One of the decisions you have to make as a small business owner is whether you want to provide group health insurance for your employees or not. For some small businesses, having a health insurance plan is a way to get more talent to work for them, and not for their competitors. It is also done to retain and reward well performing employees for the company. A survey by the American Health Insurance Plan revealed that 56% of employees who received health insurance benefits are more likely to stay at their jobs.
As a small business owner, you are not legally bound to provide a health insurance plan for your employees, if they are less than 50. However, the need to do this may arise from wanting to retain employees, becoming eligible for the small business health care tax credit, amongst others.
Once you have concluded to go for a health insurance plan, choosing the perfect health insurance provider is key. As well, you have to consider the competitive rates of the insurance providers, their flexible coverage options, and availability. As you can see, there are a number of factors that you need to consider.
One thing to note is that you can talk the health insurance providers into making policies that would suit the needs of your employees. Insurance can be bought not only from insurance providers but also through an insurance broker or the federal government’s small business health options marketplace.
Below you will find our top list of small-business group health insurance providers that you should consider for your business.
1. Best overall: Blue Cross Blue Shield
Pros:
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- A wide provider network in the country
- PPO Saver high-deductible health plans
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Cons:
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- Plan details are limited on the website
- A sales representative is always contacted for further information
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Why we like it:
Blue Cross Blue Shield operates as an association of 36 insurance companies that provides insurance coverage in 50 states, and more, including Washington DC and Puerto Rico. BCBS works with approximately 90% of hospitals and doctors across the nation. With the BCBS BlueCard PPO program, more than 600,000 network doctors and 6,000 network hospitals are linked together in 48 states. This makes the provision of doctors an easy thing for employers anywhere in the country.
As a business owner, Blue Cross Blue Shield gives you multiple plan options for your employees. Part of the plans includes preferred provider organizations, health maintenance organizations, and high-deductible health plans.
BCBS is as old as its name. An association that has been serving its members since 1929. Several Blue Cross Blue Shield companies have received commendable ratings. On the National Committee for Quality Assurance’s website, Blue Cross Blue Shield plans were rated 3.5 on a scale of 1-5. The rating is done on many factors; such as member satisfaction and clinical quality.
Blue Cross Blue Shield boasts of the coverage of about 7 million people who are employees for small business owners. As a way of measuring member satisfaction, BCBS got the highest rank in J.D. Power’s 2021 Commercial Member Health Plan Study.
2. Best for low-cost plan options: Kaiser Permanente
Pros:
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- Traditional HMO plans
- Deductible HMO plan
- Comprehensive website information
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Cons:
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- Health service covers only California, Colorado, Georgia, Hawaii, Maryland, Oregon, Virginia, Washington, and Washington, DC
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Why we like it:
Founded in 1945, Kaiser Permanente has an aged-long history of unparalleled customer service. Its official website acts as a comprehensive hub of educational resources, making it a suitable choice for many people. One of the company’s major focuses is preventative health care service which is aimed at giving employees a healthy life.
Kaiser’s cancer screening rate is known to be far above the national average. The company’s electronic record system also sends up-to-date screening reminders to members. With a total of six plan options, Kaiser’s health insurance plan focuses on small businesses with 2-100 employees.
Kaiser’s reputation precedes them. The company boasts 12.4 million members, and a network of 23,271 doctors, and 63,306 nurses. In 2021, the company ranked best in customer service for health insurance companies on Newsweek’s Best Customer Service Companies.
3. Best for health expense funds: Aetna (CVS Health)
Pros:
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- Tax-advantaged saving options
- Large provider network
- Prime HMO plans
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Cons:
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- Limited website information
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Why we like it:
Although not available in all states, Aetna has a large network of providers. It boasts of more than 700,000 primary care doctors and over 5,700 hospitals. Aetna provides employees with tax-advantaged saving opportunities through their four health expense fund options:
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- HealthFund Health Reimbursement Arrangement
- HealthFund Health Savings Account
- HealthFund Flexible Spending Account
- Retirement Reimbursement Arrangement
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On the National Committee for Quality Assurance’s website, Aetna was rated 2.5 to 4 on a scale of 1-5. The company also earned an A rating with AM Best. Aetna provides prime HMO plans for employees. This means they get to choose an in-network primary care physician who will ensure they get the needed care at the appropriate time. This is done to achieve healthy living, which is one of Aetna’s goals.
4. Best for Customer Service: Humana
Pros:
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- Unrivaled customer service
- Large network of providers
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Cons:
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- Higher cost for flexible spending
- Smaller network
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Why we like it:
Humana started as a company in 1961. Their provision of healthcare insurance started in 1984. Ranked high by the J.D. Power study for its unrivaled customer service, Humana also earned an A rating from AM Best and was rated 2.5 to 4.0 on a scale of 1-5 by the National Committee for Quality Assurance.
The company boasts of a network of 350,000 medical providers and 3,000 hospitals. The company works with millions of medical and specialty partners throughout the country. Humana provides small and large businesses with five plans. The cost of these plans varies depending on the individual’s location.
Humana’s customer was rated best two years in a row (2019 and 2020) in Newsweek’s annual Best Customer Service report. The company also offers a community HMO plan. It is a Medicare Advantage HMO plan with a Medicare contract. Employees’ enrolment in the plan is dependent on renewal. More can be found about the plan on Humana’s official website.
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