Our comprehensive health insurance portfolio for small businesses in California includes a diverse range of plan options, featuring extensive network coverage for groups with 2 to 100 employees. We seamlessly coordinate and connect all benefits to optimize care across various facets, effectively reducing overall costs and simplifying benefit management for your business while delivering enhanced value to your employees.
We believe every Californian deserves the opportunity to achieve optimal health. Collaborating with a variety of partners, we strive to eliminate structural barriers to care and establish a just and equitable healthcare system designed to rectify, rather than perpetuate, the disparities faced by many fellow Californians.
Small employers, typically those with 2–100 full-time employees, may qualify for the Small Business Health Options Program (SHOP) Marketplace. Established under the Affordable Care Act (ACA), SHOP provides affordable and flexible plan options. If eligibility criteria are not met or SHOP plans are unavailable, you can explore small business health insurance plans through licensed brokers or insurers serving the California region.
How Many Employees Do You Need To Offer Small Business Health Insurance?
The number of employees is just one of four requirements to qualify your business for small group health insurance. Generally, your business must:
- Have 2–100 full-time employees (excluding spouses, family members, or partners).
- Offer coverage to all full-time employees working 30 or more hours per week.
- Enroll at least 70% of employees in your insurance plan.
- Have a physical work site within the state where you purchase your plan.
What Types Of Small Business Health Insurance Plans Are Available?
As a small business owner in California, you can choose from five types of healthcare plans:
- HMO (Health Maintenance Organization): Designed to control costs by utilizing doctors and hospitals within the HMO network, with low premiums and fixed copays for doctor visits.
- PPO (Preferred Provider Organization): Allows flexibility in choosing healthcare providers without referrals, with higher monthly premiums and out-of-pocket costs.
- EPO (Exclusive Provider Organization): Offers a local network of doctors and hospitals, providing lower monthly premiums with higher deductibles.
- POS (Point of Service): Requires referrals from a primary care physician before seeing a specialist, covering out-of-network doctors at a higher cost.
- HDHP (High Deductible Health Plan): Features low premiums but higher immediate out-of-pocket costs, often paired with a Health Savings Account (HSA) for offsetting expenses.
What Is The Average Cost Of Small Business Insurance?
The cost of small business health insurance in California depends on the chosen plan type, coverage needs, and considerations of premiums, out-of-pocket costs, and provider networks.
How Can I Lower My Small Business Health Insurance Costs?
Under the Affordable Care Act, eligible employers with fewer than 25 full-time employees, paying average wages of $56,000 or less, or covering at least half of their employees’ premiums may qualify for tax credits, effectively reducing the cost of small business health insurance.
When Can I Enroll In A Small Business Health Insurance Plan?
There is no limited enrollment period for small business health insurance in California. Employers can shop for a new plan at any time of the year, with coverage usually beginning on the 1st of the following month if enrolled by the 15th of each month.