Small business health insurance in Tampa, without the maze

• 59%of firms with 10 to 199 workers offer health benefits, versus 97% of larger firms
• $9,325average yearly premium for single employer coverage in 2025
• 50%of employer paid premiums, the most the small business tax credit can cover

Where small businesses stand right now

Offering health insurance is a real way to stand out when you hire. KFF's 2025 Employer Health Benefits Survey found that 59 percent of firms with 10 to 199 workers offer health benefits, compared with 97 percent of firms with 200 or more. Big employers nearly all offer it. Small ones are split, which means the ones that do have an edge.

The federal rule behind the callout above comes from the IRS. Only an applicable large employer, meaning one with an average of at least 50 full time employees including full time equivalents in the prior year, is subject to the employer shared responsibility rules. The IRS notes the vast majority of employers fall below that line.

Option 1: A traditional small group plan

The classic route. Your business picks a plan, the carrier bills the business, and you and your employees split the premium. Small group rates are community rated under the ACA, which means nobody on your team can be charged more for health conditions, and even a very small team can often qualify. It's clean, employees understand it, and premiums the business pays are generally tax deductible. Per KFF's 2025 survey, total premiums in employer plans average $9,325 a year for single coverage and $26,993 a year for family coverage, and the average worker pays $1,440 and $6,850 of that. How you split the cost between the business and your employees is where the design work happens.

Option 2: Reimbursement arrangements (ICHRA and QSEHRA)

Instead of buying one group plan for everyone, the business gives each employee a fixed tax free allowance, and they use it toward an individual plan they choose themselves. This caps your cost at a number you pick, works well for teams spread across different counties or states, and lets each person choose coverage that fits them. The trade off is more moving parts, and whether it beats a group plan depends on your team's ages and what individual plans cost in each person's area. This is exactly the comparison I run.

• QSEHRA is built for small employers that do not offer a group plan. For 2026 the IRS caps reimbursements at $6,450 for self only coverage and $13,100 for family coverage.
• ICHRA (an individual coverage HRA, which HealthCare.gov now calls a CHOICE Arrangement) can reimburse premiums and out of pocket costs. Employees and any covered family members must enroll in an individual market plan, and short term plans do not count. CMS says employers generally must send the offer letter at least 90 days before the plan year starts, and a newly offered ICHRA can open a special enrollment period for the employee.

These are still less common than group plans. KFF found that in 2025, 4 percent of firms offering health benefits and 9 percent of firms that do not offer them gave money to one or more employees to buy individual coverage.

Option 3: Level funded plans

A middle path for healthy teams: you pay a fixed monthly amount like regular insurance, but if your team has a low claims year, part of the money can come back. These can price meaningfully below traditional group plans for the right group, and they include stop loss protection so one bad year can't bury you. They are not a niche product anymore. KFF reports that 37 percent of covered workers at firms with 10 to 199 workers are in a level funded plan. Not right for every team, worth pricing for most.

The tax credit many owners miss

Businesses with fewer than 25 full time equivalent employees and modest average wages can qualify for the Small Business Health Care Tax Credit, worth up to 50 percent of the premiums the business pays (35 percent for tax exempt employers). According to the IRS, you must offer a qualified plan through the SHOP Marketplace, pay at least 50 percent of employee only premiums, and the credit is available for two consecutive tax years. It has specific requirements, so it's worth checking your eligibility with your accountant before assuming you don't qualify.

How I help owners choose

Before I price anything, I ask four questions. How many people, and how many of them want coverage. What you can comfortably spend per person each month. Where your people live. And whether anyone on the team has ongoing care that makes the network a deal breaker. With those answers, I price all three options side by side so you are comparing real numbers, not brochures.

If it is just you right now, start with my guide to self employed health insurance. If you buy an individual plan for yourself, or your team uses reimbursement dollars on individual plans, open enrollment for 2027 coverage runs on these dates on HealthCare.gov. Florida uses HealthCare.gov.

• November 1, 2026Open enrollment begins for 2027 coverage
• December 15, 2026Last day to choose a plan that starts January 1, 2027
• January 15, 2027Open enrollment closes on HealthCare.gov

What this looks like in Tampa Bay

I'm based on East Hillsborough Avenue and work with owners across Tampa, Brandon, Riverview, Temple Terrace, Wesley Chapel, Plant City, St. Petersburg, Clearwater, Sarasota, and Bradenton. The pattern I see locally: restaurants, trades, medical offices, and professional firms with 2 to 20 people, most of whom assumed group coverage was out of reach until someone actually priced all three options side by side. The comparison costs nothing, and brokers are paid by carriers, so plan prices are identical with or without me. Here is exactly how that works, a little more about me, and my guide to choosing a Florida broker.

Common questions