How Much Does Small Business Health Insurance Cost?

How much does small business health insurance
cost? People are often surprised to learn that small
business health insurance coverage often costs less than coverage bought in the individual
insurance market. Research published by eHealth in 2016 found
that the average small business health insurance plan cost $286 per person, and those monthly
premiums are then split between the employer and employees. By comparison, the average monthly premium
for people who bought individual coverage for themselves without an Obamacare subsidy,
cost $393 a month. With a small group health insurance plan,
what you end up paying for can be influenced by three key factors. Those factors are: The ages of the people in your group and where
you’re located. Your preferences for out-of-pocket costs like
deductibles and co-pays. And how you shop for and buy coverage. Let’s examine each of these in more detail: First, your small business health insurance
costs may be affected by the ages of the people who are going to be covered, and where you
live. Pre-existing medical conditions generally
won’t affect your premiums, and no one can be turned down for coverage because of his
or her medical history. Second, if you want to spend less in monthly
premiums, you may want to pick up a plan with higher deductibles and out-of-pocket costs. Conversely, if you want a plan that offers
lower out-of-pocket costs, you may consider paying more in monthly premiums. Finally, you should know that who you buy
your plan from will NOT affect your costs, but shopping around can save you money. You won’t save anything by buying a plan
directly from the insurance company, that’s because insurance prices are fixed by law
for each plan. So if you work with a licensed agent that
represents multiple insurers, a broker can help you compare multiple plans from different
companies to find the best match for your needs and budget. To learn more about your small business health
insurance options today, visit eHealth.com.