Written by Kimberly Gibas CIC, CAWC

Considering health insurance for your employees in 2023? Educate yourself and know your options before you start your search. There’s a lot of information out there, here is a simplified outline that will help you navigate through so you won’t get lost or overwhelmed.

Health Insurance Options for Michigan Businesses with Less than 50 Employees

1. Offering Traditional Small Business Health Insurance through BCBSM, HAP, Priority, UnitedHealthcare, Aetna etc.
2. Offering HSA, HRA or Level Funded Plans
3. Offering Nothing

Two Primary Categories of Health Insurance for Small Business to choose from:

1. Individual health insurance
2. Group health insurance

Individual Health – These are health insurance plans purchased by individuals to cover themselves and/or their families.  Anyone can apply for individual health insurance.  Many Small Businesses who can’t afford or couldn’t afford group health, purchased individual coverage for themselves and/or employees. Historically, individual health insurance has been less expensive than group, that has recently changed, and employers are now seeing they are able to offer group health coverage for themselves and their employees at a savings.

Group Health Insurance – An employer sponsored health coverage for employers with 2 or more employees.  Costs are typically shared between the employer and the employee, and coverage may extend to dependents. Benefits are usually more comprehensive with lower deductibles and out of pocket expenses than individual.

Types of Michigan Small Business Health Insurance Plans

1. PPO – Provides in and out of network coverage.  Can self-refer to specialists, your Primary Doctor does not act as the gatekeeper for you
2. HMO – Usually less expensive, lower copays and deductibles.  Coverage for In-network providers that contract exclusively with the HMO, or who agree to provide services to members.  Employees typically need to select a primary care physician to provide most of their health care and refer them to specialists as needed.
3. HSA – Qualified Health Insurance Plan – Are typically PPO plans designed specifically for use with Health Savings Accounts.  An HSA is a special bank account that allows the participants to save money pre-tax to be used specifically for medical expenses in the future.  HRA’s are sometimes used in the place of HSA’s due to their advantages for employers.
4. Indemnity Plans – Allows members to direct their own health care and generally visit any doctor or hospital.  The insurance company then pays a set portion of the total charges. Employees may be required to pay for some services up front and then apply to the insurance for reimbursement.

If you would like to explore group health insurance, we can assess your needs and provide you with a complimentary quote. 

Best Health Insurance Options for Small Business Owners in Michigan

If you are considering group health insurance or want to know more about the available plans and what the best options are for your small business, without breaking the bank: Call The Dearborn Agency to get in contact with one of our Agents.