What employers & small businesses need to know when choosing health insurance in Florida

A healthy and happy workforce is a productive and cost-effective one. Providing your employees with access to healthcare can be a great way to compete in the hiring marketplace while also helping your employees thrive. Suppose your business is located in the Sunshine State and you’re considering your health insurance options. In that case, we’re breaking down what you need to know about small business health insurance in Florida.

What is small business health insurance?

When a small business wants to provide their employees with access to a healthcare plan, they need to secure small business health insurance. You’ll often hear this type of insurance referred to as group health insurance. Offering health insurance coverage to your employees is a great way to attract and retain top talent, as well as doing right by your hardworking team. You can use the Healthcare.gov search engine to discover what types of small business health insurance coverage are available in Florida. 

Health insurance basics

Like employers in all states, Florida small businesses must adhere to certain regulations when it comes to employee health insurance offerings. Any Florida businesses with fewer than 50 employees that are classified as either full-time or full-time equivalents won’t need to provide access to health insurance coverage to qualifying team members. If your business is required to provide health insurance to employees, what this coverage looks like can vary and may include health reimbursement arrangements (HRAs), Small Business Health Options Programs (SHOPs), health savings accounts, or health plans with tax-saving benefits. 

Finding the right small business health insurance plan

Choosing the right health insurance plan for your employees requires thoughtful care and consideration. To find the right fit, you will want to take coverage options, network size, and employee needs into account. To start, you will want to evaluate a few different plans and providers to see which can offer you the right fit as well as your desired premiums, deductibles, and copays.

When it comes to health insurance pricing, you will also want to consider how you can achieve tax credits to help offset the cost of your spending. Your small business may be able to qualify for the Small Business Health Care Tax Credit, which can result in receiving up to 35% (non-profit employers) to 50% of the costs of employee premiums. To earn this tax credit, your business must enroll in a SHOP plan.

You will also need to meet the following requirements:

• You employ fewer than 25 full-time equivalent (FTE) employees

• Your average employee salary is approximately $56,000 or lower annually

• You cover at least 50% of your full-time employees' premium expenses

• You provide SHOP coverage to all full-time employees (there is no requirement to extend it to dependents or part-time employees working less than 30 hours per week to qualify for the tax credit)

Types of Health Insurance Plans Available

Health Maintenance Organizations (HMOs)

• Pros: Lower out-of-pocket costs, coordinated care through a primary care provider (PCP), focus on preventive health.

• Cons: Limited provider network, less flexibility in choosing healthcare providers (Anthem)​.

Preferred Provider Organizations (PPOs)

• Pros: Greater flexibility, ability to see specialists without referrals, coverage for out-of-network care (at higher costs).

• Cons: Higher premiums and out-of-pocket costs​ ​​ 

Exclusive Provider Organizations (EPOs)

• Pros: Lower premiums, and flexibility within the network.

• Cons: No out-of-network coverage except in emergencies​​​ 

High Deductible Health Plans (HDHPs) and Health Savings Accounts (HSAs)

• Pros: Lower premiums, and tax benefits with HSAs, encourages cost-conscious healthcare usage.

• Cons: High out-of-pocket costs before meeting the deductible​ 

Indemnity Plans

• Pros: Maximum flexibility, no referrals needed, predictable costs for covered services.

• Cons: Higher premiums, more administrative tasks for reimbursements​.

Benefits of Offering Health Insurance

Attraction and Retention of Top Talent

Health insurance is a key factor for job seekers. The majority of employees (88%) consider it one of the most important benefits an employer can offer​​​ (U.S. Chamber of Commerce)​. Providing health insurance helps reduce turnover rates, saving on hiring and training costs.

Improvement in Employee Health and Productivity

Preventive care and wellness programs lead to early detection and treatment of health issues, reducing the need for expensive treatments later and decreasing absenteeism due to illness​ (CDC)​​ (CDC)​. Healthier employees are more engaged and productive. Health insurance offers employees financial security, protecting them from high medical costs and improving job satisfaction and loyalty​ (Sobal Nationwide Health)​​ (Anthem)​.

Tax Benefits

Small businesses with fewer than 25 employees and average wages below $56,000 may qualify for the Small Business Health Care Tax Credit​​. Contributions to HRAs are tax-deductible, reducing overall taxable income​.

How to enroll in small business health insurance in Florida

The enrollment process for small business health insurance in Florida is fairly straightforward. To start, you need to confirm your business’s eligibility. Your business can only have up to 50 employees. Once you determine your eligibility, you can enroll immediately. There is no need to wait for an Open Enrollment Period which enables you to start offering healthcare coverage to your employees at any point. To enroll, you can connect with a broker or agent who is SHOP-registered. Working with an expert will make it easier for you to find the best health insurance for small businesses in Florida.

Federal health insurance regulations

Want to learn more about Florida health insurance regulations? These are some helpful facts relating to how the Affordable Care Act can impact your small business:

• You may be able to enroll in SHOP through private health insurance companies in Florida — a SHOP-registered agent or broker can assist with this process

• SHOP plans are the only way your business can qualify for the Small Business Health Care Tax Credit

• Your employees won’t be able to contribute more money than allowed by the annual dollar limit set by the IRS to their Flexible Spending Accounts

Legal obligations of small business owners

Understanding what your legal obligations are as a small business regarding health insurance can help you do right by your employees and the law. For example, if a small business offers healthcare to some employees, they must also offer it to any other eligible employees. Businesses must also provide their employees with a Summary of Benefits and Coverage (SBC) form that includes key information about what it will cost them to enroll in the healthcare plan and what it covers. (HealthCare.gov). 

Managing small business health insurance

Learning how to manage a small business health insurance plan on behalf of your employees is a commitment. To help make the process more efficient, it’s important to keep up-to-date on all state regulations and laws. Ensuring compliance now can save you a lot of stress in the future. Carving out time regularly to stay abreast of compliance best practices is smart. As is continuously working on educating your employees about your benefit offerings and how they can utilize them. Hosting workshops, sending an educational newsletter, and encouraging employees to ask for help are all great ways to spread awareness.

Resources and support

Only about 11% of Florida residents have health insurance coverage, so offering this resource to your employees can make a huge difference in their quality of life (United States Census Bureau). Offering healthcare to your employees is likely something you care deeply about, but it can be an intimidating process to start. This resource can make it easier to find the best health insurance for small businesses in Florida:

• Thatch. Request a free demo with Thatch to find out how you can save an average of $1,620 per employee each year

• Healthcare.gov. Learn more about your Small Business Health Options Program (SHOP) coverage options