--- title: How to Compare Health Insurance Plans description: Learn how to compare health insurance plans for small businesses by evaluating coverage, costs, and types of plans to make the best decision for your team. image: https://blog.axcethr.com/hubfs/comparing-health-insurance-plans%20(1).webp --- - [Client Portal](https://www.axcethr.com/client-services/) - [Employee Login](https://www.axcethr.com/client-services/) [![AxcetHR Solutions Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png)](https://www.axcethr.com/) - [About Us](https://www.axcethr.com/about-us/) - [Corporate Philantropy](https://www.axcethr.com/about-us/corporate-philanthropy/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Values and Culture](https://www.axcethr.com/about-us/values-and-culture/) - [Kansas PEO](https://www.axcethr.com/about-us/kansas-peo/) - [Missouri PEO](https://www.axcethr.com/about-us/missouri-peo/) - [Careers](https://axcethrsolutions.prismhr-hire.com/) - 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[Human Resources](https://blog.axcethr.com/topic/human-resources) - [Payroll Administration](https://blog.axcethr.com/topic/payroll-administration) - [Employee Safety & Risk Management](https://blog.axcethr.com/topic/employee-safety-risk-management) - [Employee Benefits](https://blog.axcethr.com/topic/employee-benefits) - [All about COVID-19 in the Workplace](https://blog.axcethr.com/topic/covid19) - [Kansas & Missouri HR News](https://blog.axcethr.com/topic/kansas-and-missouri-hr-news) - [Kansas City Interest News](https://blog.axcethr.com/topic/kansas-city-interest-news) - [PEO/HRO](https://blog.axcethr.com/topic/peo) - Choose Topic: - [Human Resources](https://blog.axcethr.com/topic/human-resources) - Payroll Administrations - [Employee Safety & Risk Management](https://blog.axcethr.com/topic/employee-safety-risk-management) - [Employee Benefits](https://blog.axcethr.com/topic/employee-benefits) - [PEO](https://blog.axcethr.com/topic/peo) Play Audio How to Compare Health Insurance Plans 5:46 # How to Compare Health Insurance Plans: The Small Business Owner Guide By [Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/author/jeanette-coleman) on [Oct 02, 2024](https://blog.axcethr.com/how-to-compare-health-insurance-plans) 4 min read [2 Comments](https://blog.axcethr.com/how-to-compare-health-insurance-plans#comments-listing) Share this: - - - - [whatsapp://send?text=https://blog.axcethr.com/how-to-compare-health-insurance-plans](whatsapp://send?text=https://blog.axcethr.com/how-to-compare-health-insurance-plans) - [mailto:?subject=How%20to%20Compare%20Health%20Insurance%20Plans&body=https://blog.axcethr.com/how-to-compare-health-insurance-plans](mailto:?subject=How%20to%20Compare%20Health%20Insurance%20Plans&body=https://blog.axcethr.com/how-to-compare-health-insurance-plans) ![Business owner learning how to compare health insurance plans for small businesses by reviewing coverage options and costs.](https://blog.axcethr.com/hs-fs/hubfs/how-to-compare-health-insurance-plans%20(1).webp?width=1200&height=800&name=how-to-compare-health-insurance-plans%20(1).webp) Navigating how to compare health insurance plans can feel overwhelming, especially for small business owners juggling growth and employee needs. With limited time and expertise, many owners struggle to understand the nuances of health insurance coverage and costs. The healthcare system is notoriously complex, with various providers, brokers and consultants competing for a share of the [$3.5 trillion U.S. healthcare market](https://www.crfb.org/papers/american-health-care-health-spending-and-federal-budget). When comparing health insurance plans, it’s crucial to look beyond just monthly premiums. Group policies are structured around key terms and conditions that directly impact your business and employees. Once you’ve identified a trusted insurance partner, be sure to carefully evaluate the different types of small business health insurance plans available. Most companies opt for managed care plans, such as preferred provider organizations (PPOs), point of service (POS) plans and health maintenance organizations (HMOs). These comprehensive major medical plans offer access to a network of healthcare providers and are regulated under the federal Affordable Care Act (ACA). Once you’ve familiarized yourself with the various types of small business health insurance plans, the next step is to dig deeper into the specific coverage options available to your employees. RELATED: [Affordable Health Insurance for Small Business - The Axcet Solution >>](https://blog.axcethr.com/affordable-health-insurance-for-small-business) ## Comparing Health Insurance Plans' Coverage Types ### Evaluating coverage options when comparing health insurance plans Since the primary goal of health insurance is to cover medical expenses, the extent of coverage should be one of the first factors you evaluate. Some plans with lower premiums may come with dollar limits on benefits or lack coverage for services that ACA-qualified plans are required to provide. ### Understanding employee healthcare needs When comparing health insurance plans, it’s important to assess your employees’ typical healthcare needs. Consider how frequently they visit doctors and their general health. You can also survey employees (in a HIPAA-compliant way) to understand their satisfaction with current offerings. Even if your existing plan has worked well, newer options may allow you to offer a variety of plans tailored to different health conditions or future needs, such as maternity care. ### Weighing costs vs. benefits in health insurance plans It’s critical to weigh costs against coverage, comparing benefits, networks, prescription pricing, out-of-pocket maximums and other key factors. Generally, plans with lower premiums often come with higher deductibles, requiring employees to cover more costs upfront before insurance takes effect. Additionally, depending on the type of plan, employees may be responsible for paying either a fixed dollar amount or a percentage of the cost for medical services. ### Offering multiple health insurance plans to employees Offering a range of plans allows employees to choose the level of coverage that best suits their needs. When comparing health insurance plans, remember you don’t need to take a one-size-fits-all approach—offering multiple options can better accommodate your team’s diverse healthcare requirements. [![New call-to-action](https://no-cache.hubspot.com/cta/default/2652187/d7a14a5d-0036-4125-83e1-fadad2add27f.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/d7a14a5d-0036-4125-83e1-fadad2add27f) ## How to Compare Health Insurance Plans’ Costs ### Understanding health insurance costs for small businesses After evaluating coverage options, it’s equally important to understand how to compare health insurance plans’ costs. The cost of the health insurance plans that may best suit your business can vary depending on factors like the size of your company. For example, under the ACA, businesses with more than 50 full-time employees are required to provide health insurance. Additionally, some states mandate that employers contribute a specific portion of the monthly premiums. If businesses opt out of providing coverage, they face penalties—but for some, the penalty may be more cost-effective than offering benefits. RELATED: [Why PEOs Beat a Small Business Health Insurance Broker Hands Down >>](https://blog.axcethr.com/small-business-health-insurance-broker) ### Weighing the costs and benefits of providing health insurance Despite the potential cost, many small businesses recognize the recruiting and retention advantages of offering health insurance benefits. Even when not legally required to subsidize employee health coverage, many employers choose to contribute enough to make it affordable. If you decide to offer health insurance, consider how much of your employees’ healthcare costs your business can cover. Keep in mind that premiums on small business health insurance plans are tax-deductible, and businesses with fewer than 25 employees and payroll costs under $50,000 per employee may qualify for tax credits of up to 50% through the federal SHOP marketplace. These tax credits can make a significant difference in reducing the overall cost of health coverage. RELATED: [Small Business Health Insurance Requirements >>](https://blog.axcethr.com/should-your-small-business-offer-health-insurance) ### The Competitive Advantage of Offering Health Insurance Including health insurance in your employee benefits package not only gives your business a competitive edge, but it also reduces employee turnover and encourages a healthier workforce. Taking the time to analyze your options and make informed decisions will ultimately benefit both your business and your employees. [![Axcet HR Solutions Employee Benefits Services Web Page. Image says 'comprehensive employee benefits. attract talent, retain employees, simplify administration'](https://no-cache.hubspot.com/cta/default/2652187/interactive-184988497925.png)](https://blog.axcethr.com/hs/cta/wi/redirect?encryptedPayload=AVxigLLzNdB6pC10VTSoE%2BHVrQ4Yps5XrZsZu6zVmi6gXjCwNF3VWNhpxeDoYDv63Lkd6PCA0eLDv%2BhHEOu3z9hy4pZQkvhtEVQDbILK%2F13E1lpjwoErN3Y3PaMBYiW3QDxHP3g%2BuM2dVq4quG8WvXgglCN0nRFPvbaz4mMsjwzQapIXyH%2FKekn0aCq0DCiAJBonnIedyVL7%2BcP4hflrPxtnGcU0gWYvYKpHdelS5EYYy1fyPZa2lgw8Nj1Z1qBx9UejS9W5zPCaWeWefA%3D%3D&webInteractiveContentId=184988497925&portalId=2652187) ## Small Business Health Insurance Plans Don't Have to Be a Mystery Interested in learning how to compare health insurance plans, but unsure of where to start? A [professional employer organization (PEO)](https://www.axcethr.com/why-axcet/about-peos/) like Axcet can help. For small and mid-sized business owners, PEOs alleviate the burden of having to gather and compare health insurance information from multiple providers. When you work with a PEO, you don’t need to know *everything* about how to compare [health insurance plans](https://www.axcethr.com/services/employee-benefits/)–you can lean on the experts. [Schedule a consultation](https://www.axcethr.com/schedule-consultation/) today. [![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/) #### [How to Shop for Health Insurance Small Business Owners Can Trust ![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)](https://blog.axcethr.com/a-three-step-guide-to-shopping-for-small-business-health-insurance) #### [![Sam Hihn, Axcet safety and health consultant, discusses MVR checks for employers](https://blog.axcethr.com/hubfs/pre-employment-driving-record-check%20(1).webp) MVR Checks for Employers: A Key to Reducing Accidents and Liability](https://blog.axcethr.com/mvr-checks-for-employers-a-key-to-hiring-safe-drivers) ## 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" : "2025-04-28T20:03:25.811Z", "datePublished" : "2024-10-02T12:00:00.000Z", "headline" : "How to Compare Health Insurance Plans", "image" : [ "https://blog.axcethr.com/hubfs/comparing-health-insurance-plans%20(1).webp" ], "mainEntityOfPage" : { "@id" : "https://blog.axcethr.com/how-to-compare-health-insurance-plans", "@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 limited time and expertise, many owners struggle to understand the nuances of health insurance coverage and costs. The healthcare system is notoriously complex, with various providers, brokers and consultants competing for a share of the $3.5 trillion U.S. healthcare market. When comparing health insurance plans, it’s crucial to look beyond just monthly premiums. Group policies are structured around key terms and conditions that directly impact your business and employees. Once you’ve identified a trusted insurance partner, be sure to carefully evaluate the different types of small business health insurance plans available. Most companies opt for managed care plans, such as preferred provider organizations (PPOs), point of service (POS) plans and health maintenance organizations (HMOs). These comprehensive major medical plans offer access to a network of healthcare providers and are regulated under the federal Affordable Care Act (ACA). Once you’ve familiarized yourself with the various types of small business health insurance plans, the next step is to dig deeper into the specific coverage options available to your employees. RELATED: Affordable Health Insurance for Small Business - The Axcet Solution >> Comparing Health Insurance Plans' Coverage Types Evaluating coverage options when comparing health insurance plans Since the primary goal of health insurance is to cover medical expenses, the extent of coverage should be one of the first factors you evaluate. Some plans with lower premiums may come with dollar limits on benefits or lack coverage for services that ACA-qualified plans are required to provide. Understanding employee healthcare needs When comparing health insurance plans, it’s important to assess your employees’ typical healthcare needs. Consider how frequently they visit doctors and their general health. You can also survey employees (in a HIPAA-compliant way) to understand their satisfaction with current offerings. Even if your existing plan has worked well, newer options may allow you to offer a variety of plans tailored to different health conditions or future needs, such as maternity care. Weighing costs vs. benefits in health insurance plans It’s critical to weigh costs against coverage, comparing benefits, networks, prescription pricing, out-of-pocket maximums and other key factors. Generally, plans with lower premiums often come with higher deductibles, requiring employees to cover more costs upfront before insurance takes effect. Additionally, depending on the type of plan, employees may be responsible for paying either a fixed dollar amount or a percentage of the cost for medical services. Offering multiple health insurance plans to employees Offering a range of plans allows employees to choose the level of coverage that best suits their needs. When comparing health insurance plans, remember you don’t need to take a one-size-fits-all approach—offering multiple options can better accommodate your team’s diverse healthcare requirements. How to Compare Health Insurance Plans’ Costs Understanding health insurance costs for small businesses After evaluating coverage options, it’s equally important to understand how to compare health insurance plans’ costs. The cost of the health insurance plans that may best suit your business can vary depending on factors like the size of your company. For example, under the ACA, businesses with more than 50 full-time employees are required to provide health insurance. Additionally, some states mandate that employers contribute a specific portion of the monthly premiums. If businesses opt out of providing coverage, they face penalties—but for some, the penalty may be more cost-effective than offering benefits. RELATED: Why PEOs Beat a Small Business Health Insurance Broker Hands Down >> Weighing the costs and benefits of providing health insurance Despite the potential cost, many small businesses recognize the recruiting and retention advantages of offering health insurance benefits. Even when not legally required to subsidize employee health coverage, many employers choose to contribute enough to make it affordable. If you decide to offer health insurance, consider how much of your employees’ healthcare costs your business can cover. Keep in mind that premiums on small business health insurance plans are tax-deductible, and businesses with fewer than 25 employees and payroll costs under $50,000 per employee may qualify for tax credits of up to 50% through the federal SHOP marketplace. These tax credits can make a significant difference in reducing the overall cost of health coverage. RELATED: Small Business Health Insurance Requirements >> The Competitive Advantage of Offering Health Insurance Including health insurance in your employee benefits package not only gives your business a competitive edge, but it also reduces employee turnover and encourages a healthier workforce. Taking the time to analyze your options and make informed decisions will ultimately benefit both your business and your employees. Small Business Health Insurance Plans Don't Have to Be a Mystery Interested in learning how to compare health insurance plans, but unsure of where to start? A professional employer organization (PEO) like Axcet can help. For small and mid-sized business owners, PEOs alleviate the burden of having to gather and compare health insurance information from multiple providers. When you work with a PEO, you don’t need to know everything about how to compare health insurance plans–you can lean on the experts. Schedule a consultation today.", "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" : "2025-04-28", "datePublished" : "2024-10-02", "description" : "Navigating how to compare health insurance plans can feel overwhelming, especially for small business owners juggling growth and employee needs. With limited time and expertise, many owners struggle to understand the nuances of health insurance coverage and costs. 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