Health Insurance Options for Small Businesses Explained

Health insurance is one of the most important — and confusing — benefits small businesses offer. Understanding your options helps you make smarter decisions for both your budget and your employees.

Fully Insured vs. Level-Funded Plans

• Fully Insured Plans: Predictable monthly premiums, less risk

• Level-Funded Plans: Potential cost savings with lower claims

Each option has advantages depending on your company size and goals.

PPO, HMO, and HDHP Plans

• PPO: Flexible provider access

• HMO: Lower cost, limited networks

• HDHP: Lower premiums paired with HSAs

Employer Contributions

Employers typically cover a portion of employee premiums. Contribution strategies can help control costs while remaining competitive.

Common Mistakes Small Businesses Make

• Choosing plans based on price alone

• Not reviewing plans annually

• Poor employee communication

How a Benefits Agency Simplifies the Process

A benefits agency compares carriers, handles paperwork, and supports employees year-round.

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👉 Get a free health insurance review for your business.