Health Insurance Options for Very Small companies

What are the options and what is required

Health Insurance Options for Business Owners

As a business owner, you have two main options for securing health coverage:

1. Individual Health Insurance

If you're a sole proprietor or have no employees, you can purchase a personal health plan through:

✔ State of California marketplace (CoveredCA.com) – May qualify for subsidies based on income.
✔ Private insurance companies – Offers more plan options but without government subsidies.

2. Small Group Health Insurance

If you have at least one W-2 employee (other than a spouse or related family member), you may qualify for a small group plan with benefits like:

✔ More affordable rates – Group plans often cost less than individual plans.
✔ Tax advantages – Premiums may be deductible as a business expense.
✔ Attract & retain employees – Offering health benefits makes your business more competitive.

Ways to Set Up a Small Group Plan:

✔ Traditional group health insurance – Coverage from major carriers with employer/employee contributions.
✔ Small Business Health Options Program (SHOP) – Covered California Small Business marketplace plans for businesses with up to 50 employees.

✔ Health Reimbursement Arrangement (HRA) – Employers reimburse employees for individual plan premiums tax-free.

✔ Professional Employer Organization (PEO) – Outsource HR to access larger group insurance rates.

Need help finding the right plan?

📞 Call 415-524-8959 | 760-696-3573
📧 Email pamm@benefitsbydesignca.com



Benefits by Design Insurance Services – Helping business owners navigate health, dental, vision, group life and group disability options.