Cheap health insurance for small business: your real options

Why group plans feel so expensive

Group premiums rise almost every year, and small businesses have the least negotiating power. Worse, many group plans require a high percentage of employees to enroll, so you can end up paying for a plan that doesn’t even fit your team. The result is sticker shock at every renewal.

The affordable options worth comparing

• ICHRA: set a fixed monthly allowance and reimburse employees tax-free for individual plans. You control the budget exactly.
• QSEHRA: a simpler, capped version of the same idea for businesses under 50 employees.
• Level-funded or association plans: can lower premiums but shift some risk to you.
• Bare-bones group plans: cheaper, but often with coverage gaps employees dislike.

Why ICHRA is often the cheapest predictable option

With group insurance, your cost is whatever the insurer charges at renewal. With an ICHRA, your cost is whatever you decide. You set the monthly allowance, employees buy individual coverage with it, and your budget never gets surprised by a renewal hike. For many small businesses, that predictability is the real savings.

How to keep coverage affordable without cutting quality

You don’t have to choose between cheap and good. With an ICHRA, employees can put your allowance toward plans they actually value, and you avoid paying for a one-size group plan. A broker helps you set an allowance that’s generous enough to matter but fits your budget.