Health Insurance for Small Business

Plans, costs, and quotes for companies with 3 to 50 employees. Compare Section 125 cafeteria plans from $0 per employee, WoW Health Plans from $29.99 per family per month, and traditional group insurance. Get a free quote and see costs by company size.

How much does health insurance cost for a small business?

A business with 1 to 4 employees: traditional group insurance is not available; WoW Health Plans start at $29.99 per family per month. A business with 5 to 10 employees: traditional group runs $2,000 to $6,000 per month; Section 125 starts at $0 plus FICA savings averaging $91 to $136 per employee per month. A business with 11 to 25 employees: traditional group runs $4,400 to $15,000 per month; Section 125 starts at $0. A business with 26 to 50 employees: traditional group runs $10,400 to $30,000 per month; Section 125 starts at $0. For a 20-employee business, switching from traditional group to Section 125 typically saves $34,000 to $118,000 per year.

Get a free small business health insurance quote

Submit your employee count, state, and email to receive a personalized comparison of your options within one business day. Alternatively, call 312-535-2008 or use the FICA savings calculator on this site for an instant estimate.

Why small business health insurance is so expensive

Carriers price group health insurance based on risk pool size. A small team means a small pool, which means higher per-employee premiums of $400 to $600 or more per month. Part-time workers are usually excluded. Rates go up at renewal. Section 125 cafeteria plans and WoW Health membership plans were designed to solve these problems for small employers.

Small business health insurance options, compared

Traditional Group Health Insurance

Offered through carriers like Aetna, Blue Cross, or UnitedHealthcare. Covers major medical expenses with large provider networks. Cost: $400 to $600 or more per employee per month. Part-time workers typically excluded. Rates increase at renewal. Requires at least 2 enrolled employees and 70 percent participation.

Section 125 Cafeteria Plans (5 or more employees)

IRS-approved benefit structures that let employers and employees pay for healthcare benefits with pre-tax dollars. Employer contribution starts at $0. Employees get telehealth, prescriptions, dental, and vision. FICA tax savings average $91 to $136 per enrolled employee per month. Covers all W-2 employees including part-time workers. Requires a minimum of 5 W-2 employees.

Health insurance for businesses with 1 to 4 employees

Businesses with 1, 2, 3, or 4 employees do not qualify for traditional group insurance or Section 125 plans. WoW Health Plans fill this gap with no group minimum. Basic plan: $29.99 per family per month (about $1 a day), includes 24/7 telehealth, mental health crisis support, one covered office visit per family member per year, prescription drug savings up to 80% off, diagnostic lab savings up to 60% off, and imaging savings up to 75% off. Plus plan: $54.99 per family per month, adds virtual primary care, secure specialist messaging, and generic prescription drug coverage for 93% of commonly prescribed medications. Comprehensive plan: $294.99 per family per month, adds emergency room and inpatient hospital coverage at $2,500 out-of-pocket per incident through Sedera and Zion HealthSharing.

HealthShare Programs

Community cost-sharing arrangements that cover major medical expenses. Pair with Section 125 or WoW Health to add hospital and ER coverage. Available through the WoW Health Comprehensive plan at $294.99 per family per month, or as a standalone plan from Sedera or Zion at $125 to $200 per employee per month.

How to choose the right health insurance plan for your small business

1 to 4 employees: WoW Health Plans, starting at $1 a day per family. 5 to 50 employees: Section 125 almost always saves more than it costs, with FICA savings averaging $91 to $136 per employee per month after the $35 per employee per month admin fee. Want full major medical coverage: add a HealthShare program on top of Section 125 or choose the WoW Comprehensive plan at $294.99 per family per month.

Frequently Asked Questions

Common questions about small business health insurance costs, how to get a quote, options for businesses with 3 employees or fewer than 10 employees, part-time employee coverage, tax deductibility, and how Section 125 compares to traditional group insurance are answered below.