and coinsurance. These out-of-pocket expenses can impact your employees’ satisfaction with the plan, so ensure that the costs are reasonable for your workforce.
7. Think About Wellness Programs
Health insurance plans aren’t just about treating illnesses—they’re also about promoting healthy lifestyles. Some providers offer wellness programs that can help your employees maintain good health and reduce healthcare costs in the long term. These might include discounts for gym memberships, smoking cessation programs, or free health screenings.
A wellness program could be a valuable addition to your benefits package, improving employee satisfaction and retention.
8. Seek Expert Guidance
Choosing the right health insurance can be complicated, and it’s okay to ask for help. Work with an insurance broker who can help you compare different plans and find the best fit for your business. Brokers have access to a wide range of options and can help you navigate the complex world of health insurance.
9. Evaluate and Compare Plans
Once you’ve narrowed down your choices, it’s time to compare the plans. Consider factors like:
- Monthly premiums
- Deductibles and out-of-pocket costs
- Coverage for medical services (doctor visits, hospital stays, prescriptions)
- Provider network
- Additional benefits (wellness programs, mental health coverage)
Use online comparison tools, or speak directly with the insurance providers to get detailed information on each option. The more information you have, the better equipped you’ll be to make the best choice for your business and your employees.
Frequently Asked Questions (FAQ) on Health Insurance for Small Business
1. What is the best health insurance for small businesses?
The best health insurance for small businesses depends on factors like location, budget, and employee needs. Some top choices are Blue Cross Blue Shield, UnitedHealthcare, Aetna, and Humana, as they offer comprehensive plans and wide provider networks. If you’re looking for affordable and tech-driven options, Oscar Health and Bright Health might be ideal.
2. How can I offer health insurance to my employees?
To offer health insurance, you can set up a group health plan through an insurance provider. The process typically involves choosing a plan, discussing options with an insurance broker or provider, and determining how much your business will contribute toward premiums. Providers like Cigna and Kaiser Permanente offer tailored plans for small businesses.
3. Can a small business get affordable health insurance?
Yes! Many insurers offer plans that are budget-friendly for small businesses. Providers like Health Net and Bright Health focus on providing affordable, simple plans. Comparing quotes from several providers can help ensure you get the best deal for your business.
4. How do I choose the right health insurance for my small business?
Start by assessing your employees’ needs, such as whether they need access to a broad network of doctors, prescription coverage, or wellness programs. Consider factors like the cost of premiums, out-of-pocket expenses, and the provider network. It’s important to balance affordability with the quality of care you want to offer.
5. Can my employees get individual health insurance if we offer a group plan?
Yes, employees can still apply for individual insurance through the marketplace or other options, even if you offer group health insurance. However, they may not be eligible for subsidies if your business provides an affordable option. Encourage employees to review all their options.
6. Is it mandatory for small businesses to offer health insurance?
No, small businesses with fewer than 50 full-time employees don’t need to offer health insurance. However, offering insurance can be a valuable benefit that helps attract and retain talent. For businesses with 50 or more full-time employees, offering health insurance is required under the Affordable Care Act (ACA).
7. What are the main types of health insurance plans for small businesses?
Small businesses can choose from various plan types, including:
- PPO (Preferred Provider Organization): Offers flexibility in choosing healthcare providers and specialists.
- HMO (Health Maintenance Organization): Requires employees to choose a primary care physician and get referrals for specialist care.
- HDHP (High Deductible Health Plan): Typically has lower premiums but higher deductibles.
- HSA (Health Savings Account): Allows employees to set aside pre-tax dollars for medical expenses, often paired with an HDHP.
8. Are there health insurance tax credits for small businesses?
Yes, small businesses may qualify for the Small Business Health Care Tax Credit if they have fewer than 25 full-time equivalent employees and meet other criteria. This credit can help offset the cost of offering health insurance to your employees, reducing the financial burden on your business.
9. Can I switch health insurance providers after purchasing a plan?
Yes, you can switch health insurance providers, but it usually happens during the open enrollment period. However, if you need to switch outside of this period, special enrollment periods may apply, such as for life events like employee turnover or a change in business structure.
10. How do I manage health insurance for a remote workforce?
Managing health insurance for a remote workforce can be tricky, as not all providers offer national coverage. It’s important to choose an insurance plan that provides nationwide access to healthcare providers, like UnitedHealthcare or Blue Cross Blue Shield, which operate in many states and offer telehealth services for convenience.
11. How do wellness programs work in small business health insurance?
Wellness programs are initiatives offered by some health insurance providers to encourage healthier lifestyles and reduce overall healthcare costs. These programs may include discounts on gym memberships, smoking cessation programs, or rewards for health screenings. Providers like Cigna and Anthem offer such programs to help businesses keep employees healthy and engaged.
12. What’s the difference between a PPO and an HMO?
A PPO (Preferred Provider Organization) gives employees more flexibility to see any doctor without needing a referral, although it may come with higher premiums. An HMO (Health Maintenance Organization) requires employees to select a primary care physician and get referrals to see specialists, but it tends to have lower premiums and out-of-pocket costs.
13. How do I know if my employees are eligible for health insurance?
Most insurance providers have eligibility requirements based on the number of hours employees work and their job status (full-time vs part-time). Typically, full-time employees who work 30 hours or more per week are eligible, but it can vary by provider. You should check with the insurance provider to confirm eligibility.
Conclusion: Right Health Insurance for Small Business
There’s no one-size-fits-all solution when it comes to health insurance for small businesses. The best plan for you will depend on a variety of factors, including your business size, location, budget, and the health needs of your employees. Providers like Blue Cross Blue Shield, UnitedHealthcare, Aetna, Humana, Kaiser Permanente, and Cigna offer reliable and comprehensive plans, but newer companies like Oscar Health and Bright Health are also worth considering, especially if you value tech-forward solutions and affordability.
Remember, when selecting a health insurance provider, it’s important to take a holistic view of what your employees need. Look at the network size, premiums, coverage options, and any additional benefits like wellness programs or telehealth services. And don’t hesitate to reach out to multiple providers for quotes and consultations.
Choosing the right health insurance plan is an investment in your employees’ health and your business’s future. By making the right choice, you’ll not only help keep your team healthy, but you’ll also attract and retain top talent. So, take your time, weigh your options, and make the decision that’s best for you and your business.