First, breathe: if you have fewer than 50 full time employees, federal law does not require you to offer health insurance at all. Everything below is about offering benefits because you want to compete for good people, keep the ones you have, and do it tax efficiently.
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 team of two can often qualify. It's clean, employees understand it, and premiums the business pays are generally tax deductible. Per KFF's 2024 employer benefits survey, total premiums in employer plans average about $9,000 a year for single coverage, so cost sharing between business and employee 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.
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. 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. It has specific requirements, so it's worth checking your eligibility with your accountant before assuming you don't qualify.
What this looks like in Tampa Bay
I'm based on East Hillsborough Avenue and work with owners across Tampa, Brandon, Riverview, St. Petersburg, 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.
Price all three options for your team
Tell me your headcount and rough budget, and I'll come back with real numbers on a group plan, a reimbursement arrangement, and a level funded option. Free, no pressure.
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