--- title: The Best Health Insurance for Small Business description: Learn how to choose the best health insurance for small business with tips on cost, coverage and compliance. 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- - - [whatsapp://send?text=https://blog.axcethr.com/5-tips-for-choosing-the-best-health-insurance-for-your-small-business](whatsapp://send?text=https://blog.axcethr.com/5-tips-for-choosing-the-best-health-insurance-for-your-small-business) - [mailto:?subject=The%20Best%20Health%20Insurance%20for%20Small%20Business&body=https://blog.axcethr.com/5-tips-for-choosing-the-best-health-insurance-for-your-small-business](mailto:?subject=The%20Best%20Health%20Insurance%20for%20Small%20Business&body=https://blog.axcethr.com/5-tips-for-choosing-the-best-health-insurance-for-your-small-business) ![Jeanette Coleman, Director of HR at Axcet HR Solutions, discussing the best health insurance for small business.](https://blog.axcethr.com/hs-fs/hubfs/best%20health%20insurance%20for%20small%20business%202.webp?width=1200&height=800&name=best%20health%20insurance%20for%20small%20business%202.webp) Choosing the best health insurance for small business owners can be overwhelming. With so many options and factors to consider, it’s not easy to know where to start. Without a dedicated HR team, navigating the complexities of health insurance benefits—especially the annual process of evaluating and selecting the right plan—can be one of the most challenging HR tasks for small business owners. Health insurance isn't just a requirement for some businesses; it’s a crucial tool that brings multiple benefits. Before we delve into the five expert tips for choosing the best health insurance for your small business, let’s take a closer look at why offering health coverage matters. RELATED: [PEO Insurance - Unlocking Cost Savings for Your Company >>](https://blog.axcethr.com/peo-insurance) ## Why Health Insurance Matters for Small Businesses When small businesses offer health insurance, they unlock a range of benefits that extend beyond just fulfilling legal requirements. Here are a few reasons why health insurance is an essential consideration for your business: - ### A healthier workforce Employees with health insurance are more likely to maintain their health, which means fewer sick days and higher productivity. - ### Attracting and retaining talent Competitive health benefits enhance employee satisfaction and can help your company stand out to job seekers in a tight labor market. - ### Compliance as your business grows If your company has 50 or more full-time-equivalent employees, the Affordable Care Act requires you to provide health insurance, making it vital to plan ahead. **[![how to prepare your small business for annual benefits renewal](https://no-cache.hubspot.com/cta/default/2652187/b02e3a36-f8a0-44b5-94ef-285172387d2a.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/b02e3a36-f8a0-44b5-94ef-285172387d2a)** ## **5 Tips for Choosing the Best Health Insurance for Small Business Budgets** Deciding to offer health insurance to your employees is a significant step, but determining the best health insurance for your small business budget can feel overwhelming. With numerous options and considerations, it’s essential to approach this decision strategically. Fortunately, selecting the right coverage isn’t a battle you have to face alone. Here are five tips to help you choose the best health insurance for small business budgets, ensuring you provide valuable benefits while keeping costs manageable. ### 1. Consider group coverage Group health insurance is typically the most cost-effective option for small businesses. While individual health plans may cover employees and their families, group coverage often provides [more extensive benefits at a lower cost](https://blog.axcethr.com/4-ways-smaller-businesses-can-make-benefits-more-affordable). This is because the risk is spread across multiple policyholders within your company, making it a financially smart choice for both employers and employees. Depending on your budget, you can decide whether to cover the entire premium or share costs with employees. According to the [2023 Kaiser Family Foundation Health Benefits Survey](https://www.kff.org/health-costs/report/2023-employer-health-benefits-survey/), workers in small firms contributed an average of 17% for single coverage and 38% for family coverage—highlighting the flexibility small businesses have in determining contribution levels. RELATED: [Small Business Health Insurance Broker vs PEO >>](https://blog.axcethr.com/small-businesses-health-insurance-and-the-peo-option) ### 2. Don’t miss out on tax credits As a small business owner, offering the best health insurance for your small business doesn't just benefit your employees—it can also help you save money through tax credits. If your company has fewer than 25 full-time employees and you cover at least 50% of your workers' premiums, you may qualify for valuable tax credits by purchasing a plan through the Affordable Care Act's [Small Business Health Options Program (SHOP)](https://www.healthcare.gov/small-businesses/provide-shop-coverage/small-business-tax-credits/) marketplace. Each state runs its own version of the SHOP marketplace, making it an accessible option for small businesses across the country. Even if your company doesn’t qualify for SHOP-specific tax credits, you may still benefit from purchasing health insurance through the ACA’s marketplace. Premium costs might be deductible as a business expense, reducing your overall financial burden while still offering comprehensive benefits to your team. ### 3. Examine all related costs When selecting the best health insurance for small business budgets, it's crucial to look beyond the premium costs. While premiums depend on factors like the scope of coverage, whether you extend insurance to employees' families, and how much of the cost you share with your employees, other expenses should also be considered. For instance, managing health insurance each year requires time and resources. This includes researching and evaluating different plans, implementing the chosen plan and maintaining the necessary systems for ongoing administration. You may also need to invest in [HR technology](https://blog.axcethr.com/how-hr-tech-can-improve-your-business-open-enrollment-experience) to help manage your benefits program efficiently. Factoring in these additional costs ensures you’re selecting not only the best health insurance for your small business but also the most practical and sustainable option for the long term. RELATED: [Affordable Health Insurance for Small Business - Expert Tips >>](https://blog.axcethr.com/affordable-health-insurance-for-small-business) ### 4. Decide which health insurance plan fits your unique needs Choosing the best health insurance for small business requires understanding the different types of managed care plans available. Small and medium-sized businesses typically offer one of five common plan types, each with its own advantages and cost structures. These include: - Preferred provider organizations (PPOs) - Health maintenance organizations (HMOs) - Point-of-service (POS) - Exclusive provider organizations (EPOs) - High-deductible health plans (HDHPs)  The best health insurance plan for your business will depend on several factors, including: - Your budget - The demographics of your employees - The competitive benefits landscape in your industry and geographic area Consulting with an experienced employee benefits expert can help you navigate these options and choose a plan that meets both your business’s needs and your employees’ expectations. RELATED: [PEO Health Insurance - A Game Changer for Small Businesses >>](https://blog.axcethr.com/peo-health-insurance-a-game-changer-for-small-businesses) ### 5. Consider the buying power a PEO may provide For small and mid-sized businesses, accessing the best health insurance for small business can be challenging, especially when you don’t qualify for large-group plans. Smaller companies typically lack the same buying power as larger organizations, making it difficult to secure competitive rates and high-quality coverage. This is where partnering with a professional employer organization (PEO) like Axcet HR Solutions can make a big difference. A PEO pools its clients’ employees together, giving small businesses access to health insurance plans with better benefits and lower premiums—similar to those available to larger companies. By acting as the employer of record for your workforce, a PEO spreads risk across a broader group, allowing your business to tap into more affordable healthcare options. This means that, with a [PEO for health insurance](https://blog.axcethr.com/peo-for-health-insurance), your small business can offer top-tier health insurance that aligns with your budget while remaining competitive in the job market. At Axcet HR Solutions, we help small businesses access the best health insurance for their needs, offering cost-effective solutions that would otherwise be out of reach. Our comprehensive employee benefits services ensure you get the most value while simplifying your HR responsibilities. [![four ways smaller businesses can make benefits more affordable](https://no-cache.hubspot.com/cta/default/2652187/953f6b96-c125-48d8-92ed-50f401ef0650.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/953f6b96-c125-48d8-92ed-50f401ef0650) ## Axcet HR Solutions: Your Partner for the Best Small Business Health Insurance Choosing the best health insurance for small business owners takes careful planning and effort, but it’s not a challenge you need to face alone. As a [certified professional employer organization](https://www.axcethr.com/why-axcet/certified-peo/) (PEO), Axcet HR Solutions simplifies the entire process, offering you access to better coverage rates typically reserved for larger companies. We don’t just help you find the best health insurance for small business budgets—we also manage the ongoing [administration of your employee benefits program](https://www.axcethr.com/services/employee-benefits/employee-benefits-administration-and-compliance/), freeing up your time to focus on growing your business. Whether you need fassistance with evaluating your options, staying compliant with ACA requirements, or reducing overall costs, Axcet is here to guide you every step of the way. **Ready to take employee benefits and other HR tasks off your plate?** [Schedule a consultation](https://www.axcethr.com/schedule-consultation/) with our [PEO health insurance](https://www.axcethr.com/services/employee-benefits/employee-benefits-details/) and employee benefits experts today and let our team handle the details so you can focus on what matters most—running your business. [![PEO small business employee benefits](https://no-cache.hubspot.com/cta/default/2652187/db22d902-d10d-4bc1-b684-4c8856b86c66.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/db22d902-d10d-4bc1-b684-4c8856b86c66) [![Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/hs-fs/hubfs/Jeanette-04.jpg?width=80&height=80&name=Jeanette-04.jpg)](https://blog.axcethr.com/author/jeanette-coleman) Written by #### [Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/author/jeanette-coleman) Jeanette Coleman, SPHR, SHRM-SCP, is the Director of Human Resources at Axcet HR Solutions, where she has contributed her expertise for over 21 years. As a leader in the HR industry, she holds advanced certifications as a Senior Professional in Human Resources (SPHR) and SHRM-Senior Certified Professional (SHRM-SCP). Jeanette oversees HR strategy and operations, ensuring Axcet delivers exceptional HR services that help small and mid-sized businesses stay compliant and grow. With a Master’s degree in Human Resource Management from Keller Graduate School and a Bachelor of Science in Business Administration from Kansas State University, Jeanette is well-equipped to lead and support clients in navigating complex HR challenges. Throughout her 15-year tenure as Director of Human Resources, she has been instrumental in positioning Axcet as the Midwest’s largest and premier Professional Employer Organization (PEO). Her previous roles at Axcet include Director of Employee Benefits and Senior HR Consultant, where she gained extensive experience in HR outsourcing, and employee risk management. Jeanette’s expertise has been recognized through industry and regional publications. She co-authored the article “High-Touch in the Age of High-Tech: How PEOs Can Embrace AI Without Losing Their Humanity” (https://peoinsider.org/articles/high-touch-in-the-age-of-high-tech-how-peos-can-embrace-ai-without-losing-their-humanity/) for PEO Insider (March 2026), alongside Jo McClure, and was featured in Ingram’s Magazine in a Q&A (https://ingrams.com/article/qa-with-jeanette-coleman/) discussing generational change, technology, and workplace culture. These contributions reflect her perspective on balancing innovation with the human side of HR. Jeanette’s leadership reflects her deep commitment to helping businesses thrive through strategic, compliance-driven HR solutions. Through her writing, she shares insights on HR strategy, compliance, and best practices to help employers confidently manage their workforce. Published in: PEO Insider and Ingram's Read more [View all posts →](https://blog.axcethr.com/author/jeanette-coleman) ### Get HR Updates ### Table of Contents ### Related Resources - [services Small Business Health Insurance](https://www.axcethr.com/services/employee-benefits/) - [services small business health insurance program options](https://www.axcethr.com/services/employee-benefits/employee-benefits-details/) #### [Creating an Employee Handbook: Can You DIY or Should You Hire a Pro? ![](https://blog.axcethr.com/hubfs/creating-an-employee-handbook-_1_%20(1).webp)](https://blog.axcethr.com/creating-an-employee-handbook-diy-vs-professional-help) #### [![Professionals discussing how to shop for health insurance small business coverage.](https://blog.axcethr.com/hubfs/how-to-shop-for-small-business-health-insurance-_1200-x-628-px_%20(1).webp) How to Shop for Health Insurance Small Business Owners Can Trust](https://blog.axcethr.com/a-three-step-guide-to-shopping-for-small-business-health-insurance) ## Let us know what you think... ![AxcetHR Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png) - [Why Axcet](https://www.axcethr.com/why-axcet/) - [What We Stand For](https://www.axcethr.com/about-us/what-we-stand-for/) - [Expertise](https://www.axcethr.com/expertise/) - [Employee Benefits](https://www.axcethr.com/services/employee-benefits/) - [Human Resources](https://www.axcethr.com/services/human-resources/) - [Payroll Services](https://www.axcethr.com/services/payroll-and-tax-administration-services/) - [Risk Management](https://www.axcethr.com/services/workers-comp-and-employee-safety-risk-management/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Subscribe to Latest Resources](https://www.axcethr.com/subscribe-to-the-latest-resources/) - [Resource Library](https://www.axcethr.com/expertise/resource-library/) - [\[ Client Portal \]](https://www.axcethr.com/client-services/) - - - - - Search for: Copyright © 2023 Axcet HR Solutions – Kansas City's PEO Since 1988 | [Privacy Policy](https://www.axcethr.com/privacy-policy/) | [Terms and Conditions](https://www.axcethr.com/terms-conditions/) | [**Join our Team – Careers »**](https://axcethrsolutions.prismhr-hire.com/) 10975 Grandview Drive Suite 200, Corporate Woods Building 27, Overland Park, KS 66210 | Call us: 913-383-2999 *The IRS does not endorse any particular For more information on [certified professional employer organizations](https://www.axcethr.com/why-axcet/certified-peo/), go to [www.irs.gov](https://www.irs.gov).* Remove cookies ![](https://dc.ads.linkedin.com/collect/?pid=43031&fmt=gif) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Jeanette Coleman, SPHR & SHRM-SCP", "url" : "https://blog.axcethr.com/author/jeanette-coleman" }, "dateModified" : "2025-04-09T17:17:24.489Z", "datePublished" : "2024-10-02T16:00:00.000Z", "headline" : "The Best Health Insurance for Small Business", "image" : [ "https://blog.axcethr.com/hubfs/best%20health%20insurance%20for%20small%20business.webp" ], "mainEntityOfPage" : { "@id" : "https://blog.axcethr.com/5-tips-for-choosing-the-best-health-insurance-for-your-small-business", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.axcethr.com/hubfs/_logo_axcethr_primary.png" }, "name" : "Axcet HR Solutions" } } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.axcethr.com/#organization", "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "Kansas City", "addressRegion" : "MO" }, "aggregateRating" : { "@type" : "AggregateRating", "bestRating" : "5", "ratingValue" : "5", "reviewCount" : "100" }, "areaServed" : { "@type" : "Country", "name" : "United States" }, "award" : [ "IRS Certified Professional Employer Organization (CPEO)", "Award-Winning HR Solutions Provider", "SHRM Certified HR Professionals", "HRCI Certified HR Professionals" ], "contactPoint" : { "@type" : "ContactPoint", "areaServed" : "US", "availableLanguage" : "English", "contactType" : "Customer Service" }, "description" : "Award-winning Professional Employer Organization (PEO) providing comprehensive HR solutions, payroll services, employee benefits, and risk management to small and mid-sized businesses. 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With so many options and factors to consider, it’s not easy to know where to start. Without a dedicated HR team, navigating the complexities of health insurance benefits—especially the annual process of evaluating and selecting the right plan—can be one of the most challenging HR tasks for small business owners. Health insurance isn't just a requirement for some businesses; it’s a crucial tool that brings multiple benefits. Before we delve into the five expert tips for choosing the best health insurance for your small business, let’s take a closer look at why offering health coverage matters. RELATED: PEO Insurance - Unlocking Cost Savings for Your Company >> Why Health Insurance Matters for Small Businesses When small businesses offer health insurance, they unlock a range of benefits that extend beyond just fulfilling legal requirements. Here are a few reasons why health insurance is an essential consideration for your business: A healthier workforce Employees with health insurance are more likely to maintain their health, which means fewer sick days and higher productivity. Attracting and retaining talent Competitive health benefits enhance employee satisfaction and can help your company stand out to job seekers in a tight labor market. Compliance as your business grows If your company has 50 or more full-time-equivalent employees, the Affordable Care Act requires you to provide health insurance, making it vital to plan ahead. 5 Tips for Choosing the Best Health Insurance for Small Business Budgets Deciding to offer health insurance to your employees is a significant step, but determining the best health insurance for your small business budget can feel overwhelming. With numerous options and considerations, it’s essential to approach this decision strategically. Fortunately, selecting the right coverage isn’t a battle you have to face alone. Here are five tips to help you choose the best health insurance for small business budgets, ensuring you provide valuable benefits while keeping costs manageable. 1. Consider group coverage Group health insurance is typically the most cost-effective option for small businesses. While individual health plans may cover employees and their families, group coverage often provides more extensive benefits at a lower cost. This is because the risk is spread across multiple policyholders within your company, making it a financially smart choice for both employers and employees. Depending on your budget, you can decide whether to cover the entire premium or share costs with employees. According to the 2023 Kaiser Family Foundation Health Benefits Survey, workers in small firms contributed an average of 17% for single coverage and 38% for family coverage—highlighting the flexibility small businesses have in determining contribution levels. RELATED: Small Business Health Insurance Broker vs PEO >> 2. Don’t miss out on tax credits As a small business owner, offering the best health insurance for your small business doesn't just benefit your employees—it can also help you save money through tax credits. If your company has fewer than 25 full-time employees and you cover at least 50% of your workers' premiums, you may qualify for valuable tax credits by purchasing a plan through the Affordable Care Act's Small Business Health Options Program (SHOP) marketplace. Each state runs its own version of the SHOP marketplace, making it an accessible option for small businesses across the country. Even if your company doesn’t qualify for SHOP-specific tax credits, you may still benefit from purchasing health insurance through the ACA’s marketplace. Premium costs might be deductible as a business expense, reducing your overall financial burden while still offering comprehensive benefits to your team. 3. Examine all related costs When selecting the best health insurance for small business budgets, it's crucial to look beyond the premium costs. While premiums depend on factors like the scope of coverage, whether you extend insurance to employees' families, and how much of the cost you share with your employees, other expenses should also be considered. For instance, managing health insurance each year requires time and resources. This includes researching and evaluating different plans, implementing the chosen plan and maintaining the necessary systems for ongoing administration. You may also need to invest in HR technology to help manage your benefits program efficiently. Factoring in these additional costs ensures you’re selecting not only the best health insurance for your small business but also the most practical and sustainable option for the long term. RELATED: Affordable Health Insurance for Small Business - Expert Tips >> 4. Decide which health insurance plan fits your unique needs Choosing the best health insurance for small business requires understanding the different types of managed care plans available. Small and medium-sized businesses typically offer one of five common plan types, each with its own advantages and cost structures. These include: Preferred provider organizations (PPOs) Health maintenance organizations (HMOs) Point-of-service (POS) Exclusive provider organizations (EPOs) High-deductible health plans (HDHPs) The best health insurance plan for your business will depend on several factors, including: Your budget The demographics of your employees The competitive benefits landscape in your industry and geographic area Consulting with an experienced employee benefits expert can help you navigate these options and choose a plan that meets both your business’s needs and your employees’ expectations. RELATED: PEO Health Insurance - A Game Changer for Small Businesses >> 5. Consider the buying power a PEO may provide For small and mid-sized businesses, accessing the best health insurance for small business can be challenging, especially when you don’t qualify for large-group plans. Smaller companies typically lack the same buying power as larger organizations, making it difficult to secure competitive rates and high-quality coverage. This is where partnering with a professional employer organization (PEO) like Axcet HR Solutions can make a big difference. A PEO pools its clients’ employees together, giving small businesses access to health insurance plans with better benefits and lower premiums—similar to those available to larger companies. By acting as the employer of record for your workforce, a PEO spreads risk across a broader group, allowing your business to tap into more affordable healthcare options. This means that, with a PEO for health insurance, your small business can offer top-tier health insurance that aligns with your budget while remaining competitive in the job market. At Axcet HR Solutions, we help small businesses access the best health insurance for their needs, offering cost-effective solutions that would otherwise be out of reach. Our comprehensive employee benefits services ensure you get the most value while simplifying your HR responsibilities. Axcet HR Solutions: Your Partner for the Best Small Business Health Insurance Choosing the best health insurance for small business owners takes careful planning and effort, but it’s not a challenge you need to face alone. As a certified professional employer organization (PEO), Axcet HR Solutions simplifies the entire process, offering you access to better coverage rates typically reserved for larger companies. We don’t just help you find the best health insurance for small business budgets—we also manage the ongoing administration of your employee benefits program, freeing up your time to focus on growing your business. Whether you need fassistance with evaluating your options, staying compliant with ACA requirements, or reducing overall costs, Axcet is here to guide you every step of the way. Ready to take employee benefits and other HR tasks off your plate? Schedule a consultation with our PEO health insurance and employee benefits experts today and let our team handle the details so you can focus on what matters most—running your business.", "author" : { "@id" : "https://blog.axcethr.com/author/jeanette-coleman#author", "@type" : "Person", "name" : "Jeanette Coleman, SPHR & SHRM-SCP", "url" : "https://blog.axcethr.com/author/jeanette-coleman" }, "dateCreated" : "2024-10-02", "dateModified" : "2025-04-09", "datePublished" : "2024-10-02", "description" : "Choosing the best health insurance for small business owners can be overwhelming. With so many options and factors to consider, it’s not easy to know where to start. 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