What it is
Employee benefits are the non-wage items an employer offers to help people stay healthy, secure and committed to their work. Health benefits plans are often the centerpiece, but a full employee benefits package may also include dental, vision, life, disability, retirement and other perks.
Small business health insurance usually means a group plan where the employer and employees share the cost of coverage. Another route is an ICHRA (individual coverage health reimbursement arrangement), where an employer reimburses employees for coverage they choose themselves. Rules, eligibility and availability vary by state, carrier and business size, so details should be confirmed with a licensed professional.
Voluntary benefits are optional products employees may elect, often paid by the employee through payroll. A Section 125 cafeteria plan is a tax-related structure that lets employees set aside certain pay for eligible benefits. Because tax treatment can be complex, an employer should confirm how it applies with a qualified tax or legal professional. Where public programs such as the ACA marketplace come up, note that 2A Benefit is an independent, privately run site, not connected with or endorsed by the U.S. government, CMS, HealthCare.gov or any government agency.
How it’s traditionally been approached
Many small employers have traditionally started with a group health plan from a single carrier, offering one or a few plan designs to everyone on the team. This approach can be simple to administer and familiar to employees, though choices and costs depend on the carrier, location and group.
Some employers have layered on voluntary benefits, such as supplemental or ancillary products, to round out a package without a large added commitment. Others use a Section 125 cafeteria plan to organize how employee contributions are handled.
More recently, some businesses have looked at ICHRA as a way to give employees more choice while keeping the employer's contribution defined. Each approach has trade-offs in flexibility, administration and employee experience, and none is right for every business.
How the right agent may help
The right independent agent may help you sort through these options in plain language. A first conversation is generally a chance to describe your team, your goals and your comfort with administration, rather than a commitment to buy anything.
You might ask: Which carriers and arrangements are you appointed with? How do group plans, ICHRA and voluntary benefits differ for a business like mine? What does enrollment and ongoing administration look like? What happens as my team grows or changes?
Agents must be licensed in each state where they sell, so confirm any agent's license with your state insurance department. Quotes come from licensed agents and carriers, not from 2A Benefit, and no agent can promise acceptance, savings or that a particular option is best.
The bigger picture
Benefits decisions are about people as much as paperwork. Knowing that health needs are supported may give employees greater peace of mind, and owners may feel more confident that they are caring for the team that supports the business. Money worries and health worries often feed each other, so clarity can help.
Taking time to understand your options may reduce stress later. If your team is also looking for care, a directory like Providers.plus may help people find providers. Every business and every household is different, and no single approach is better than another for everyone.
Keep in mind
- 2A Benefit is educational only and does not provide insurance, legal, tax, medical or financial advice.
- Costs, plan availability and rules vary by carrier, state and year, so always get current details from a licensed agent or the carrier.
- Confirm an agent's license with your state insurance department, and compare terms directly with each carrier or provider.
- Some offerings are memberships rather than insurance, so read what a plan does and does not cover before enrolling.
Guides in this topic
Agent types
Group health & employee benefits
small group health plans · employee benefits packages · ICHRA / QSEHRA options · benefits administration
Dental & vision plans
individual dental plans · vision plans · dental for seniors
Disability & supplemental insurance
short- and long-term disability · accident insurance · critical illness insurance · hospital indemnity
Frequently asked questions
What is small business health insurance?
Small business health insurance is coverage an employer arranges to help employees pay for medical care, most often through a group health plan. Employers and employees typically share the cost. Options and eligibility vary by state, carrier and business size, so a licensed agent can explain what may be available.
How do I offer health insurance to employees?
You can offer health insurance to employees by choosing an arrangement such as a group plan or an ICHRA and then enrolling through a carrier or licensed agent. Typical steps include deciding how much you want to contribute, comparing options and setting up enrollment. A licensed agent may walk you through the specifics for your state.
ICHRA explained: what is it?
An ICHRA is an arrangement where an employer reimburses employees for individual health coverage they choose. It gives employees more choice and the employer a defined contribution. Rules and how it works alongside marketplace coverage vary, so confirm current details with a licensed agent; 2A Benefit is not connected with any government agency.
How do I get a group health insurance quote?
You get a group health insurance quote by contacting a licensed agent or carrier and sharing basic information about your business and team. The agent can request quotes from carriers they are appointed with. 2A Benefit does not provide quotes; licensed agents do.
What are voluntary benefits?
Voluntary benefits are optional insurance or benefit products that employees choose and usually pay for themselves, often through payroll. They can supplement a main health plan. Availability and terms vary by carrier and state.
What is a Section 125 cafeteria plan?
A Section 125 cafeteria plan is a written employer plan that lets employees choose among certain eligible benefits, often using pre-tax pay. Tax treatment can be complex, so an employer should confirm how it applies with a qualified tax or legal professional. This page is educational only and not tax advice.
Educational resource. 2A Benefit shares general information and connects people with independent agents. It is not professional advice. Talk with a qualified professional about your own situation.