Types of Health Insurance Companies for Small Businesses
Small business owners can buy health insurance for their employees through approved insurance companies with the Small Business Health Options Program (SHOP).
Employers may choose the types of benefit design, which influences whether an employee needs referrals to see specialists, can get out-of-network care and other factors. Three types of health insurance plans offered to small businesses are:
- EPO: Exclusive provider organization plans are often an affordable option. EPOs don’t usually require members to get primary care referrals to see specialists but they also often don’t cover out-of-network care.
- HMO: Health maintenance organization plans are generally much cheaper than other options, but they also have limitations not found in other plans. That includes needing primary care referrals to see specialists and not being covered for out-of-network care.
- POS: Point of service (POS) plans may allow you to get out-of-network care, but you generally need primary care referrals to see specialists and you must choose a primary care provider. These plans aren’t as common as the other types.
- PPO: Preferred provider organization plans are often the most expensive because they offer the most flexibility. That flexibility includes members not needing to get primary care referrals to see specialists and the ability to get out-of-network care.
Getting insurance through the SHOP Marketplace allows employers to offer health plans from multiple insurance companies and qualifies them for the Small Business Health Care Tax Credit, which can help with the cost of providing coverage.
Your business must meet these requirements to qualify for the SHOP tax credit:
- Fewer than 25 full-time equivalent (FTE) employees.
- Average employee salary is about $56,000 per year or less.
- Pay at least 50% of your full-time employees’ premium costs.
- Offer SHOP coverage to all full-time employees.
Small business owners can also work with a health insurance broker who conducts all plan research and comparisons to find the best plan for your business at no additional charge. Or they can buy directly from a health insurance company.
If you buy coverage through the ACA marketplace, plans are organized by “metal” tiers: bronze, silver, gold and platinum. The tiers differ by premiums and out-of-pocket costs. For instance, bronze and silver plans have low premiums but higher deductibles and coinsurance. Gold and platinum plans have high premiums but lower out-of-pocket costs.
Employers have flexibility in which type of plans they choose to offer their employees.
In 2024, small businesses in the United States face a complex landscape when it comes to providing health insurance for their employees. With the rising costs of healthcare and the diverse needs of a modern workforce, selecting the right health insurance provider can significantly impact both the financial health of the business and the well-being of its employees. This article explores the top small business health insurance providers for 2024, highlighting their strengths, offerings, and why they stand out in the competitive market.
Understanding the Small Business Health Insurance Landscape
Small businesses, typically defined as those with fewer than 50 employees, often struggle to find affordable health insurance options that meet their needs. The Affordable Care Act (ACA) has provided some relief by offering Small Business Health Options Program (SHOP) exchanges, where businesses can compare and purchase plans. Additionally, private insurance companies continue to offer a variety of plans tailored to small business needs, from comprehensive medical coverage to specialized benefits like dental and vision care.
Criteria for Selecting the Best Providers
When evaluating the best small business health insurance providers of 2024, several key criteria were considered:
- Affordability: Cost is a significant factor for small businesses. Providers offering competitive premiums and cost-sharing options were given preference.
- Coverage Options: Comprehensive coverage that includes essential health benefits like preventive care, hospitalization, and prescription drugs was prioritized.
- Customer Service: Access to responsive customer support and user-friendly online tools for managing plans and claims.
- Provider Networks: Extensive networks of healthcare providers to ensure employees have access to quality care.
- Additional Benefits: Offerings such as wellness programs, telemedicine options, and mental health services were considered as valuable additions.
Top Small Business Health Insurance Providers of 2024
Based on the above criteria and market research, the following providers emerged as the best options for small businesses seeking health insurance coverage in 2024:
1. Blue Cross Blue Shield
Blue Cross Blue Shield (BCBS) is a nationwide network of independent health insurance companies offering a range of plans through local affiliates. Known for its extensive provider networks and comprehensive coverage options, BCBS plans are highly regarded among small businesses. They offer flexibility in plan designs and are often competitive in terms of cost and customer service.
Key Features:
- Nationwide coverage with local market expertise.
- Various plan options including HMOs, PPOs, and high-deductible health plans (HDHPs).
- Strong emphasis on preventive care and wellness programs.
- Access to telemedicine services for convenient healthcare access.
Why Choose Blue Cross Blue Shield?
BCBS combines the strength of a national brand with localized service, making it a preferred choice for small businesses looking for reliable coverage across different states.
2. UnitedHealthcare
UnitedHealthcare is another major player in the health insurance market, offering a wide array of plans tailored to small businesses. Their plans include options for businesses of all sizes, with a focus on innovation in healthcare delivery and cost management.
Key Features:
- Robust network of healthcare providers, including exclusive partnerships with leading medical institutions.
- Innovative tools for cost transparency and healthcare management.
- Extensive wellness programs and resources for employees.
- Virtual care options through their telehealth services.
Why Choose UnitedHealthcare?
UnitedHealthcare’s commitment to innovation and cost-effective healthcare solutions makes them a top choice for small businesses looking to offer comprehensive benefits to their employees.
3. Aetna (a CVS Health Company)
Aetna, now part of CVS Health, offers integrated health services alongside their insurance plans, providing a unique advantage in managing healthcare costs and improving outcomes for employees.
Key Features:
- Comprehensive health plans with options for dental, vision, and mental health coverage.
- Personalized member support and care management programs.
- Access to CVS Health resources, including MinuteClinics for convenient healthcare services.
- Tools for cost estimation and transparency in healthcare expenses.
Why Choose Aetna?
Aetna’s integration with CVS Health allows for innovative healthcare solutions and enhanced coordination of care, making it an attractive option for small businesses seeking holistic employee health benefits.
4. Cigna
Cigna offers a range of health insurance plans designed to meet the needs of small businesses, focusing on affordability and quality care. They emphasize preventive care and wellness initiatives to promote overall employee health.
Key Features:
- Global network of healthcare providers for businesses with international operations.
- Wellness incentives and programs to encourage healthy lifestyles.
- Comprehensive support for managing chronic conditions and specialty care needs.
- Digital tools for easy plan management and healthcare navigation.
Why Choose Cigna?
Cigna’s global reach and commitment to preventive care and wellness make them a strong contender for small businesses looking to provide robust health benefits to their employees.
5. Kaiser Permanente
Kaiser Permanente operates as both a health insurer and a healthcare provider, offering integrated care through their network of hospitals and medical facilities. They are known for their focus on preventive care and patient-centered healthcare delivery.
Key Features:
- Integrated healthcare model with access to Kaiser Permanente’s network of providers and hospitals.
- Emphasis on preventive care and personalized health management.
- Digital tools for managing appointments, prescriptions, and health records.
- Mental health services and wellness programs included in their plans.
Why Choose Kaiser Permanente?
Kaiser Permanente’s integrated approach to healthcare ensures seamless coordination and quality care for employees, making them a top choice for businesses seeking comprehensive health benefits.
Conclusion
Choosing the right health insurance provider is crucial for small businesses aiming to attract and retain talent while managing healthcare costs effectively. The providers listed above represent some of the best options for small businesses in 2024, offering a combination of affordability, comprehensive coverage, and innovative healthcare solutions. By evaluating each provider based on your specific business needs and employee demographics, you can make an informed decision that benefits both your company and your employees’ health and well-being in the years ahead.
