Offering health benefits is one of the most effective ways for a small Florida business to hire and keep good people. It's also one of the most confusing purchases an owner makes. Here's how the options work.
Who counts as a small group in Florida
In Florida, small group health insurance generally applies to employers with 1 to 50 employees. Most carriers need at least one enrolled employee who isn't the owner or the owner's spouse. Fully insured small group plans can't turn employees down or charge more because of health history; level-funded plans may ask health questions when pricing the group.
Your four main options
| Option | How it works | Often a fit for |
|---|---|---|
| Fully insured group plan | Fixed monthly premiums; the carrier carries the claims risk. | Owners who want predictable costs |
| Level-funded plan | A fixed monthly amount covers expected claims, administration and stop-loss; some carriers refund a surplus. | Smaller, healthier groups |
| ICHRA | You reimburse employees tax-free for individual premiums, with allowances by employee class. | Remote or multi-state teams |
| QSEHRA | Tax-free reimbursement with annual limits, for employers with fewer than 50 full-time employees and no group plan. | Very small teams on a tight budget |
What carriers will ask for
- An employee census: names or initials, dates of birth, ZIP codes and who wants coverage.
- Participation: a minimum share of eligible employees must enroll or show other coverage.
- Employer contribution: many carriers require the business to pay a minimum share of employee premiums.
- Business documents: such as a recent payroll report and proof the business is established.
What it costs, and tax considerations
Group premiums depend on employees' ages, location, plan design and the structure you choose. Premiums the business pays for employees are generally a deductible business expense. Very small employers with lower average wages that buy through the SHOP marketplace may qualify for the Small Business Health Care Tax Credit. Your CPA should confirm what applies.
A simple way to start
- Decide on a monthly budget per employee.
- Gather a basic census.
- Compare a group plan, a level-funded plan and an ICHRA side by side.
- Choose, set your contribution, and enroll employees.
We do this comparison for you. Request a benefits review or read more about small business health benefits.
Sources
General information only, not tax, legal or medical advice. Plan availability, benefits, networks and pricing vary by carrier, state, county and eligibility. Stratton Advisory Group is an independent agency and is not affiliated with any insurance carrier or government agency.