Health insurance for small business owners and entrepreneurs

Two separate decisions

Owners often mix up personal coverage and employee benefits. They're different products with different rules.

Sort out your own family first. Then decide if, and when, offering a plan to employees makes sense.

(a) Coverage for you and your family

If it's just you, or you and a spouse, you have the same choices as any self-employed person.

• ACA marketplace plan, with a subsidy if household income allows
• Private underwritten PPO, often with a national network
• Level-funded PPO built for business owners

Owners above the subsidy line

Profitable owners often earn more than 400% of the poverty level, so there's no 2027 subsidy. A full-price exchange plan can be expensive.

That's where private and level-funded plans are worth comparing — if you and your family can pass the health questions.

The self-employed premium deduction

Owners with a net profit can generally deduct health premiums for themselves, a spouse and dependents. It's taken above the line.

S-corp owners follow special rules for how premiums are reported. General information, not tax advice — ask your tax professional.

(b) Offering a plan to employees

Once you have employees, a small-group plan can help you hire and keep good people. Group plans have their own rules on participation and contributions.

BeneHub's small-group team handles employer plans separately from individual coverage.

• Decide what share of the premium you'll pay
• Check minimum participation rules
• Compare group plans with alternatives such as an ICHRA or QSEHRA

Starting a new business?

If you're leaving a job to launch, you may have COBRA, a 60-day special enrollment window on the exchange, or a private plan that starts any month.

Line up new coverage before your last day so there's no gap.

Questions to answer before you choose

Your answers point to the right path quickly. A licensed advisor can walk through them with you at no cost.

• Do you and your family need guaranteed acceptance because of a health condition?
• Is anyone expecting a baby or planning one soon?
• Will your 2027 household income be above 400% of the poverty level?
• Do you plan to hire in the next year?
• Do you need a network that works in more than one state?

How BeneHub helps owners

For your own family, a licensed advisor compares ACA, private and level-funded options in your state and checks your doctors before you apply. If the exchange is the better deal, we'll say so.

For your team, our group specialists handle small-group plans separately, so you get advice built for employers. You never pay us a fee — carriers pay us a commission, and your premium is the same either way.