Small businesses that offer health insurance to their employees see big rewards in finances (tax credits and benefits) and in operations (improved recruiting, better job satisfaction and higher productivity), yet too few small business owners are taking advantage of this opportunity. Show
The Federal Government Bureau of Labor Statistics indicates that while 88% of employers with over 500 employees provide company health plans, only 55% of small businesses (companies with fewer than 100 employees) do the same. Perhaps entrepreneurs believe that most health insurance options are beyond their reach, however, a business only needs one or more full-time employees to
qualify for most group plans. In this article, we’ll look at the different plan options available to small businesses, then give a rundown of the five best small business health care companies. Health plans for small business: What are the choices?Here’s a quick guide to the 6 main types of health insurance plan: 1. What is a Health Maintenance Organization (HMO)This type of plan varies greatly between states and insurance providers. Generally HMOs:
2. What is a Preferred Provider Organization (PPO)A PPO offers choice to patients but can be more expensive. PPO’s usually have the following features:
3. What is a Point of Service Plan (POS)A POS health plan offers some of the flexibility of a PPO with the lower costs of an HMO. A POS usually has:
4. What is a High Deductible Health Plan (HDHP)HDHP health plans are a risk unless you’re comfortable paying a large amount out-of-pocket in the event of medical care. Generally HDHP health insurance plans:
5. What is a Flexible Spending Account (FSA)The FSA is an account that both the employer and the employee contribute to from which the employee can pay for health care costs. FSAs vary, but most have the following features:
6. What is a Health Savings Account (HSA)An HSA is an account that the employee or employer can contribute to with pre-tax money to help with medical expenses. The features of a normal HSA are:
Top 5 health insurers for small businessesWe looked at the different providers and ranked our top 5 health insurance providers for small businesses in 2019. Here’s how they compare. 1. Best small business health insurance: Aetna
Aetna operates nationwide through a reasonably large network of health providers. This national network gives Aetna an advantage over regionally focused health insurance companies like Humana and Kaiser Permanente, while being competitive on price. Aetna’s health plans offer value for money, with good health coverage across their plans with reasonable premiums and deductibles. Aetna plans for small businessesAetna offer three types of small business health options programs:
Is Aetna worth it?Aetna’s main weakness maybe their lack of short-term plans. As it doesn’t affect company plans, this leaves Aetna in a strong overall position among health insurers for small businesses. Accessing the health benefits that come with Aetna is also easy, with the secure employer and member websites reducing bureaucracy and adding clarity. The added tools are also helpful. We rate Aetna as the strongest option nationally. However, check what’s available in your area from more locally-focused health insurers like Humana and Kaiser Permanente. See the full review of Aetna here. 2. Humana: Quality health insurance for local businessesUnlike big national healthcare providers like Aetna, Blue Cross Blue Shield (BCBS), and UnitedHealthcare, Humana is only available in 22 states. However, if your small business is located in the south, west, or midwest, you’ll likely be able to take advantage of Humana’s reasonably low health insurance premiums, copays, and out-of-pocket costs. They have other useful features and respectable coverage. While some of Aetna’s plans are best only for small businesses located in 22 states, their nationwide PPO plan allows members to find an outside local provider in any state. This is useful for employers with main offices in an area where Humana operate but also has remote workers or smaller regional offices elsewhere. Humana plans for small businessesHumana has a wide range of plans for individuals, groups, and businesses of different sizes. Humana health insurance plans suitable for small businesses are:
Is Humana worth it?Humana’s health plans provide impressive coverage. There are several added benefits like access to wellness centers and online tools. Humana has a good range of flexible and affordable plans to accommodate the different needs of small businesses. However, as the majority of Humana plans are only available in 22 states it’s difficult to recommend them as a national provider. Check to see if Humana is available in your area. If they are, Humana is a health insurance provider worth considering. See the full review of Humana here. Kaiser PermanenteLike Humana, Kaiser Permanente is only in a small number of states. However, within those areas, Kaiser Permanente has an impressive collection of doctors and facilities available. Kaiser Permanente has over 17,000 physicians, more than 600 medical or outpatient facilities, and 38 hospitals. They also have at least one plan that allows small business employees not located in one of their core areas to access outside providers. Kaiser Permanente is active in the following states and districts:
If your firm operates in one of these locations, you should consider Kaiser Permanente. Their premiums tend to be low compared to other top small business health options. Another advantage of Kaiser Permanente is that the quality of care your can access is consistent because they offer their own system of doctors, hospitals, and medical specialists. Kaiser Permanente plans for small businessesKaiser Permanente offers the following 6 types of healthcare plan appropriate to small businesses:
Is Kaiser Permanente worth it?Kaiser Permanente offers quality care across their network which, though large, is heavily concentrated in certain states. Fortunately, Kaiser Permanente offers a plan allowing access to outside providers in other regions. Kaiser Permanente offers a great choice of plans at affordable rates compared to many big national insurance providers, with excellent support and online tools that make planning and managing your healthcare less of a headache. See the full review of Kaiser Permanente here. UnitedHealthcareUnitedHealthcare is currently the largest health insurance provider in the United States. Their network includes 895,000+ physicians and health professionals, and 5,600+ hospitals. While they’re one of the most expensive health insurance providers we reviewed, they offer a number of valuable features, such as 24/7 access to online ‘virtual visits.’ Combined with their strong group of online features and wellness plans, the higher average cost may be justified for some small businesses. UnitedHealthcare plans for small businessesUnitedHealthcare small business plans are typically for companies of between 2 and 5,000+ people – a higher range than usual. Small business health plans from UnitedHealthcare include:
Is UnitedHealthcare worth it?The large UnitedHealthcare network is a big advantage along with excellent online tools and fairly consistent quality. Managing your small business or employee account is also easy. However, there are more affordable health insurance providers who may be more attractive to small businesses aiming to keep costs down. See the full review of UnitedHealthcare here. BlueCross BlueShield (BCBS)BlueCross BlueShield covers 99 million Americans and can be found in over 170 countries. 37 different organizations under the umbrella of Blue Cross Blue Shield operate nationally, so there’s variety both in provider and network depending upon location. BlueCross BlueShield plans for small businessesSmall businesses can use Blue Cross Blue Shield customized network solutions to get a plan with the right type and distribution of coverage. Blue Cross Blue Shield small group health insurance plans include:
Is BlueCross BlueShield worth it?Blue Cross Blue Shield offers a range of plans at a medium average price. The BCBS network is also large, meaning members giving greater choice in care providers. However, the structure of BCBS can be confusing and variations in local providers can mean real differences in the nature and quality of care available in different geographic areas. See the full review of BlueCross BlueShield here. Health insurance for small businesses: The final judgmentOf the top 5 health insurance providers we reviewed, Aetna came out on top as the best health insurer for small businesses. However, always compare local coverage options and prices before deciding on an employee’s health plan. Which health insurance is best for middle class?List of 5 Best Health Insurance Plans in India for Middle-Class Family in 2022. HDFC ERGO my health Suraksha – Gold Smart Plan.. Max Bupa Health Companion Individual.. Star Health Family Health Optima.. Oriental Insurance Happy Family Floater Insurance Plan.. Care Health Plan.. What company has the best health insurance?The two top-rated health insurance companies are Kaiser Permanente and Blue Cross Blue Shield, according to available state data from the National Committee for Quality Assurance (NCQA). Mid-tier insurers include Humana, Anthem, UnitedHealthcare and Aetna. The worst-rated health insurance companies are Cigna and Oscar.
What companies provide good health insurance?Best Health Insurance Companies of October 2022. Best Overall: Blue Cross Blue Shield.. Best Value Plans: Oscar.. Great for Dental Coverage: Bright Health.. Highest Quality Plans: Kaiser Permanente.. Best for MinuteClinic: Aetna CVS Health.. Great for Nationwide Coverage: United Healthcare.. |