5 Best Health Insurance Plans for Small Business Owners
Offering health insurance is a smart move for small business owners. Why? Because 73% of workers consider it a key factor in job decisions, and 80% of job seekers prefer jobs with benefits over higher salaries without them. But finding the right plan can be tough, especially with small businesses paying 35% more than larger companies for coverage.
Here’s a quick breakdown of the top health insurance plans from United National Healthcare, tailored for small businesses:
Individual Health Insurance: Perfect for solo entrepreneurs. Flexible coverage but higher individual rates.
Small Business Health Plan: Ideal for companies with 2–50 employees. Offers group rate savings but limited customization.
Freelancer Coverage Plan: Designed for independent contractors. Portable coverage but higher premiums.
Pre-Existing Condition Plan: Ensures coverage for employees with chronic conditions. Guaranteed coverage but higher premiums.
Comprehensive Employee Coverage: Best for businesses with 51+ employees. Extensive benefits but the highest costs.
Quick Comparison
| Plan Type | Best For | Average Annual Cost | Key Advantage | Main Drawback |
|---|---|---|---|---|
| Individual Health Insurance | Solo entrepreneurs | $6,912 (Silver plan) | Flexible coverage | Higher individual rates |
| Small Business Health Plan | Companies with 2–50 employees | Varies by plan | Group rate savings | Limited customization |
| Freelancer Coverage Plan | Independent contractors | Varies by coverage | Portable coverage | Higher premiums |
| Pre-Existing Condition Plan | High-risk employees | Varies | Guaranteed coverage | Higher premiums |
| Comprehensive Employee Coverage | Companies with 51+ employees | Varies by plan | Extensive benefits | Highest overall cost |
Pro Tip: Start with a plan that fits your current needs and budget, and adjust as your business grows. Whether you’re a freelancer, a small team, or a larger business, there’s a plan that works for you. Keep reading to explore the details of each plan and find the best fit for your business.
Affordable Health Insurance Options for Small Businesses | Expert Advice
1.United National Healthcare Individual Health Insurance
The United National Healthcare Individual Health Insurance plan is designed to provide personal coverage with flexibility tailored to small business owners. It addresses the challenge of affordability while offering customizable options to fit various business needs. This plan serves as a practical solution for those seeking adaptable and cost-conscious healthcare coverage.
Affordability
This plan takes a direct approach to reducing financial strain. With pricing that adjusts based on factors like age, location, and coverage level, it ensures premiums align with individual circumstances and local healthcare costs [4]. This personalized approach makes healthcare more accessible and manageable for small business owners.
For self-employed individuals, the tax benefits are a major advantage. Thanks to the Affordable Care Act, 100% of health insurance premiums can be deducted, lowering adjusted gross income and reducing overall tax obligations [5]. To put this into perspective, the average small business spends $612 per employee per month on traditional group coverage, making this plan a more budget-friendly alternative [2].
Flexible Coverage Options
Flexibility is at the core of this plan, making it ideal for the ever-changing needs of small businesses. The coverage can be adjusted as your business grows or shifts, ensuring it stays relevant to your healthcare needs [4]. One standout feature is the lack of network restrictions on certain plans, allowing you to choose any doctor or hospital. This is particularly helpful for those without access to group coverage or with specific healthcare requirements [4].
The plan also covers essential medical expenses, including doctor visits, hospital stays, and prescription medications. This comprehensive approach ensures you’re protected across a wide range of healthcare scenarios [4].
Simple Enrollment and Ongoing Support
Enrolling in this plan is straightforward, thanks to the support of licensed agents who specialize in working with small business owners. These agents simplify the process by helping you choose a plan that fits your specific needs, avoiding the hurdles often associated with traditional group insurance enrollment [8].
Once enrolled, managing your coverage is hassle-free. Members can use an online portal to handle benefits, claims, billing, and communications - all in one place [8]. If you need help, customer service is just a phone call away, offering quick updates on claims, payments, and applications. This streamlined system is particularly valuable for small business owners who don’t have dedicated HR teams to navigate the complexities of insurance [7].
2. United National Healthcare Small Business Health Plan
The United National Healthcare Small Business Health Plan is crafted for companies aiming to provide solid group health coverage for their employees. It tackles the unique challenges small businesses face - offering competitive benefits while staying within budget - by presenting a variety of plan types and flexible options to cater to different workforce needs.
Affordability
Keeping costs manageable is a top priority for small businesses. On average, monthly premiums run around $612 per employee and $1,274 for family coverage [2]. United National Healthcare helps lower these expenses through smart plan designs and possible tax benefits.
Different plan types can significantly impact costs. For instance, HMO plans average $6,644 a year per employee, while POS and PPO plans fall between $6,970 and $7,729 annually [2]. EPO plans strike a balance, offering a cost-effective middle ground. Additionally, small businesses may qualify for tax credits through SHOP programs [3], which can further ease the financial burden of providing health benefits.
Here's a real-world example of how this approach works:
"Switching to the level funded plan allowed us to reduce employee premiums."
Buzz Hooper, President & Founder, Rubber & Accessories [6]
These strategies allow small businesses to offer quality benefits without breaking the bank.
Flexibility of Coverage
The plan is designed to adapt to the varied needs of small businesses and their employees. The Choice and Choice Plus plans, for example, offer different levels of network flexibility. While Choice plans require employees to stay within the network, Choice Plus plans allow for out-of-network care, albeit with reduced benefits [9].
For companies with non-traditional workforce structures, like those employing part-time, seasonal, or variable-hour workers, the United National Healthcare FlexWork plan offers a tailored solution [9]. This flexibility is a game-changer for industries with fluctuating employee schedules.
Level Funded plans add another layer of adaptability. These plans provide potential refunds when claims are lower than expected, giving small businesses the chance to better manage cash flow while still offering comprehensive coverage [10].
Employee Benefits and Options
A strong benefits package is crucial for attracting and retaining top talent. This plan addresses one of the most sought-after employee perks: comprehensive health coverage [9]. By offering standout features like $0 copays, virtual care, and guided primary care, the plan not only meets employee expectations but also boosts satisfaction and retention.
Employees can access their benefits through United National Healthcare's secure online portal and mobile app. These tools make it easy to review plan details, check claims, and explore healthcare resources. Tiered benefits encourage the use of high-quality providers, helping control costs without compromising care [9]. Additionally, Navigate and Charter plans include primary care guidance, supporting employees in making informed healthcare decisions [9].
Ease of Enrollment and Support
Managing group health insurance can be daunting, especially for small business owners without dedicated HR teams. This plan simplifies the process, making it easier to enroll and administer coverage.
Brokers play a key role in guiding businesses through plan selection and enrollment, while online tools streamline ongoing management [2]. This expert support makes navigating the complexities of group insurance less overwhelming - without adding extra costs.
The enrollment process is straightforward, with practical steps like setting a budget for health insurance, determining employee contributions, gathering quotes, and exploring tax credit opportunities [2]. This streamlined approach allows small businesses to focus on their operations while still offering quality benefits to their employees.
3. United National Healthcare Freelancer Coverage Plan
The United National Healthcare Freelancer Coverage Plan is tailored for solo entrepreneurs and independent contractors who don't have access to employer-sponsored health insurance. It recognizes the unique challenges freelancers face, offering options that are both flexible and affordable to accommodate their varying income and healthcare needs.
Affordability
Freelancers typically shoulder the full cost of health insurance premiums. On average, health coverage for freelancers in the U.S. costs around $500 per month (or $6,000 annually) [14]. United National Healthcare’s silver plan, however, averages slightly higher at $551 per month, with an annual deductible of $3,619 [15].
While costs can vary depending on location, there are ways to ease the financial burden. The Affordable Care Act provides a 100% self-employed health insurance deduction, which helps reduce overall taxable income [5]. Additionally, freelancers who qualify for tax subsidies can see their monthly premiums drop to about $200 [14].
When applying through the Health Insurance Marketplace, freelancers should carefully estimate their net self-employment income. This projected income is key to determining eligibility for subsidies and ensuring access to the best possible financial assistance [12].
By addressing cost concerns, this plan ensures freelancers can access healthcare coverage that fits their budget while meeting their needs.
Flexibility of Coverage
One of the standout features of this plan is its year-round coverage adjustments [17]. United National Healthcare designs its individual plans with freelancers in mind, offering customizable options that can adapt to changing circumstances [16].
Given the unpredictable nature of freelance work, this flexibility is crucial. Freelancers can adjust their coverage levels as their income fluctuates, ensuring their plan remains practical and affordable. Additional options like dental and vision coverage can be added as needed, allowing for a personalized benefits package [16].
The plan also provides access to United National Healthcare’s extensive provider network, which is especially useful for freelancers who may travel frequently or work remotely. Digital tools make it easy to manage coverage, ensuring that freelancers can access care wherever they are [5].
Ease of Enrollment and Support
Beyond affordability and flexibility, the enrollment process is designed to be simple and efficient. Freelancers can compare individual and family plans through the Health Insurance Marketplace to find coverage that aligns with their healthcare needs and financial situation [13]. United National Healthcare’s exchange plans offer a variety of reliable options, making the selection process more manageable [5].
The company’s digital platform streamlines everything from plan selection to enrollment and ongoing management, saving freelancers valuable time. Comprehensive support is also available to help navigate the often-complex world of individual health insurance.
Additionally, educational resources are offered to help freelancers make informed decisions, optimize their coverage, and minimize costs.
4. United National Healthcare Pre-Existing Condition Plan
Small business owners with pre-existing medical conditions often face hurdles when trying to secure health insurance. United National Healthcare's Pre-Existing Condition Plan is designed to tackle these challenges head-on, ensuring both business owners and their employees have access to fair and comprehensive coverage without fear of being penalized for their health status.
With approximately 133 million Americans living with one or more chronic illnesses like diabetes, heart disease, asthma, or cancer [19], this plan fills a critical gap. It ensures these conditions don’t lead to excessive healthcare costs or limit access to essential services. This plan complements existing individual and group coverage options by focusing specifically on the needs of those managing chronic conditions.
Affordability
This plan is backed by federal protections under the Affordable Care Act, which ensures that no insurance provider can deny coverage, charge higher premiums, or exclude essential health benefits due to pre-existing conditions [18]. This framework levels the playing field for small business owners and their teams.
Through the SHOP Marketplace, small businesses can unlock significant savings. For eligible employers, the Small Business Health Care Tax Credit can reduce premiums by up to 50% (or 35% for nonprofits) [21]. To qualify, businesses must meet specific criteria, including employing fewer than 25 full-time equivalent workers, maintaining an average salary of $56,000 or less, covering at least 50% of employee premiums, and offering SHOP coverage to full-time staff [21].
Additionally, the American Rescue Plan Act expanded eligibility for advance premium tax credits, further cutting costs. In 2023, 91% of the 15.7 million marketplace enrollees qualified for these credits, reducing their average monthly premium from $605 to just $124 [1].
Flexibility of Coverage
United National Healthcare offers flexibility to meet the diverse needs of small businesses. For example, ICHRAs (Individual Coverage Health Reimbursement Arrangements) allow employers to reimburse employees for their premiums while giving employees the freedom to select their preferred insurance plans [22].
ICHRAs also let businesses customize benefits for different employee groups, ensuring tailored support for those with chronic conditions [23]. Employers can adjust reimbursement amounts based on employee classifications, offering a personalized approach to healthcare benefits.
The plan also mirrors the tiered structure of individual market plans, with options ranging from bronze to platinum levels [21]. This allows businesses to balance premium costs with the depth of coverage, ensuring employees with ongoing medical needs get the care they require without straining the company’s budget.
Employee Benefits and Options
This plan ensures employees have access to a broad range of services, including primary care, specialty care, hospital stays, and prescriptions [20]. It’s designed to cover the full spectrum of healthcare needs.
For businesses looking for a balance between cost predictability and comprehensive coverage, level-funded plans offer a practical solution. These plans provide fixed monthly payments, helping businesses maintain steady cash flow while supporting employees with ongoing medical requirements [22].
Health Reimbursement Arrangements (HRAs) offer another flexible option. Instead of traditional group insurance, employers can reimburse employees for individual health plans that suit their specific needs [21]. This approach allows employees to choose plans that align with their personal medical situations while employers retain control over costs.
Ease of Enrollment and Support
United National Healthcare simplifies the enrollment process, making it accessible for small business owners navigating the complexities of healthcare coverage. The company provides a range of educational resources to help employers understand their options and select plans that fit their needs.
A user-friendly digital platform streamlines enrollment and ongoing plan management, ensuring employees can easily align their coverage with their healthcare needs and budgets [24]. Support doesn’t stop after enrollment - United National Healthcare continues to assist businesses throughout the coverage period, helping them adjust plans as employee needs evolve or as the business grows.
For additional guidance, consulting a tax professional can help with accurate income estimates and ensure businesses maximize their savings opportunities [11].
5. United National Healthcare Comprehensive Employee Coverage
United National Healthcare's Comprehensive Employee Coverage is crafted for businesses aiming to provide robust healthcare benefits to their workforce. This all-inclusive plan is tailored to meet the needs of small business employees, offering a wide range of healthcare services.
Affordability
The average annual cost of this plan is $8,722 per employee, with employers typically covering $7,349 and employees contributing $1,373. This structure makes high-quality healthcare coverage more accessible for smaller businesses and their staff. Notably, 30% of employees in small firms enjoy premium-free single coverage, adding another layer of affordability to the plan [2].
Small businesses can select from various plan types, each with its own cost structure. For example:
HMO plans average $6,644 annually per employee.
Point of Service plans cost around $6,970.
PPO plans are priced at approximately $7,729 [2].
Additionally, businesses can take advantage of tax credits through the Small Business Health Options Program (SHOP), helping to offset premium costs and make comprehensive coverage more financially manageable.
Flexible Coverage Options
This plan offers an array of coverage models to accommodate different business needs and employee preferences. Options include HMO, PPO, Point of Service, and EPO structures, allowing businesses to choose the network type that aligns best with their workforce. For instance, EPO plans strike a balance between offering broad benefits and managing premium costs [3].
Employers can also bundle healthcare with dental, vision, life, and disability insurance to create a more comprehensive benefits package. These customizable options allow businesses to tailor coverage to meet their unique needs while keeping costs in check.
Extensive Employee Benefits
United National Healthcare’s comprehensive plan covers a broad range of services, including primary and specialty care, hospital stays, prescriptions, preventive care, and emergency services. Employees gain access to a vast network that includes 95% of doctors and 96% of hospitals nationwide [25]. This ensures care is both accessible and reliable.
Mental health benefits are also integrated, supporting employees' overall wellness by addressing both physical and mental health needs. Prescription drug coverage is structured with tiered formularies to help control costs while ensuring essential medications remain available. Additional benefits, such as vision and dental care, round out the package, creating a well-rounded solution for employee health.
Simplified Enrollment and Ongoing Support
United National Healthcare makes enrollment straightforward for businesses with multiple employees. For companies with 2–50 employees, the Small Business Store provides an easy way to obtain quotes and purchase coverage [6].
Dedicated agents and digital tools streamline the entire process - from obtaining quotes to managing benefits. Employees can also use apps to file claims or access mental health resources, making the plan user-friendly and efficient [26]. Educational materials and ongoing support ensure businesses and employees maximize the value of their coverage.
With partnerships spanning over 1.3 million healthcare providers and 6,500 hospitals, this plan ensures employees have broad access to care. This extensive network reduces coverage gaps and maintains continuity of care, even when employees relocate or switch providers.
Pros and Cons
Once you’ve reviewed the details, understanding the pros and cons of each plan can help you decide which one aligns best with your business needs. United National Healthcare offers a range of plans, each with its own set of benefits and limitations that influence cost, flexibility, and coverage.
Individual Health Insurance is a solid choice for solo entrepreneurs or very small operations. Its standout feature is the flexibility to choose coverage levels and network options that suit your needs. The downside? You won’t benefit from group rate savings, so you’ll face higher individual market rates.
Small Business Health Plan targets companies with 2–50 employees. One of its key perks is access to group rates, which can lead to noticeable savings compared to individual plans. However, this plan offers less flexibility when it comes to tailoring specific features.
Freelancer Coverage Plan caters to independent contractors and gig workers. Its major advantage is portability - your coverage travels with you from project to project. That said, premiums tend to be higher since they reflect individual market pricing.
Pre-Existing Condition Plan is a lifeline for businesses with employees who have ongoing medical needs. It guarantees coverage regardless of health status, which can be crucial. However, this assurance often comes with higher premiums.
Comprehensive Employee Coverage is designed for companies with 51 or more employees and offers a robust benefits package. This plan is ideal for businesses looking to attract and retain top talent. The trade-off? It’s the most expensive option among the plans.
It’s worth mentioning that while United National Healthcare boasts 19% fewer complaints and an impressive member rating of 4.6, it has faced challenges with claim denials in Tennessee (25%) and Arizona (39%). On some review platforms, the company averages ratings of one to two stars [27].
Choosing the right plan often comes down to weighing cost against the level of coverage. Smaller businesses might lean toward affordability, while larger companies may prioritize comprehensive benefits to remain competitive in attracting skilled employees. Take into account your workforce demographics, budget, and future growth when making your decision.
Conclusion
In today’s competitive job market, offering solid health insurance is more than just a perk - it’s a key strategy for keeping top talent on board. Choosing the right health insurance plan for your small business doesn’t have to feel overwhelming, especially when you understand the distinct advantages each option brings to the table.
United National Healthcare offers a range of plans designed to fit businesses of all sizes. Whether you’re a solo entrepreneur, a freelancer, or managing a team, their plans provide flexible and budget-friendly coverage options. With expert support and user-friendly digital tools, United National Healthcare makes it easy to find a plan that grows alongside your business.
Their extensive provider network is another plus, giving employees access to quality care across the country.
If you're unsure where to start, consider working with a health insurance broker. Brokers can help you compare plans and customize options to suit your specific needs - all at no extra cost.
The key is finding a balance between your current budget and your future goals. Start with a plan that meets your immediate needs, and adjust as your business evolves.
FAQs
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How Small Business Owners Can Choose Affordable Health Insurance
Finding an affordable health insurance plan for your small business doesn’t have to be overwhelming. By focusing on a few important factors, you can strike the right balance between coverage and cost.
Start by assessing your business’s specific needs. Think about the size of your team and what matters most to your employees when it comes to healthcare. This step ensures you’re selecting a plan that aligns with both your budget and your team’s priorities.
Next, take a close look at the total cost of the plan. This includes not just the monthly premiums, but also deductibles and any out-of-pocket expenses your employees might face. Comparing different plan types - such as fully insured plans versus self-funded options - can reveal potential savings.
Don’t forget to explore whether your business qualifies for tax credits or incentives. These benefits can significantly lower your overall costs. Staying up-to-date on current regulations and available programs is key to keeping your plan affordable while meeting your team’s needs.
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The key distinctions between Individual Health Insurance and Freelancer Coverage Plans come down to eligibility, flexibility, and enrollment options.
Individual Health Insurance is usually obtained through the Health Insurance Marketplace. These plans cover essential health benefits and may include premium tax credits based on your income. This makes them a solid option for self-employed individuals seeking comprehensive coverage that can also be tailored to their needs.
On the other hand, Freelancer Coverage Plans are specifically designed for freelancers and solopreneurs. They offer perks like year-round enrollment and flexible cancellation policies. These plans often address unique needs, such as travel coverage or the absence of annual benefit limits, making them a great match for people with a more dynamic or unpredictable lifestyle.
When deciding between the two, consider your health requirements, budget, and lifestyle. If you need steady care or could benefit from financial help through tax credits, Individual Health Insurance might be the better choice. But if you value flexibility and specialized benefits, a Freelancer Coverage Plan could suit you better.
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Health insurance plans offer tax advantages that can make a big difference for small business owners looking to manage costs. For starters, the premiums you pay for employee health insurance are generally tax-deductible, meaning they reduce your taxable income and, by extension, your overall tax liability. On top of that, some small businesses may be eligible for the Small Business Health Care Tax Credit, which can cover as much as 50% of the premiums you pay for employee coverage.
These financial perks don’t just ease the strain on your budget - they also make it easier to offer health benefits to your employees. Providing health insurance can improve employee morale and retention, helping you build a stronger, more committed team. By leveraging these tax benefits, small business owners can strike a balance between supporting their workforce and keeping expenses under control.
