How many employees do you need for a small group plan?

Most carriers require at least two enrolled employees, and the small group definition generally extends to employers with up to 50 full-time equivalent employees. Exact thresholds vary by state and carrier.

Can employees be turned down for health reasons?

Eligible employees cannot be denied coverage or charged more because of health status under a small group plan. That protection is one of the main advantages over individual underwritten coverage.

How much does the employer have to contribute?

Carriers typically require the employer to pay a minimum percentage of each employee's premium, commonly a set share of the employee-only rate. [VERIFY: current contribution requirement for your state.]

Can we enroll in a group plan at any time of year?

Yes. Unlike individual ACA coverage, group plans are generally available year-round, subject to carrier underwriting of the group itself and any participation rules.

Are dependents included in a small group plan?

Many carriers allow employees to add a spouse and children, though the employer contribution may apply only to the employee. Ask for the rate sheet so you can show employees the full cost.

Is a group plan cheaper than individual plans?

Not always per person, but the employer contribution, broader networks and tax treatment often make benefits more affordable for employees. Comparing total cost for your specific team is the only way to know.

Small Group Health Insurance for Small Businesses

Last updated: 2026-10-23 · Reviewed by [Licensed Agent Name], Licensed Health Insurance Agent

Small group health insurance is employer-sponsored coverage for businesses that meet the carrier's size rules, typically 50 or fewer full-time equivalent employees. Unlike individual coverage, group plans are guaranteed-issue for eligible employees, can be enrolled outside open enrollment, and usually require the employer to pay a share of the premium.

Offering benefits is one of the most effective ways a small business competes for good people. The mechanics are different from buying an individual plan, so here is how the pieces fit together.

What is a small group health plan?

A small group plan is a single policy issued to a business that covers its eligible employees and often their dependents. Eligibility rules — participation percentages, waiting periods and who counts as a full-time employee — are set by the carrier and by state and federal law.

Guaranteed issue for eligible employees regardless of health history
Enrollment is available year-round, not just during open enrollment
The employer usually pays a fixed share of each employee's premium
Dependents may be added if the carrier allows it

Does your business qualify?

Most carriers define small group by the number of full-time equivalent employees, and the threshold varies by state. Businesses also typically need to meet minimum participation and employer contribution requirements.

[VERIFY: current small group size threshold, minimum participation and contribution rules for your state, and the carriers writing group business there.]

How group plans differ from individual plans

Group vs. individual coverage

Feature	Small group	Individual / family
Who is covered	Employees and often dependents	You and your household
Health screening	Not used for eligible employees	Individual ACA plans must accept you
Enrollment window	Year-round	Open enrollment or a life event
Who pays	Employer share plus payroll deduction	You pay the full premium
Tax treatment	Employer contributions are deductible	Depends on your situation

What to compare when you shop for your team

Price is only part of it. Compare network access across every county where your employees live, the plan types offered (HMO, PPO, EPO), prescription coverage, and how much administration the carrier requires of you each month.

Other options for small employers

Some businesses pair a group plan with supplemental benefits such as dental, vision, life or accident coverage. Others use a health reimbursement arrangement to let employees buy their own individual coverage. Which route is best depends on your headcount, budget and how much turnover you expect.

Frequently asked questions

Have questions about Small group plans?

Answer a few quick questions and a licensed agent will compare plans from major carriers to find coverage that fits your budget — usually in one short phone call. Free to use, no obligation to enroll.

Get my free quote Call (864) 523-5595

Written and reviewed by a licensed agent

[Licensed Agent Name]

Licensed Health Insurance Agent · [NPN / State Insurance License No.]

[VERIFY: 2–3 sentence bio — years of experience, states licensed in and product specialties.]

Licensed in all 50 states. Last updated: 2026-10-23

Keep reading

Quote My Health Plans is an independent insurance agency, not a government agency and not affiliated with HealthCare.gov or any federal or state agency. We do not offer every plan available in your area; any information we provide is limited to the plans we do offer. Plan availability, benefits, networks and pricing vary by carrier, county and plan year. This information is educational and is not an offer of insurance or a guarantee of coverage.