Finding the best health insurance for small business can leave you feeling handcuffed. Fully funded and level-funded plans offer little effort, but premiums only seem to go up and to the right, especially as you grow. Self-funded options seem daunting and could potentially be a heavy lift.
So what do you do?
Health insurance remains one of the most valuable investments you can make – supporting your employees’ wellbeing while strengthening your company’s stability and success.
The right plan structure can help you control costs, reduce turnover and create a workplace that attracts and retains great people. More than that, it can complement your broader business goals – helping you protect your team, your profits and the future you’re building.
Strike the right balance between cost, coverage and care – so you can choose the best health insurance for small business and build a foundation that fuels long-term growth.
Health insurance is a hefty line item on your budget, often coming in at No. 2 in terms of cost behind payroll. Yet, a well-structured plan is one of the smartest investments you can make in your people and your growth.
Here are a few key benefits of choosing the best health insurance for small business:
The goal is to find a structure that fits your budget, supports your team and strengthens your company year after year.
Learn other ways we can help you manage your businesses health insurance costs.
No two businesses are alike. Before deciding which option offers the best health insurance for small business, take time to consider these key factors:
When viewed holistically, your health insurance strategy becomes more than a compliance item — it becomes a cornerstone of your company’s resilience and success. To make the most impact, it should also connect with broader areas of your business, including:
Now that you know what to consider, let’s dive into the plan options.
A fully insured plan is the most traditional model – and often the first option people consider when looking for the best health insurance for small business. You pay a fixed premium to an insurance carrier, and in return, the carrier assumes the financial risk of your employees’ medical claims.
For businesses with fewer than 50 employees, fully insured coverage often feels like the safest route – and for some, that simplicity is worth it. But it can also be one of the most expensive long-term options. The key is knowing whether the stability of fixed premiums outweighs the potential for higher overall costs.
A level funded plan is a flexible approach that blends the structure of traditional coverage with the savings potential of self-funding – making it a strong option for those exploring the best health insurance for small business.
For this type of plan, you pay a consistent monthly amount that covers three areas: employee claims, stop-loss protection and administrative costs.
If claims come in lower than expected, you could receive a refund or credit at year-end. If they’re higher, your stop-loss insurance caps your costs.
Like any approach, level funded plans come with tradeoffs. It’s important to weigh whether the added insight and flexibility outweigh the extra responsibility that comes with managing them. For growing companies ready to take a more strategic approach to cost management, this model can be a powerful long-term solution.
Not every small business can – or should – manage a traditional group health plan. For many, Health Reimbursement Arrangements (HRAs) and similar reimbursement models are a smart alternative to consider when exploring the best health insurance for small business. They offer flexibility, cost control and simplicity – all without the administrative burden of a group policy.
An HRA lets you reimburse employees for qualified medical expenses or individual health insurance premiums on a tax-free basis. The two most common types are:
For small businesses that value flexibility and predictability, HRAs and reimbursement models can be an excellent alternative – especially when paired with strong communication and compliance support.
At Ellerbrock-Norris, we believe the best health insurance for small business isn’t just a policy – it’s part of a bigger plan to protect your people, profits and purpose.
Your employees are your greatest asset, and protecting their health protects your business. We help small business owners design benefits that create stability, strengthen retention and support growth – all within the larger framework of managing risk strategically.
Our approach looks at every angle, connecting compliance, culture and cost management to build a benefits strategy that works today and evolves with your business.
Ready to get started? Let’s chat.