Helping Small Businesses Find Better Health Insurance Options

Health insurance is one of the most valuable benefits a small business can offer—but also one of the most intimidating. Rising costs. Limited options. Complex compliance. For many small business owners, it can feel like offering health insurance is a luxury reserved for bigger companies with deeper pockets.

But it doesn’t have to be that way.

Today, small businesses have more flexibility than ever to offer competitive, affordable health benefits. With the right strategy—and a partner who knows the landscape—small businesses can find better options, control their costs, and give their teams the peace of mind they deserve.

The Health Insurance Gap for Small Employers

Let’s be blunt: small businesses are at a disadvantage when it comes to traditional health plans.

Only 39% of businesses with fewer than 200 employees offer health insurance, compared to 99% of large firms

Source: Kaiser Family Foundation, 2023 Employer Health Benefits Survey

Among small employers who don’t offer insurance, cost is the top reason—cited by 60%

Source: KFF Health Reform FAQs

The average annual premium for family coverage now exceeds $23,000, with employers paying over $17,000

Source: KFF, 2023 Survey

That kind of expense can feel impossible, especially for businesses with just a few employees.

But what if there were ways to offer meaningful coverage without jumping into a traditional group plan?

Smarter Solutions That Put You in Control

At National Benefit Plans, we help small businesses find insurance solutions that match their goals, team size, and budget. Here are a few of the most effective options:

QSEHRA (Qualified Small Employer HRA)

If you have fewer than 50 employees, QSEHRA allows you to reimburse employees tax-free for health insurance they purchase on their own.

• Set your own budget
• No group plan required
• Tax-free for both you and your employees

In 2025, you can reimburse up to $6,150 per individual or $12,450 per family

Source: PeopleKeep

ICHRA (Individual Coverage HRA)

Ideal for small and mid-sized employers, ICHRA lets you offer tax-free reimbursement for individual market plans—giving your team more freedom to choose the plan that works for them.

• No participation minimums
• Scalable with your business
• Works with part-time and remote teams

In 2024, over 500,000 individuals were covered by ICHRAs, and the number continues to rise

Source: HRA Council

SHOP Marketplace + Tax Credits

If you want a traditional group plan, the Small Business Health Options Program (SHOP) might help, especially if you qualify for the small business health care tax credit.

• Up to 50% of premiums covered via tax credit
• Available to businesses with <25 employees and average wages <$56,000

Source: IRS

Ancillary Benefits That Matter

Not ready to offer full medical coverage? Start with valuable add-ons like:

• Dental & Vision
• Accident & Critical Illness
• Short-Term Disability
• Telehealth Access

These benefits are affordable, easy to administer, and can make a big difference in employee satisfaction.

Why It Pays to Offer Benefits—Even on a Budget

Offering health benefits isn’t just a nice gesture. It’s a smart investment:

63% of job seekers say benefits are a top factor in choosing a job

Source: Glassdoor

Businesses that offer health benefits see lower turnover, higher productivity, and improved morale. In other words: you don’t have to choose between doing what’s right for your people and what’s right for your bottom line.

Let’s Find the Right Plan—Together

At National Benefit Plans, we take the guesswork out of health insurance. We’ll walk you through your options, explain what makes sense for your business, and help you build a plan that fits your budget and goals.

Whether you’re ready to offer full coverage or just want to explore what’s possible, we’re here to help.

TL;DR

• Small businesses (under 200 employees) are far less likely to offer health insurance—only 39% do so, versus 99% of large firms—mostly due to high costs. [National Benefit Plans] [1]
• Average family coverage premiums now exceed \$23,000 annually, with employers paying over \$17,000—creating a significant burden for small teams. [National Benefit Plans] [1]
• Smart alternatives to traditional group plans include:
  • QSEHRA: Reimburses employees (up to $6,150 individual / $12,450 family in 2025) tax-free for individual plans—no group policy needed. [National Benefit Plans] [1]
  • ICHRA: Enables tax-free reimbursements for individual market plans. It’s scalable, requires no participation minimums, and works for part-time or remote staff. Over 500,000 individuals were covered through ICHRAs in 2024. [National Benefit Plans] [1]
  • SHOP Marketplace + Tax Credits: Offers a traditional group plan route—with up to 50% of premiums covered—for businesses with fewer than 25 employees earning average wages under $56,000. [National Benefit Plans] [1]
• Not ready to offer full medical coverage? Consider valuable, lower-cost ancillary benefits such as:
  • Dental & vision
  • Accident & critical illness
  • Short-term disability
  • Telehealth access [National Benefit Plans] [1]
• Offering health benefits—however scaled—yields real returns: 63% of job seekers say benefits are a top factor when choosing a job, and businesses offering benefits often experience lower turnover, better productivity, and boosted morale. [National Benefit Plans] [1]
• The key takeaway: With smart structuring and the right guidance, small businesses can offer compelling health offerings without breaking the bank. [National Benefit Plans] [2]

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[1]: https://nbplans.com/helping-small-businesses-find-better-health-insurance-options/
[2]: https://nbplans.com/helping-small-businesses-find-better-health-insurance-options/