Small Business Health Insurance Plans

A group health plan is employer-sponsored coverage offered to eligible employees and, in many cases, their dependents. It may include medical coverage and can be paired with dental, vision, life, disability, HRA, or HSA options. Plans can be fully insured, level-funded, or self-funded. Eligibility rules, employer contributions, enrollment procedures, and compliance responsibilities should be clearly documented in the plan materials.

Eligibility for small-group coverage is generally based on having at least one eligible employee, though carrier participation and contribution requirements can vary. Owners, spouses, and part-time employees may be treated differently depending on business structure and plan rules. Franklin Benefits Group can review your employee census, ownership arrangement, and desired eligibility policy to identify viable options and avoid enrollment surprises.

With a fully insured plan, the employer pays a set premium and the insurance carrier assumes claims risk. A level-funded plan also uses a predictable monthly payment, but it is a form of self-funding that may return surplus funds when claims are lower than expected. Level funding can offer greater cost transparency, while stop-loss protection helps limit exposure to high claims.

Self-funding can suit a small business with stable finances, a well-understood risk tolerance, and interest in more plan-design flexibility. Employers pay claims as they occur rather than prepaying a traditional premium, and may reduce certain overhead and premium-tax costs. Stop-loss insurance is commonly used to manage high-claim risk. A claims and cash-flow review is essential before choosing this approach.

An HRA can allow an employer to reimburse eligible employee healthcare expenses under a defined arrangement, while unused HRA funds generally remain with the employer. An HSA is an employee-owned, tax-advantaged account that must be paired with a qualified high-deductible health plan. Both approaches can help structure deductible support, encourage informed healthcare spending, and make benefits contributions more flexible.

Yes. An Individual Coverage Health Reimbursement Arrangement, or ICHRA, lets an employer set reimbursement amounts for employees’ individual health coverage and eligible expenses. Employers can vary contributions among permitted classes, such as full-time, part-time, seasonal, hourly, or salaried employees. However, a traditional group plan and ICHRA generally cannot be offered to the same employee class, so careful design and communication matter.

Yes. Franklin Benefits Group supports employee communications and benefits administration so employees can better understand their available coverage and enrollment choices. Clear communication is especially important when introducing plan changes, high-deductible options, HSAs, reimbursement arrangements, or voluntary benefits. The team also offers HR and benefits technology tools, including online enrollment resources, to reduce repetitive paperwork and improve the enrollment experience.

Yes. Employers can generally appoint a new broker through a Broker of Record letter during the plan year without waiting for renewal or changing their existing plan immediately. This allows Franklin Benefits Group to conduct an in-depth market analysis, seek quotes from multiple carriers, and provide ongoing service. The appropriate timing and carrier requirements should be reviewed before submitting the designation.