You’ve probably heard that health insurance is one of the biggest expenses for a small business, and that’s not an exaggeration.
But have you ever sat down and tried to untangle what the actual small business health insurance cost looks like for your team? It can feel like trying to read a contract written in another language while the clock’s ticking.
Here’s the good news: the cost isn’t a mystery you have to accept as fate. With the right plan, you can keep premiums affordable, give your employees solid coverage, and even snag tax advantages that shrink the bill.
Think about the last time you shopped for office supplies. You compared prices, checked reviews, maybe even asked a colleague for a recommendation. The same approach works for health insurance—only the stakes are higher because you’re protecting people’s health and your bottom line.
In the next few minutes we’ll break down the three biggest levers that drive small business health insurance cost: the size of your workforce, the type of plan you choose, and the level of contribution you decide to make. You’ll see real‑world examples, like a boutique marketing firm of eight employees that slashed its monthly premium by 15% by switching from a high‑deductible plan to a carefully balanced PPO.
We’ll also share a quick checklist you can use today to start estimating your own costs, so you won’t have to wait for a quote that arrives weeks later.
Sound doable? I promise it won’t be a maze of jargon. Let’s dive in and demystify small business health insurance cost together.
Before you start, grab a pen or open a spreadsheet. Jot down how many staff members you have, their typical health needs, and the budget you’re comfortable allocating each month regularly.
TL;DR
We break down the three key levers—workforce size, plan type, and contribution level—that determine small business health insurance cost, and show how a boutique firm cut premiums by 15% with a smarter PPO choice.
Grab our quick checklist, plug in your employee count and budget, and you’ll see instantly where you can save without sacrificing coverage.
Understanding Small Business Health Insurance Cost
When you first look at a quote, the numbers can feel like a punch in the gut – “$12,000 a year for a team of ten?” you might think, and wonder if there’s any way to make sense of it.
Here’s the thing: the small business health insurance cost isn’t some random figure. It’s the sum of a handful of levers that you can actually see, measure, and adjust.
What’s really driving the price?
First, the baseline premium is set by the insurer’s cost projections. For 2026, the median proposed increase across 318 small‑group insurers was 11%, with many pointing to rising medical trend costs – roughly a 9% climb in hospital, physician and drug expenses according to the Health System Tracker analysis. Add in higher prescription drug prices, especially specialty meds like GLP‑1s, and you’ve got a recipe for higher bills.
Second, your workforce size matters. Insurers spread risk across the pool, so a group of five with a few high‑cost claimants looks a lot riskier than a group of 30 with relatively low utilization. That’s why many states require at least 70% employee participation – without enough healthy members, the per‑person cost spikes.
Third, the plan design you choose (PPO, HMO, high‑deductible, etc.) changes the premium. A more generous network or lower deductible usually means a higher monthly payment, but it can also lower out‑of‑pocket costs for your staff.
Finally, the contribution level you set – how much of the premium you cover versus what employees pay – directly affects the headline number you see on the quote.
What does “average” look like?
In 2024, the average group health premium for a single employee was about $8,951 per year, roughly $746 a month, while family coverage averaged $25,572 annually according to PeopleKeep’s recent blog post. Those figures rose about 7% over the prior year, so you can expect a similar upward trend unless you take steps to control cost.
But don’t let those big‑picture numbers scare you. Most of the increase comes from the three levers we just outlined, and each one offers a point of action.
How to size your budget – a quick walkthrough
- Start with employee count. Plug your headcount into a spreadsheet and multiply by the average single‑employee premium ($746). That gives a rough baseline.
- Choose a plan type that matches your risk profile. If most of your team is young and healthy, a high‑deductible health plan (HDHP) paired with an HRA can shave 10‑15% off the premium.
- Set a contribution strategy. Many small firms cover 70% of the premium and let employees pick up the rest. Adjusting that split up or down changes your total cost line‑item.
- Factor in administrative time. As PeopleKeep notes, managing a group plan can eat up roughly 88 hours a year in a small office. Those hours have a dollar value, so consider whether an HRA or a level‑funded self‑insured option might free up staff time.
And remember, you’re not locked into one plan forever. During renewal season, compare at least three carriers, look at the medical trend assumptions they use, and ask for a breakdown of how much of the premium is driven by drug costs versus hospital services.
Does any of this feel overwhelming? Absolutely. That’s why many owners lean on a knowledgeable broker who can translate the jargon and pull the right data for your specific situation.
Now, let’s bring it all together with a visual snapshot of how the levers interact.
Ready to see the numbers for your own company? Grab a pen, pull up the calculator, and walk through the steps above. You’ll be surprised how much you can influence the final figure.
And if you want a quick walkthrough of the whole process, check out this short video:
Bottom line: small business health insurance cost is a moving target, but it’s not a mystery you have to accept. By understanding the underlying drivers and taking a few deliberate actions, you can keep premiums in check while still offering a benefit that matters to your team.
Group vs Individual Plans: Cost Comparison
When you start weighing a group policy against buying individual coverage for each employee, the math can feel like a maze. You’re not just looking at the premium sticker; you’re juggling taxes, admin time, and the risk that one high‑cost claim can throw the whole budget off balance.
Let’s break it down with the three lenses most owners use: total premium outlay, out‑of‑pocket exposure for staff, and the hidden administrative cost.
Premiums on paper vs. premiums in practice
A typical group plan for a ten‑person team might sit around $9,000 a year, while the same ten people buying individual plans on the Marketplace could see a combined cost of $11,500 or more. The difference comes from the insurer’s ability to spread risk across a larger pool.
But here’s the catch: if your workforce is under 20 and most are relatively healthy, a high‑deductible health plan (HDHP) with an HRA can shave 10‑15% off that group premium. The HRA lets you reimburse employees for qualified expenses tax‑free, which the HealthCare.gov guide on HRAs explains. That tax credit can feel like a hidden discount.
Out‑of‑pocket exposure
Individual plans often have lower deductibles because the insurer is pricing each person’s risk separately. In a group plan, you might accept a higher deductible in exchange for a lower monthly cost. For example, a boutique design studio of eight switched from a low‑deductible PPO to a $1,500 deductible HDHP and saw employee out‑of‑pocket costs rise by $200 annually, but the employer’s premium dropped $1,200.
Real‑world tip: run a quick spreadsheet that multiplies the average deductible by the expected utilization rate (usually 1‑2 claims per employee per year). If the extra employee cost is less than the premium savings, the group HDHP wins.
Administrative overhead
Group plans aren’t free to manage. You’ll spend time on enrollment, compliance reporting, and answering employee questions. The HealthCare.gov small‑business overview notes that many owners allocate roughly 80‑90 hours a year to admin tasks. That’s roughly $2,000 in labor if you value your time at $25/hour.
Individual plans shift most of that burden to the employee—they log in, choose a plan, and the marketplace handles the paperwork. The trade‑off is higher payroll taxes for the employer if you subsidize those premiums.
Decision‑making checklist
| Factor | Group Plan | Individual Plans |
|---|---|---|
| Monthly premium (10‑employee example) | $9,000 | $11,500 |
| Typical deductible | $1,500–$2,000 (HDHP) | $500–$750 (PPO) |
| Admin time (annual) | ≈80 hrs | ≈20 hrs (employee‑managed) |
Use this table as a quick reference when you sit down with your broker. Ask for a side‑by‑side quote, then plug the numbers into the checklist.
Action steps you can take today
- Gather last year’s claims data (if you have any) and calculate the average cost per claim.
- Log into the group health insurance guide on our site to see sample HDHP vs. PPO scenarios.
- Run a simple cost model: (group premium + admin labor) vs. (sum of individual premiums + employer subsidy).
- Ask your broker about an HRA or a Qualified Small Employer HRA (QSEHRA) as a bridge if you’re leaning toward individual plans but still want some employer contribution.
- Schedule a 15‑minute call with Life Care Benefit Services to review the numbers and explore any state‑specific subsidies.
And remember, the cheapest option on paper isn’t always the best for morale. Employees who feel their coverage is generous are more likely to stay, which in turn lowers turnover costs—a hidden savings you can’t ignore.
Speaking of hidden costs, many small firms overlook ancillary expenses like transportation for wellness events. For a quirky example, a company in Madrid saved on shuttle fees by partnering with a Corporate Event Bus Rental in Madrid for its annual health fair. It’s a reminder that every line item, even the unexpected ones, adds up.
Bottom line: compare the total cost of ownership—not just the headline premium. When you factor in taxes, admin time, and employee satisfaction, the picture becomes a lot clearer.
Leveraging Life Insurance with Living Benefits to Offset Health Costs
What are living benefits?
Imagine your life‑insurance policy suddenly became a safety‑net you can tap while you’re still alive. That’s what living benefits do – they let you borrow against, or receive a cash‑value payout from, a policy when you face a qualifying medical event, like a serious illness or a costly injury.
Because the money is tax‑free and doesn’t have to go through a traditional health‑claim process, it can act like a mini‑health‑reimbursement plan without the paperwork.
How they can lower your small business health insurance cost
Here’s the trick most owners miss: the cash you pull from a living‑benefit rider can be used to cover deductibles, co‑pays, or even a portion of the premium you’d otherwise pay for a group plan. When you offset those out‑of‑pocket expenses, the effective “small business health insurance cost” drops, even though the headline premium stays the same.
Think about it this way – you’re not cutting the health‑plan, you’re supplementing it with a resource that’s already in your pocket.
Real‑world example
Take a boutique consulting firm with five employees. The group HDHP they chose costs $6,800 a year in premiums, and the average employee deductible is $1,500. One of the partners gets diagnosed with a condition that qualifies for a living‑benefit payout. The policy’s rider releases $10,000 cash, which the partner uses to cover his deductible, a few months of medication, and even a one‑time health‑coach session.
Because the partner’s out‑of‑pocket burden disappears, the company doesn’t feel the need to increase its contribution level. In effect, the “cost” of health coverage for the team shrinks by roughly $2,500 – the amount the partner would have otherwise asked the business to subsidize.
Three‑step checklist to put living benefits to work
- Identify the right policy type. Indexed universal life (IUL) or a whole‑life policy with an accelerated‑death‑benefit rider are the most common choices for small businesses.
- Map qualifying events to your biggest health expenses. Look at your recent claims data – high deductibles, specialty drug costs, or frequent specialist visits are prime candidates for a living‑benefit cash infusion.
- Set a reimbursement workflow. Decide whether the cash will go straight to the employee, into a Health Reimbursement Arrangement (HRA), or be used to reimburse the company’s premium bill each month.
Once you’ve nailed those steps, you’ll have a built‑in buffer that makes the headline premium feel a lot lighter.
Tax advantages you can’t ignore
The IRS treats qualified living‑benefit payouts as a tax‑free return of premium, meaning you don’t add it to your taxable income. That’s a double win – you lower your taxable payroll and you give employees a tangible health‑cost relief.
And if you pair the policy with an HRA, the reimbursement amount is also tax‑free for the employee, further stretching every dollar.
Why it matters for your bottom line
When you calculate “small business health insurance cost,” most owners only count premiums and admin time. Adding a living‑benefit strategy lets you subtract a chunk of out‑of‑pocket expenses, effectively reducing the total cost of ownership.
According to NerdWallet, many small‑business owners use life insurance not just for personal protection but also as a financial tool to keep the business afloat during unexpected health events.
Take the next step today
If you’re curious whether a living‑benefit rider makes sense for your team, schedule a quick 15‑minute call with Life Care Benefit Services. We’ll walk through your current health‑costs, match you with a policy that fits, and show you exactly how the numbers shift.
Bottom line: you don’t have to choose between affordable health coverage and protecting your cash flow. A well‑structured life‑insurance policy with living benefits can be the bridge that turns a hefty health‑insurance bill into a manageable, even predictable, expense.
Integrating Mortgage Protection and Retirement Planning
When you’re juggling payroll, health premiums, and a mortgage, it can feel like you’re juggling fire. One misstep and the whole house shakes. That’s why many small‑business owners start looking at mortgage protection and retirement planning as a single, coordinated strategy.
Why combine them?
Mortgage protection is essentially a life‑insurance policy that pays off your loan if you can’t work. At the same time, a solid retirement plan—whether it’s an IUL, a 401(k), or a simplified employee retirement arrangement—grows cash value that can be tapped for unexpected expenses.
When you line those two up, the cash‑value can serve two masters: it can act as a safety net for your home and as a supplemental source to cover “small business health insurance cost” spikes. In fact, a JPMorgan Chase study shows health insurance premiums have risen to about 4% of operating expenses for non‑employer firms, meaning every dollar you can pull from a retirement‑linked policy eases that burden.
Real‑world example #1: The tech startup
Imagine a five‑person SaaS startup in Austin. The founder has a $250,000 mortgage, a group HDHP that costs $7,200 per year, and an IUL policy with a $30,000 cash value. When a key developer faces a serious illness, the living‑benefit rider releases $12,000. The team decides to funnel $8,000 toward the developer’s medical deductible and the remaining $4,000 toward the mortgage’s principal.
Result? The company’s health‑insurance cost doesn’t balloon because the out‑of‑pocket expense is already covered. Meanwhile, the mortgage balance drops faster, freeing up equity that can later be rolled into a retirement‑savings match.
Real‑world example #2: The family‑run bakery
A mom‑and‑dad bakery employs three part‑time staff. Their mortgage is $180,000, and they’ve set up a SIMPLE IRA that automatically contributes 4% of payroll. The owner also purchases a mortgage‑protection term policy that mirrors the remaining loan balance.
During a slow season, sales dip and the health‑insurance premium nudges up by $1,500. Because the term policy’s death benefit is earmarked for the mortgage, they can safely redirect $1,000 of the IRA match to cover the premium increase, keeping cash flow steady while still chipping away at the loan.
Actionable checklist: Blend mortgage protection with retirement planning
- Assess your mortgage balance and timeline. Write down the current principal, interest rate, and years left.
- Choose a life‑insurance product that offers a living‑benefit rider. Indexed universal life (IUL) or whole‑life policies are common choices for small businesses.
- Calculate the cash‑value you need to cover a typical health‑insurance premium spike. Use last year’s premium as a baseline and add a 10% cushion.
- Set up a retirement account that allows “in‑service” withdrawals or loans. A 401(k) with a loan feature or an IUL can supply the cash without penalties.
- Map out a payment flow. When a medical claim triggers the rider, first pay the deductible, then allocate any surplus to the mortgage or retirement fund, whichever aligns with your long‑term goal.
- Review annually. As your mortgage shrinks and your retirement balance grows, adjust the death benefit and contribution rates to keep everything in sync.
Does this feel like a lot to manage? Not really. Most of the heavy lifting is done when you set up the policies. After that, it’s just a quarterly glance at two numbers: your mortgage balance and your retirement cash value.
Tips from the field
– If you qualify for the SBA’s Paycheck Protection Program loan forgiveness, you can use a portion of the forgiven amount to fund a mortgage‑protection policy—just keep the documentation straight according to SBA guidance.
– Keep the policy beneficiary list simple: name the business as primary, with the owners as secondary. That way the cash‑value stays inside the company’s financial ecosystem.
– Remember to communicate the plan to your team. When employees see that a portion of the retirement match can indirectly protect the business’s stability, morale improves, and turnover drops—another hidden way to lower your health‑insurance cost.
In short, weaving mortgage protection into your retirement roadmap creates a financial safety net that does double duty. It shields your home, cushions health‑insurance spikes, and accelerates your path to a comfortable retirement.
Top Strategies to Reduce Your Small Business Health Insurance Premiums
Okay, you’ve seen how the levers work – now let’s roll up our sleeves and actually shave dollars off that small business health insurance cost. Below are the tactics that most owners swear by, plus concrete examples so you can picture the savings in your own balance sheet.
1. Leverage the Small Business Health Care Tax Credit
If you have fewer than 25 full‑time equivalents and pay at least 50 % of your employees’ premiums, you may qualify for a federal tax credit of up to 50 % of the employer’s contribution. That credit alone can knock a few hundred dollars off each month. Learn more about the small business tax credit and see if you meet the thresholds.
Real‑world example: a boutique graphic studio with 12 staff members was paying $9,800 in annual premiums. After claiming the credit, their net cost dropped to $7,300 – a 25 % reduction without changing the plan.
2. Re‑evaluate Plan Design – Move to a High‑Deductible Health Plan (HDHP) with an HRA
High‑deductible plans look scary at first, but pair them with a Health Reimbursement Arrangement (HRA) and you get lower premiums plus tax‑free reimbursements for qualified expenses. The math works like this: the premium might fall 12 %–15 %, and the HRA lets you reimburse employees up to $5,000 per year without payroll taxes.
Case in point: a family‑run bakery switched from a low‑deductible PPO ($1,200 per employee annually) to an HDHP ($950 per employee). They set up a $3,000 HRA per employee. Their total out‑of‑pocket cost rose by $150 per person, but the employer saved $2,500 in premiums – a net win.
3. Trim Administrative Overhead with a Broker Who Does the Heavy Lifting
Many small owners think they can DIY the enrollment, but every hour you spend on paperwork is money you could invest elsewhere. A knowledgeable broker can negotiate carrier rates, bundle services, and automate enrollment, often cutting admin time by 30 %‑40 %.
Take a tech startup that spent roughly 90 hours a year on admin tasks. After hiring a broker, they shaved that down to 55 hours and saved about $650 in labor costs (based on a $25/hour rate). Those savings can be redirected into premium contributions or employee perks.
4. Encourage Employee Participation to Strengthen the Risk Pool
Most states require at least 70 % employee participation, but hitting 90 % or higher can dramatically lower per‑person premiums because the risk pool is healthier. Communicate the benefit clearly: “If you enroll, the whole team pays less.”
For example, a marketing agency of 18 people ran a simple “enroll and save” campaign, boosting participation from 68 % to 92 %. The insurer lowered the group premium by 8 %, translating to a $1,200 annual saving for the business.
5. Use Tiered Contribution Levels to Align Costs with Employee Needs
Not every employee needs the same level of coverage. Offer a baseline plan that the business fully funds and optional add‑ons (like dental or vision) that employees can purchase at cost. This way you control the core premium while still giving flexibility.
One small consulting firm introduced a core HDHP (fully funded) and optional “enhanced” riders for $30 a month each. Only 20 % of staff opted in, adding $720 in extra revenue that helped fund a wellness program without raising the base premium.
Action Checklist – Reduce Your Premiums Today
- Confirm you meet the eligibility for the federal tax credit and run the calculation.
- Ask your broker for HDHP quotes with HRA options and compare the total cost of ownership.
- Audit your current admin process; estimate hours spent and explore broker services that can automate enrollment.
- Launch an internal communication push to boost employee enrollment to at least 90 %.
- Design a tiered contribution model and pilot it with a small group before rolling out company‑wide.
- Review the results after six months and adjust plan design, HRA amounts, or contribution splits as needed.
By tackling these levers one at a time, you’ll see the small business health insurance cost shrink in a way that feels sustainable, not like a one‑off hack. Ready to take the next step? Give Life Care Benefit Services a call today, and we’ll walk you through the exact numbers for your business.
Common Mistakes When Estimating Small Business Health Insurance Cost
Ever stared at a quote and felt like you were reading a foreign language? That moment of confusion is the perfect breeding ground for estimation errors, and most small‑business owners fall into the same traps.
Mistake #1: Relying on a Single Quote Without Context
It’s tempting to take the first number you see and run with it. The problem? Premiums can swing wildly based on plan design, employee participation, and even the time of year you ask.
What you really need is a baseline – a quick spreadsheet that multiplies your headcount by the average single‑employee premium (around $746 per month in 2024) and then adjusts for deductible level, HRA contributions, and admin costs. Skipping that step often leads to over‑budgeting by 10‑20 %.
Mistake #2: Ignoring Employee Participation Rates
Most states require about 70 % enrollment, but many owners assume “good enough” at 60 %. When participation drifts low, the risk pool shrinks and per‑person premiums spike.
One small consulting firm discovered that a modest internal campaign nudging enrollment from 68 % to 91 % shaved $1,200 off their annual cost. The math is simple: higher participation spreads risk, which drives the insurer’s price down.
Mistake #3: Overlooking Administrative Overhead
We all love the idea of “DIY enrollment,” but the hidden labor cost adds up fast. The average small business spends roughly 80‑90 hours a year on enrollment, eligibility tracking, and compliance reporting according to Insureon’s cost analysis. At $25 per hour, that’s over $2,000 you could be allocating toward better coverage instead.
Hiring a broker who automates enrollment can cut that time by a third, turning a hidden expense into a real savings opportunity.
Mistake #4: Forgetting to Factor in Plan Design Trade‑offs
Choosing a low‑deductible PPO because “it feels safer” often means a premium that dwarfs the actual out‑of‑pocket savings. A high‑deductible health plan (HDHP) paired with a Health Reimbursement Arrangement (HRA) can lower the premium by 12‑15 % while still protecting employees.
Just ask the bakery that switched from a $1,200‑per‑employee PPO to a $950 HDHP with a $3,000 HRA. Their total out‑of‑pocket rose by $150 per person, but the employer saved $2,500 in premiums – a net win.
Mistake #5: Not Reviewing Policy Exclusions and Limits
Exclusions are the fine print that can turn a “covered” claim into an out‑of‑pocket surprise. Many owners assume their plan covers everything, only to discover that specialty drugs or certain mental‑health services are left out.
Grand River Insurance reminds us that under‑insuring or over‑insuring assets can both be costly mistakes as they explain in their common‑mistakes guide. A quick audit of exclusions each renewal cycle keeps you from paying for coverage you don’t need—or worse, being caught without it.
Quick Checklist to Avoid Estimation Errors
- Build a baseline model: employee count × average premium, then adjust for deductible and HRA.
- Target 90 %+ enrollment with clear communication and easy sign‑up tools.
- Calculate admin labor cost (hours × hourly rate) and compare DIY vs. broker‑managed options.
- Run side‑by‑side scenarios for PPO vs. HDHP + HRA, focusing on total cost of ownership.
- Audit exclusions each year and ask your broker to flag any gaps.
Bottom line: estimating small business health insurance cost isn’t rocket science, but it does require a bit of homework. By sidestepping these common mistakes, you’ll land on a number that feels realistic and, more importantly, manageable.
Ready to get a crystal‑clear estimate that accounts for every hidden factor? Give Life Care Benefit Services a call today, and we’ll walk you through a personalized cost model that puts you back in control.
Conclusion
After digging through premiums, plan designs, and hidden admin costs, the picture is clearer: small business health insurance cost isn’t a mystery, it’s a set of choices you can control.
Think about the levers we’ve walked through – employee count, deductible level, HDHP vs. PPO, and the tax‑friendly boost from an HRA or a living‑benefit rider. Each one is a dial you can turn a little at a time, and the savings add up.
So, what’s the next step? Grab a simple spreadsheet, plug in your headcount, run the quick checklist, and flag any exclusions that might bite you later. If the numbers still feel heavy, a quick call with Life Care Benefit Services can turn those figures into a concrete, personalized plan.
Remember, the goal isn’t just a lower premium; it’s a healthier bottom line and a team that feels protected. When you align the right plan with your business’s rhythm, the cost becomes manageable, not a constant source of anxiety.
Ready to lock in a realistic small business health insurance cost and keep your team covered? Let’s talk – schedule a free consultation today and take the guesswork out of your health budget.
Take the first step now; your future financial peace starts with this conversation.
FAQ
What factors actually drive my small business health insurance cost?
And the short answer is: everything you can control and a few things you can’t. Employee count sets the baseline, but plan design – PPO vs. HDHP, deductible size, and out‑of‑pocket limits – reshapes the premium. How much you contribute versus what employees pay, any HRA or living‑benefit rider, and the hidden admin hours all add up. Even the state’s participation requirement can push the per‑person number higher if you fall short.
How can I estimate the cost before I get a quote?
Start with a simple spreadsheet. Multiply your headcount by the average single‑employee premium – about $750 a month in 2024 – to get a rough baseline. Then adjust for the deductible you prefer (higher deductibles trim the premium), add an estimated HRA contribution, and factor in admin labor (hours × your hourly rate). Run the numbers a couple of times with different plan types and you’ll see a range instead of a single, scary figure.
Are high‑deductible health plans worth the higher out‑of‑pocket expense?
Most owners find they are. Pair an HDHP with a Health Reimbursement Arrangement and the premium can drop 12‑15 %. The HRA lets you reimburse employees tax‑free for qualified expenses, so the higher deductible doesn’t feel like a penalty. In a real‑world case a ten‑person shop saved $2,500 in premiums while only bumping employee out‑of‑pocket costs by $150 each year – a net win for the bottom line.
What’s the small business health insurance tax credit and how do I qualify?
If you have fewer than 25 full‑time equivalents and you pay at least half of your workers’ premiums, you may qualify for a federal credit of up to 50 % of your contribution. The credit phases out as payroll grows, so the sweet spot is usually between 5 and 15 employees. Check your eligibility on the HealthCare.gov portal, plug your contribution amount into the calculator, and you could see a few hundred dollars disappear from each month’s bill.
How much does admin time really cost my business?
Think about the hours you spend on enrollment, eligibility tracking, and compliance reporting. The average small firm logs around 80‑90 hours a year. At $25 an hour that’s $2,000‑$2,250 you could be investing elsewhere – like a wellness program or a higher‑value benefit. A broker who automates enrollment can shave a third off that time, turning a hidden expense into a tangible saving.
Can I mix individual coverage with a group plan to lower overall cost?
Yes, many owners use a Qualified Small Employer HRA (QSEHRA) to reimburse employees who buy individual Marketplace plans. The employer gets the tax advantage of an HRA while employees keep the freedom to pick a plan that fits their life. The key is to set a reimbursement cap that balances your budget and still makes the group option attractive enough to hit that 90 % participation threshold.
What’s the best next step to lock in a realistic small business health insurance cost?
Schedule a quick, no‑obligation call with Life Care Benefit Services. We’ll pull your headcount, run a side‑by‑side cost model for HDHP vs. PPO, factor in any HRA or living‑benefit rider you’re considering, and show you exactly how admin labor influences the bottom line. In less than 30 minutes you’ll walk away with a clear number and a concrete action plan.
