Small Business Group Vs. Individual Health Insurance – 2017 Update

Since 2014, individual health insurance premiums have been increasing rapidly, usually around 50% per year.  Even with those increases, however, from 2014 – 2016 many employers still thought it was financially beneficial to not offer group health insurance to employees.

All of that will change for 2017.

As you may have read in the papers and online, individual rates are scheduled to increase up to 60%.  Small group rates, on the other hand, are only increasing up to 15% with some plans actually decreasing!  That means small group plans will be substantially less expensive than individual plans in 2017.

So how do you get small group health insurance?  Do you qualify for a small group health insurance plan? 

In general, you must have two employees or more to start a group health insurance plan.  Those who are either S-Corporations or C-Corporations can possibly start plans with less than two employees, including possibly even starting a plan with the owner as the only employee.  Businesses in certain geographic areas will not have access to carriers that will allow an S or C Corp with one employee to start a plan, but most will. 

Please call or e-mail an MNHI broker to discuss what type of plan, carrier and strategy is right for your future health insurance needs!