How Much Does Small Business Health Insurance Cost in California?

If you are running a small business in California, you may be wondering how much small business health insurance costs. Every small business owner knows the struggle of building a successful company. There is a lot to do, a lot to think about, and a lot to arrange. 

One of your main struggles may be finding suitable health coverage for your workers. Medical insurance can be costly, and when you are running a small business in California, your budget can be tight. Luckily, there have been recent legislative changes to provide small businesses with better ways to obtain low-cost coverage. So, what are your options for small business health insurance, and how much will they cost you?

How Much Does Group Health Insurance Cost for Small Businesses?

The average premium per person for group health insurance coverage in California is around $450 a month. Employees and employers split those costs. The cost of a group plan is cheaper than the cost of other types of insurance plans because of the advantage of having a larger risk pool. The larger the number of people covered by the plan, the more payments that come in every month. With more payments coming in, the insurer has a larger pool of money to draw on should an enrolled member require care.

Cost Benefits Associated with Health Insurance for Small Businesses in California

Some people running small companies think they cannot offer competitive health insurance coverage to their workers. This is no longer the case. At one time, only large organizations could afford to arrange health insurance for their workers. Now, even small firms can offer their employees comprehensive medical coverage thanks to the excellent group insurance package options that are available today. 

Group health insurance for small businesses in California comes with a competitive price tag. However, there are also cost benefits that reduce the expense of arranging health coverage for workers. First, many employees are happy to work for lower salaries if they can benefit from quality medical insurance. Lower salaries will reduce costs in terms of staff payroll. 

Second, small businesses in California can receive substantial tax benefits if they offer their staff members health insurance. Reducing tax burdens is something every small business wants to do!

Also, small businesses often benefit from lower rates on health insurance. As another added advantage, there are flexible plans available, meaning that employees have a variety of rates and options. All this helps to reduce the overall cost of providing insurance coverage for small business employees.

What Will Influence the Cost of Group Health Insurance for Small Businesses?

The cost mentioned above is just an average figure. Several factors will influence the amount your business will need to pay for premiums. These include:

  • The age of the members in your insurance group
  • Where your business is 
  • How you buy your coverage
  • Your preferences for out-of-pocket expenses

Insurers will set your premium depending on the location and age of your employee group. Luckily, pre-existing conditions do not generally affect the premiums. 

If you’d prefer to pay less each month, you should choose a plan that has higher out-of-pocket costs and deductibles. However, you may want to pay a higher monthly premium for lower deductibles and out-of-pocket expenses. Yet, if your employees rarely visit a doctor, a high deductible plan may be the best choice.

Choosing Coverage for Your Workplace

Choosing the right insurer can help with small business health insurance costs in California. Although every kind of plan has a legally fixed price, you need to choose the right match. Compare a choice of plans to determine which one best meets your needs and fits your budget. An insurance broker can help you with this. 

It can be overwhelming to go through all the different options available to you and your small business. Preferred Insurance in California is here to help. We deal with all the health insurance providers in California. That allows us to help your business navigate the process of choosing an insurer to set up a plan. 

We will help you compare small business health insurance costs to find the right plan for you. With years of experience as group health insurance brokers in the industry, you can depend on us to explore all your options fully.

Contact us for a free quote on group health insurance plans. We are certain that we can find you, your small business, and your employees a great value insurance package. Contact us today!

More to Read

What is the Average Company Contribution to Employee Health Insurance? 

Can Employers Give Employees Money for Health Insurance in California?

What Are My Employee Health Insurance Options in California?