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Small Business

Group Health Plans for Small Businesses: What You Need to Know

March 14, 2026
·
LaQuentin Jenkins

You don't need to be a big company to offer health insurance. Small Business Health Options Program (SHOP) plans, level-funded plans, and association plans are all on the table for businesses with as few as 2 employees.

Tax advantages

Premiums you pay on behalf of employees are 100% tax-deductible. Employees pay their portion pre-tax through payroll deduction.

Retention math

Industry surveys consistently rank health insurance as the #1 or #2 benefit employees want. The cost of replacing one trained employee usually exceeds a year of their health premium contributions.

What to ask a broker

Get quotes from at least three carriers. Ask about census-based vs community-rated pricing. Find out what happens at renewal if you have a high-cost claim year.

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