Small business health insurance costs important investment. It helps attract and retain employees. It also ensures their safety and security. The cost of small business health insurance depends on several factors. These include the number of employees, the type of range, and the business location.
However, Employers can choose from different plans, including group health insurance and health Reimbursement Arrangements (HRAs). Premiums can be expensive, but tax benefits and subsidies can help lower costs.
Medical science is vital in creating better and more affordable health care options. For small businesses, understanding medical science helps in choosing health insurance plans that offer the right care at the right cost, keeping employees healthy and costs under control. Providing health insurance helps businesses retain employees, improve productivity, and achieve success.
What to expect for small business health insurance Costs in 2025
In 2025, small business health insurance costs are expected to focus more on affordability, ease, and improved capacity. Employers can anticipate expanded telehealth services, enhanced mental health support, and health programs to meet employee needs.
Technology will likely play a vital role, making it easier for businesses to manage plans and find benefits. Also, daily updates may impact costs and agreement requirements, making it essential for small business owners to stay informed.
Choosing a plan that balances cost-effectiveness with fulfillment to ensure employee satisfaction and business growth.
Average Marketplace Health Insurance Cost
Health insurance costs around $7,000 a year on average for an Affordable Care Act (ACA) marketplace plan, based on our research.
The cost of health insurance in the ACA marketplace at HealthCare.gov goes by the insurance company, where you live, and which plan and mental level you choose.
How many people are saved, your age, if you smoke, and your household family size and income? The ACA marketplace lets you reach health plans that are sold in the marketplace.
How Much Does Health Insurance Cost Per Month?
The premium for an ACA health insurance plan is $590 every month. The average bronze plan costs $495 every month; silver plans cost $618 every month; gold plans cost $655 every month and platinum plans cost $1,166 every month.
The averages don’t consider premium tax credits and support that can reduce costs for an ACA plan based on family income.
Most people with ACA plans don’t pay the full amount for the range thanks to premium tax credits or subsidies.
Kaiser Family Foundation estimates that 92% of those with a marketplace plan receive either a premium tax credit or cost-sharing support based on household income. How much they save depends on aspects like household income, family size, and mental level.
Average Costs of Health Insurance by Age
Though age isn’t thought when setting rates for employer-sponsored health insurance, insurers in the ACA marketplace use age when setting health plan premiums.
| Age of member | Average monthly costs |
| Age 21 | $445 |
| Age 27 | $467 |
| Age 30 | $505 |
| Age 40 | $569 |
| Age 50 | $795 |
| Age 60 | $1,208 |
Small business health insurance costs per month
Small business health insurance provides an essential medical range for employees in small companies, helping businesses attract and retain talent while ensuring workforce well-being.
These plans are designed to offer affordable healthcare solutions with an easy range of options, often including preventive care, prescription drugs, and wellness programs.
Small businesses can improve employee satisfaction, boost productivity, and meet legal requirements by investing in health insurance.
Choosing the right plan involves comparing costs, benefits, and provider networks to find the best fit for your company’s needs.
Small business health insurance costs vary wildly, but in 2023, average monthly premiums were around $703 for single coverage and $1,997 for family coverage, with costs influenced by employee number, age, and location.
Average Cost of Health Insurance by Company
It’s wise to reach quotes from many health insurance companies to find the best affordable health insurance for you.
ACA plans base rates on multiple ways, including your age, smoking status, type of plan, and mental level.
Kaiser Permanente is an insurer to check out in the ACA marketplace at HealthCare.gov if you need to pay less for range. The only disadvantage is that the company doesn’t offer plans in many states.
| Age Of Member | Aetna average monthly cost | Blue Cross Blue Shield’s average monthly cost | Kaiser Permanente’s average monthly cost | UnitedHealthcare average monthly cost |
| Age 21 | $486 | $479 | $386 | $445 |
| Age 27 | $512 | $503 | $405 | $477 |
| Age 30 | $553 | $544 | $439 | $517 |
| Age 40 | $622 | $613 | $494 | $582 |
| Age 50 | $870 | $856 | $690 | $813 |
| Age 60 | $1,321 | $1,301 | $1,049 | $1,235 |
Average Cost of Health Insurance by State
The average cost of health insurance can vary significantly depending on the state you live in. Such as local healthcare costs, state regulations, and available insurance providers influence premium rates.
Generally, states with higher living costs may have more expensive insurance plans, while others may offer more affordable options.
| State | Monthly Average |
| Alaska | $939 |
| Alabama | $544 |
| Arkansas | $513 |
| Arizona | $573 |
| Delaware | $576 |
| Florida | $702 |
| Hawaii | $528 |
| Iowa | $481 |
| Illinois | $693 |
| Indiana | $500 |
| Kansas | $634 |
| Louisiana | $623 |
| Michigan | $530 |
| Missouri | $579 |
| Mississippi | $551 |
| Mississippi | $598 |
| North Carolina | $672 |
| North Dakota | $557 |
| Nebraska | $721 |
| New Hampshire | $373 |
| Ohio | $563 |
| Oklahoma | $564 |
| Oregon | $600 |
| South Carolina | $527 |
| South Dakota | $650 |
| Tennessee | $547 |
| Texas | $558 |
| Utah | $710 |
| Wisconsin | $590 |
| West Virginia | $1,016 |
| Wyoming | $847 |
Average Cost of Health Insurance by Plan Chart
The average cost of health insurance can vary based on the type of plan you choose. Common plan types include HMO (Health Maintenance Organization), PPO (Preferred Provider Organization), EPO (Exclusive Provider Organization), and POS (Point of Service).
HMO plans are usually more affordable but require referrals for specialists. PPO plans offer more flexibility in choosing doctors but often have higher premiums.
EPO plans provide a balance of cost and flexibility, while POS plans combine features of both HMO and PPO. Understanding these differences can help you select a plan that fits your budget and healthcare needs.
| Age of member | Average monthly cost for EPO | Average monthly cost for HMO | Average monthly cost for POS | Average monthly cost for PPO |
| Age 21 | $448 | $416 | $461 | $512 |
| Age 27 | $470 | $437 | $483 | $537 |
| Age 30 | $509 | $473 | $523 | $581 |
| Age 40 | $573 | $532 | $589 | $654 |
| Age 50 | $801 | $744 | $823 | $914 |
| Age 60 | $1,217 | $1,130 | $1,251 | $1,389 |
Regular Cost of Health Insurance by Metal Tier
Health insurance plans are separated into metal tiers: Bronze, Silver, Gold, and Platinum. Each tier gives a different balance between monthly premiums and out-of-pocket costs. Bronze plans normally have the lowest premiums but higher costs when you get care.
Silver plans offer moderate premiums and out-of-pocket expenses, making them a popular choice. Gold plans have higher premiums but lower costs for services, ideal for those who need frequent medical care.
Platinum plans have the highest premiums but the lowest out-of-pocket costs, best suited for individuals with ongoing healthcare needs. Understanding these tiers helps you choose a plan that fits your budget and health needs.
| Age of member | Average monthly costs for a bronze plan | Average monthly costs for a silver plan | Average monthly costs for a gold plan | Average monthly costs for a platinum plan |
| Age 21 | $373 | $465 | $494 | $877 |
| Age 27 | $391 | $489 | $518 | $919 |
| Age 30 | $424 | $529 | $561 | $995 |
| Age 40 | $477 | $595 | $632 | $1,121 |
| Age 50 | $666 | $832 | $883 | $1,566 |
| Age 60 | $1,012 | $1,264 | $1,341 | $2,380 |
How Much Does Health Insurance Cost?
The average charge of an ACA health insurance marketplace plan is $635 a month. That average is for unsubsidized ACA plans.
Health insurance costs are based on many aspects, including the metal tier and your age. The average cost by age includes:
- A 21-year-old provides an average of $425 a month.
- A 27-year-old provides an average of $446 a month.
- The age of 27 is when the ACA stops demanding that parents keep their children on their health plans.
- A 30-year-old provides an average of $483 a month.
- A 40-year-old provides an average of $544 a month.
- A 50-year-old provides an average of $760 a month.
- A 60-year-old provides an average of $1,154 a month.
Bronze and silver projects lower, premiums but higher out-of-pocket costs than gold plans.
Bronze Plans: Average Monthly Health Insurance Costs
| Company | Age 30 | Age 40 | Age 50 | Age 60 |
| Aetna | $384 | $432 | $604 | $916 |
| Ambetter | $405 | $456 | $637 | $968 |
| Blue Cross/ Blue Shield | $421 | $474 | $663 | $1,007 |
| Cigna | $441 | $497 | $694 | $1,054 |
| Kaiser Permanente | $357 | $402 | $561 | $853 |
| Molina Healthcare | $441 | $497 | $695 | $1,056 |
| Oscar | $417 | $470 | $657 | $998 |
| UnitedHealthcare | $402 | $453 | $633 | $962 |
Silver Plans: Average Monthly Health Insurance Costs
| Company | Age 30 | Age 40 | Age 50 | Age 60 |
| Aetna | $468 | $526 | $735 | $1,115 |
| Ambetter | $470 | $529 | $739 | $1,123 |
| Blue Cross Blue Shield | $541 | $609 | $851 | $1,293 |
| Cigna | $517 | $582 | $813 | $1,235 |
| Kaiser Permanente | $461 | $519 | $726 | $1,103 |
| Molina Healthcare | $450 | $505 | $706 | $1,069 |
| Oscar | $504 | $567 | $792 | $1,204 |
| UnitedHealthcare | $519 | $585 | $817 | $1,241 |
Gold Plans: Average Monthly Health Insurance Costs
| Company | Age 30 | Age 40 | Age 50 | Age 60 |
| Aetna | $494 | $556 | $778 | $1,179 |
| Ambetter | $505 | $569 | $795 | $1,207 |
| Blue Cross Blue Shield | $588 | $662 | $925 | $1,406 |
| Cigna | $649 | $731 | $1,022 | $1,552 |
| Kaiser Permanente | $483 | $544 | $760 | $1,154 |
| Molina Healthcare | $494 | $555 | $777 | $1,176 |
| Oscar | $529 | $596 | $833 | $1,265 |
| UnitedHealthcare | $550 | $620 | $866 | $1,316 |
Platinum Plans: Average Monthly Health Insurance Costs
| Company | Age 30 | Age 40 | Age 50 | Age 60 |
| Blue Cross Blue Shield | $926 | $1,042 | $1,457 | $2,214 |
| Kaiser Permanente | $544 | $613 | $856 | $1,301 |
How to Select the Best Health Insurance for You
Choosing the best health insurance plan can feel overwhelming, but focusing on key elements can simplify the process. Start by assessing your healthcare needs, such as doctor visits, medications, and any continuing treatments.
Next, compare plan types like HMO, PPO, or EPO to find one that fits your lifestyle and budget. Pay attention to costs, including premiums, deductibles, and out-of-pocket limits.
Check if your preferred doctors and hospitals are included in the plan’s network to avoid extra expenses. Finally, review the plan’s benefits, such as preventive care, mental health support, and prescription coverage. Taking these steps will help you choose a plan that offers both value and peace of mind. Here is some information we are discussing below.
UnitedHealthcare
UnitedHealthcare provides various group health insurance options for small businesses. These plans help businesses save money while supporting the health and well-being of employees.
- Phone: 1-866-801-4409
- Website: UnitedHealthcare
Aetna
Aetna is a reputed health insurance provider in the United States. It offers various coverage options for individuals, families, and employers. Aetna has an expanded network of doctors and hospitals. Its plans include preventive care, mental health support, prescription coverage, and wellness programs. Aetna focuses on providing affordable and quality healthcare.
It also offers digital tools, telemedicine services, and personalized resources to help members manage their health. Whether you need basic coverage or full benefits, Aetna has flexible plans to suit your needs.
- Phone: 1-800-872-3862
- Website: Aetna
Humana
Humana is a top health insurance provider in the United States. It offers a variety of plans for individuals, families, and employers. Humana is known for its great customer service and large network of doctors and hospitals.
- Phone: 1-800-833-6917
- Website: Humana
Kaiser Permanente
Kaiser Permanente is the best health insurance provider in the U.S. It offers healthcare plans that have medical, dental, and vision range. Kaiser combines health insurance with healthcare services, giving members access to doctors, specialists, and hospitals.
- Phone: 1-800-464-4000
- Website: healthy.kaiserpermanente.org/front-door
How Much Does Small Business Health Insurance Cost Per Employee?
A few aspects impact what you will pay per employee for group health insurance. To calculate health insurance for your company, you need to choose the following:
Employee premium contributions
How much your employees contribute to monthly premiums impacts the overall cost of health insurance for your business. As a small business owner, you may want to contribute more than half for group health insurance as an encouragement for employee recruitment and retention.
Amount of Coverage
As a small employer, you may want to include a range specific to your industry, such as a range for risk-related injuries and illnesses to protect against medical liability. Consider the age of the employees being covered and where they are located when it comes time to reach the cost of group insurance health plans.
Tax credits
Under the Affordable Care Act, employers who have fewer than 25 full-time employees, who pay average salaries of $56,000 or less, or who cover at least half of their employees’ premiums are qualified for tax credits for their small group health insurance plans. These credits can help lower the cost of your small business health insurance.
Understanding the Cost of Employee Benefits
Each kind of Understanding the cost of employee benefits is vital for small business owners. Here’s a breakdown of typical expenses:
Health Insurance Costs
Health insurance premiums are often the most significant expense in an employee benefits package.
According to the Kaiser Family Foundation, in 2023 the average annual premium for employer-sponsored health insurance was $8,435 for single coverage and $23,968 for family range in 2023. Employers generally cover a considerable portion of these costs, with employees contributing the remainder.
Health insurance costs can vary widely based on factors like company size, the type of plan, the level of coverage provided, and where the company is located.
Employers must decide how much of the premium they will cover for employees and whether to offer extra health-related benefits like dental or vision insurance. It’s also important to consider the impact of rising healthcare costs on your business.
Retirement Plan Costs
Retirement plans can vary in cost depending on whether the employer matches employee contributions.
For example, a common employer match is 50% of employee contributions up to 6% of their salary, though employers can opt for a lower (or higher) match, or none at all. Administrative fees for handling the plan can also add to the overall cost.
The cost of supplying a retirement plan can be a valuable investment in employee retention and satisfaction, though it’s important to make sure that your company can afford to sustain the benefit over the long term.
Small business owners should carefully consider the financial importance of matching contributions before executing this benefit.
Paid Time Off Costs
The cost of PTO is more challenging to quantify, as it depends on the wages paid during the time off, the cost of any lost productivity, and whether the employer is paying overtime or engaging temporary employees when team members use their PTO.
Even so, PTO is an important benefit to provide. Offering a generous PTO plan can help you recruit top talent, improve employee morale, and reduce turnover, which can potentially help offset some of the costs.
Conclusion
The cost of health insurance for small businesses can vary depending on factors like the number of employees, location, and the type of plan chosen. While premiums can be high, offering health insurance is a valuable investment in employee well-being and satisfaction.
By comparing different plans and considering options like group plans or tax credits, small businesses can find affordable solutions that satisfy both their budget and their employees’ needs. Finally, choosing the right health insurance plan can help attract and retain top skills while keeping healthcare costs manageable.
FAQs
1. How much does health insurance cost for a small business per employee USA?
An average monthly premium of about $703 ($8,435 annually) for single coverage for every worker in small firms. An average monthly premium of $1,997 ($23,968 annually) for family coverage per covered worker in small firms.
2. What is the most basic form of business insurance?
Most businesses need general liability insurance, and your state’s laws may require workers’ compensation insurance and commercial auto insurance. But you may want other types of coverage depending on what your business does, where it operates, what kinds of assets you have, and other factors.
3. Are there any alternatives to traditional small business health insurance?
Some businesses may offer Health Reimbursement Accounts (HRAs) or Health Savings Accounts (HSAs) as alternatives. These are tax-advantaged accounts where the employer reimburses employees for qualified medical expenses. However, these are not a substitute for comprehensive health insurance.
4. What are the benefits of offering health insurance to employees?
Offering health insurance helps attract and retain employees, improves employee satisfaction, and may reduce absenteeism. It also provides peace of mind to employees, which can lead to increased productivity.
