Can You Put Health Insurance Through Your Business?
Can You Put Health Insurance Through Your Business?
Starting or expanding a business often brings complex decisions—one of which is whether to offer health insurance to employees. For business owners, the question isn’t just about cost, but also about compliance, employee retention, and long-term growth. Many wonder: can I put health insurance through my business? The short answer is yes—under the right structure and plan, offering group health coverage is not only feasible but strategically valuable.
Why Businesses Offer Health Insurance?
Providing health insurance isn’t just a perk—it’s a competitive advantage. According to 2024 data from the Bureau of Labor Statistics, businesses with health benefits report 30% higher employee retention rates compared to those without. In a tight labor market, offering comprehensive health coverage helps attract top talent and reduce turnover costs, which can reach up to 150% of an employee’s salary when turnover occurs.
Moreover, offering health insurance strengthens an employer’s reputation as a responsible and caring business. Employees value stability and well-being support, increasing engagement and morale. This translates into a more productive workforce and better customer experiences.
Legal and Tax Considerations for Business-Owned Plans
Setting up a health insurance plan through your business requires navigating IRS regulations and tax implications. Most employers can offer qualified group health plans under the Affordable Care Act (ACA), provided they meet minimum essential coverage standards. These plans allow premiums to be shared between employer and employee, with employer contributions typically tax-deductible under IRS code 105.
Importantly, contributions made by small businesses (under 50 employees) are not considered taxable income to employees, enhancing the net value of the benefit. Employers must also comply with reporting requirements, including filing Form 1095-C to confirm employee coverage status and avoid penalties.
Practical Steps to Launch a Business Health Insurance Plan
To begin offering health insurance, start by evaluating your business size and financial capacity. Most small to medium businesses (1–50 employees) can enroll in group plans through brokers, professional employers (PEOs), or self-insured models. Partnering with a licensed insurance provider ensures compliance and access to competitive rates.
Next, design a plan that aligns with employee needs—considering coverage levels, deductibles, and network providers. Transparent communication is vital: clearly explain eligibility, coverage details, and enrollment processes. Transparency builds trust and ensures employees fully utilize benefits.
Finally, manage ongoing compliance by tracking enrollment, filing required forms, and staying updated on evolving regulations. Using digital tools and HR platforms simplifies administration, reducing administrative burden.
Real-World Benefits Backed by Current Trends
since 2023, businesses adopting group health coverage report measurable gains. A 2025 survey by the Society for Human Resource Management (SHRM) found that 68% of employers offering health insurance saw improved job satisfaction scores. Additionally, offering benefits helps small businesses compete with larger firms, especially in industries facing talent shortages.
Emerging trends include high-deductible health plans (HDHPs) paired with health savings accounts (HSAs), which offer tax advantages and flexibility. Telehealth integration is also becoming standard, providing convenient access to care with minimal cost. These innovations make modern health plans more accessible and valuable.
Conclusion: Take Action Today
Offering health insurance through your business is not only possible but a powerful way to support your team and grow sustainably. Start by consulting a qualified benefits advisor to assess your options, evaluate costs, and choose a plan that fits your workforce. Investing in employee health pays dividends in loyalty, productivity, and long-term success. Act now—your team deserves it.