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Are you a small business owner looking to offer health insurance to your employees? Check out our picks for the top five best small business health insurance providers.
Matt has been helping small businesses make decisions since 2017. He has written reviews and articles across many different channels but specializes in the point of sale, payroll, and small business insurance categories and has been quoted in articles for Fox Business, Forbes, and other publications. Prior to joining Merchant Maverick, Matt was a journalist and editor for 14 years for a pair of weekly newspapers. He is a graduate of the University of Oregon and currently resides in Gladstone, Oregon.
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Matt ShermanMatt has been helping small businesses make decisions since 2017. He has written reviews and articles across many different channels but specializes in the point of sale, payroll, and small business insurance categories and has been quoted in articles for Fox Business, Forbes, and other publications. Prior to joining Merchant Maverick, Matt was a journalist and editor for 14 years for a pair of weekly newspapers. He is a graduate of the University of Oregon and currently resides in Gladstone, Oregon.
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Shelbi Wescott began working for Merchant Maverick in 2019 after 17 years as a journalism educator and publications advisor, where she has extensive knowledge of newsroom systems and editorial workflows. She has overseen multiple print and online publications and mentored hundreds of emerging writers. Shelbi is also an award-winning journalist, published author, and former small business owner with a Master of Arts in Teaching from Lewis and Clark College in Portland, Oregon.
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Shelbi WescottShelbi Wescott began working for Merchant Maverick in 2019 after 17 years as a journalism educator and publications advisor, where she has extensive knowledge of newsroom systems and editorial workflows. She has overseen multiple print and online publications and mentored hundreds of emerging writers. Shelbi is also an award-winning journalist, published author, and former small business owner with a Master of Arts in Teaching from Lewis and Clark College in Portland, Oregon.
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Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.
If you’re looking for small business health insurance, you’ve come to the right place.
Knowing what to look for in small business health insurance plans can be tricky, and the options can remain overwhelming. We’re here to break down some of our favorite providers and walk you through the pros/cons of each.
Small business health insurance plans are important for business owners like you for a number of reasons.
It May Be A Legal Requirement: You may be legally required to offer health care to your employees depending on the size of your business. If your business is considered an Applicable Large Employer (ALE) with 50 or more full-time employees for more than six months out of the year, then you will need to provide your employees with health insurance as a legal requirement of the Affordable Care Act.
Happy & Healthy Employees Are Better For Business: You can do your part to keep your employees happy and healthy, which leads to a better and more productive work environment. Worries about money and health are high on the list of what creates stress in an employee’s life, but health insurance can relieve that stress and make an employee feel valued.
Keeps You Competitive In The Job Market: Your competitors are most likely already offering it, so staying competitive in the job market will often come down to health care benefits. The reality is that employees want health insurance and are looking for businesses that offer it. These target employees may not consider job offers that come without the benefit of health insurance.
Helps With Taxes: You can even save on taxes by offering a health care plan depending on the size of your company and your annual income. If you have fewer than 25 employees, your average yearly income is less than $50,000, and you offer health insurance, then you may be eligible for tax credits. Even if you aren’t, the money you spend on employee health is tax deductible. Employee-paid premiums are tax-exempt. Talk to your accountant or tax professional to see if you qualify.
The 5 Best Small Business Health Insurance Providers
The best small business health insurance options will be affordable, have ample features for both business owners and employees, and offer unique coverage for your unique business. The best options include Kaiser Permanente, BlueCross BlueShield, United Healthcare, Oscar, and Aetna.
Kaiser Permanente is hands down your best option for integrated small business health insurance. With an easy-to-use quote tool that will get you the numbers you need in under 15 minutes, Kaiser is an easy option for busy small business owners.
Why We Chose Kaiser Permanente For Small Business Health Insurance
Kaiser Permanente is a nonprofit, integrated healthcare delivery organization. These organizations are also called integrated managed care consortiums. Kaiser takes a coordinated and connected approach to care, which provides convenience and savings for its members.
By offering comprehensive medical, dental, vision, and specialty coverage in their own facilities, Kaiser is able to provide a consistent member experience across each region more easily. They also save members money by ensuring they don’t have to see providers or use pharmacies/labs that might be out-of-network. The convenience of seeing a provider, getting tests done, filling your prescriptions, and scheduling your next appointment with a different provider, all in the same building on the same day, cannot be understated.
If you value integrated care, are located in a state where Kaiser operates, and don’t want to worry about balancing multiple providers for your employees, Kaiser Permanente is the best option for you.
Kaiser Permanente Pricing
Pricing for Kaiser will vary based on your location, number of employees, and chosen coverage. They make it easy for you to get a quote in under 15 minutes online. You can get three different kinds of quotes:
All available plans quote
Select plans quote
Detailed quote (quote given for individual employees and their situations)
Kaiser Permanente Small Business Health Insurance Features
Thrive Local community partner network
Integrated care through a personal care team
Telehealth
Mobile app for medical records and communication
Kaiser Permanente Coverage Areas
Kaiser’s coverage is currently limited to California, Colorado, Georgia, Hawaii, Maryland, Oregon, Virginia, Washington, and Washington, D.C. While they have plans to continue expanding, Kaiser is at a slight disadvantage to other insurance providers because they don’t contract with other hospitals/facilities and have to build their own.
Blue365 provides discounts on products and services
Highly rated by small businesses in most regions
Cons
Poor customer satisfaction in some locations
Benefits can vary greatly
Agent must be involved in order to get a quote
BlueCross BlueShield (BCBS) has one of the largest provider networks in the country. It is accepted by over 95% of physicians and 96% of hospitals. This provider is unique in that BCBS isn't one singular entity; it is comprised of 34 independent companies operating under the BCBS name.
BCBS isn't integrated healthcare in that each provider you'll see is a BCBS provider, but it will be easy to find providers that contract with BCBS and are considered "in-network."
Why We Chose BlueCross BlueShield For Small Business Health Insurance
BCBS has a specific dedication to serving small businesses. BCBS companies provide coverage for around 7.3 million small business employees.
BCBS is America’s oldest health insurance provider (making it one of the most experienced) and is committed to providing health care coverage that’s high-quality and affordable.
If you’re looking to change insurance providers or offer health insurance for the first time, BCBS is a good option to consider. Because there are so many different providers and facilities that partner with or fall under the BCBS umbrella, there’s a good chance that your employees wouldn’t have to find a new PCP or doctor’s office.
BCBS does offer better options than Kaiser Permanente to those in need of specialty care/procedures, complex care, and management of chronic conditions through their Blue Distinction Specialty Care and Total Care plans.
If you have remote employees in different states/regions, want to work with local providers, or want to take advantage of workplace wellness plans, BCBS is the best choice for you.
BlueCross BlueShield Pricing
In order to obtain a quote from BCBS for your small business, you will have to work with an insurance agent/broker. This means you’ll be waiting longer for your quote.
BlueCross BlueShield Small Business Health Insurance Features
Workplace wellness plans
Blue365 health product discount program
Local community-based insurance companies
Telehealth through Anthem
Chronic/Specialty care management plans
BlueCross BlueShield Coverage Areas
BCBS is available in all 50 states and Washington, D.C., and even offers some international coverage, unlike the other options on our list.
The largest insurance provider in the country (and our choice for our Merchant Maverick team), UnitedHealthcare (UHC) is a great choice for business owners looking for more than just medical coverage for their employees. UnitedHealthcare includes options for part-time and seasonal employees, as well as short-term insurance plans.
Why We Chose UnitedHealthcare For Small Business Health Insurance
UHC understands the critical nature of small business health insurance both in retaining/recruiting employees and sustaining productivity/satisfaction. Their small business health insurance plans are designed to help you save money while still providing for your employees’ well-being. They focus on the simplest experience, affordable coverage, and quality supported care for their members.
UHC offers specific plans for businesses with 2-50 employees through their Small Business Store. You can obtain a quote, compare popular plans, and purchase your perfect plan through this store.
Their plans all offer or sometimes even include additional coverage for your employees, like dental, vision, behavioral health, disability, life, and even pet insurance!
If your business has part-time or seasonal employees, you want to provide your employees with other forms of insurance beyond medical or want to take advantage of workplace wellness programs, UHC could be the best choice for you!
UnitedHealthcare Pricing
Like Kaiser Permanente, UHC makes it easy for you to obtain a quote. Using their Small Business Store, you’ll be able to see what deductibles, copays, and premium amounts are most popular for businesses like yours and get a quote in under 10 minutes.
If you happen to be in a state where the Small Business Store is unavailable, UHC will still provide a quote to you; just visit its website and choose your state.
UnitedHealthcare Small Business Health Insurance Features
Benefit options for part-time and seasonal employees
Telehealth
In-app services
Bundle discounts
Vision, dental, hearing, disability and absence, pet, and life insurance benefits
UnitedHealthcare Coverage Areas
UHC is available in 49 states (excluding New York) and Washington, D.C.
Oscar's telehealth experience is far beyond most insurance providers. Alongside their easy-to-use and helpful technology, Oscar is partnered with Cigna, which gives their members access to Cigna's national and local providers. Oscar offers two network options, but both include the Cigna Behavioral Health Network and do not require specialist referrals.
Why We Chose Oscar For Small Business Health Insurance
Oscar is about more than just health insurance. They are a company that claims to be there for its members no matter the question or issue, and their 24/7 customer support backs that up.
The Oscar app allows your employees to speak to a doctor online for no cost (for most plans), refill their prescriptions, message their care team, track deductibles, and even receive rewards for meeting fitness goals. From the comfort of home and $0, members are able to talk to a provider 24/7.
Cigna + Oscar also boasts $3 prescriptions for commonly prescribed medications, a team of care guides and a nurse who can answer questions and save members money, and providers dedicated to understanding the language, race, ethnicity, and health situation of every member.
If you’re a company that values accessibility, technology, and resides in one of their limited areas of coverage, Oscar is a great choice for you and your employees.
Oscar Pricing
Cigna + Oscar small business health insurance is similar to BlueCross BlueShield in that you have to work directly with one of their agents to get a personalized quote.
Through their system of $0 virtual urgent care, $0 care teams, and no referrals, Oscar’s website claims that they can save your employees $600 on average per year, according to their 2018 data.
Oscar Small Business Health Insurance Features
24/7 customer support
$0 virtual urgent care
Access to Cigna’s network
Easy-to-use mobile app
Telehealth
Oscar Coverage Areas
Oscar has fairly limited availability at this time. Oscar is available in Georgia, Tennessee, Connecticut, some Arizona counties, some California counties, the Philadelphia metro area, Kansas City, Chicago, and St. Louis.
Because this is a newer and unconventional insurance provider, Oscar is expected to continue to expand to larger areas in the near future.
Aetna is our pick for the best self-insurance for small businesses. Opting for self-insurance for your company can save you up to 25% monthly, and the insurer returns a 50% surplus to your business. Aetna also boasts an Excellent financial strength rating, above-average member satisfaction, and $0 copays to visit MinuteClinic locations.
Why We Chose Aetna For Small Business Health Insurance
Aetna provides health insurance support specifically designed for small businesses. They offer benefits typically reserved for larger groups, like surplus sharing, lower taxes and fees, and high-cost claims protection.
As an employer, you can receive a monthly payment based on the health trends of your employees for up to 25% savings upfront. You can also access online benefits shopping, enrollment, administration, and other simple and helpful features for you and your employees.
Aetna also offers public exchange options in select states through their Small Business Health Options Program (SHOP) coverage.
Health expense funds included in their consumer-directed plans benefit both employers and employees. Employers receive tax savings from salary deductions, and employees get great care that encourages smart spending.
If you value 24/7 care at little to no cost, want to offer self-insurance to your employees, and want to offer more than just medical coverage, Aetna is a good choice for you!
Aetna Pricing
Like BlueCross BlueShield and Oscar, Aetna’s quoting process is not instant. You will be contacted by an agent with plan options that would work for your business once you complete the information request form.
Aetna Small Business Health Insurance Features
Self-insurance funding options
HSA accounts
$0 copays for MinuteClinic services
Medicare, dental, vision, supplemental, and Medicaid plans
Convenient mobile app
Telehealth
Aetna Coverage Areas
Aetna is available in all 50 states and Washington, D.C. Keep in mind that not all covered regions have MinuteClinic locations, so that benefit might not apply to your plan.
Our Methodology For Choosing The Best Health Insurance Options For Small Business
We considered more than 10 different small business health insurance providers to create this list. We rated these providers based on how easy it is to get a quote, the type of plans offered, features specifically designed to benefit small businesses, member satisfaction, and overall coverage.
We specifically looked at each provider’s personalized quote process. The best companies offer fast, easy, and accurate quotes for prospective new members and tailor their process specifically for owners of small businesses.
We also weigh unincentivized reviews from actual members. That means checking review sites like the Better Business Bureau, G2, and Consumer Reports. We consider members’ experience with these insurance providers and use that to supplement our ranking factors.
We gathered information from each company’s website and representatives to create this list. The Merchant Maverick editorial team reviews information to ensure accuracy.
What You Should Look For In A Health Insurance Provider
When deciding on a small business health insurance provider, you need to keep a few things in mind. You want to make sure that you’re getting the best balance of coverage for your employees and cost as a business owner.
The biggest things that will impact the cost of your insurance coverage are:
Medical history
Prescription drug coverage
Number of doctor visits per year
Available specialists
Specific employee medical needs
Plans for pregnancy, surgery, etc.
While it is illegal for you as an employer to ask your employees for health information, you need to ask yourself the following questions: What benefits do my employees need? How much choice am I giving them? What will their out-of-pocket costs be?
Once you receive a quote from a prospective insurance provider, you will need to evaluate it based on the following criteria:
The cost of health insurance for a small business per employee is going to depend on the insurance provider, benefits, and type of plan. The average cost for small business owners as of 2021 was $547 per employee and $1,175 for family coverage per month.
Which Small Business Health Insurance Provider Is Right For Your Business?
This answer is going to depend on all of the factors we’ve gone over today. Do you want excellent telehealth? Integrated care? Get a quote and compare prospective insurance providers to make sure you’re offering the best small business health insurance plans for your employees.
Matt has been helping small businesses make decisions since 2017. He has written reviews and articles across many different channels but specializes in the point of sale, payroll, and small business insurance categories and has been quoted in articles for Fox Business, Forbes, and other publications. Prior to joining Merchant Maverick, Matt was a journalist and editor for 14 years for a pair of weekly newspapers. He is a graduate of the University of Oregon and currently resides in Gladstone, Oregon.
View Matt Sherman's professional experience on LinkedIn.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
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